Isn't it bad that the HBD is dropping? If we want HBD to be used more, there needs to be a lot more HBD out there and I think the floor price depends on the price of Hive too much. However, I don't think the haircut rule matters as much as people would just get HP instead in author rewards. So people would just have to spend time powering down and moving it to HBD.
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HBD is just Hive blockchain debt and the haircut rule is designed to stop it taking on too much.
So when it is hit, there are mechanisms in place to get us down, such as no longer guaranteeing conversions (which is essentially stopping new HBD - or debt - being created).
Also during this time, people who select 50/50 payouts on author (and curator) rewards will receive liquid HIVE instead of HBD.
Something that will continue until the debt ratio drops below the haircut level.
But ultimately, I agree that we need more HBD.
The only way we are going to grow and compete with the stablecoin big boys is if we take on more debt (create more HBD) and provide liquidity for swaps via DEXs.
But we need to remain sustainable!
If we blow up like UST, then it will have all been for nothing.
Sustainability is key.
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