HBD interest rate - Hive economics

in LeoFinancelast year

If we lower the interest rate, the market is going to collapse

This can be true.

I see interest rate as a tool for market control. And if we use it that way, we can push the market in the right direction.

This requires active participation in the governance by the users.

If you want a better Hive, participate in governance. Vote for active witnesses. Vote on DHF proposals that you think bring value. And vote on the return proposal if you don't think so.

All the problems that we have originates from the lack of participation in the governance voting. A top witness can literally be AFK for a year and their position won't change.

This is a huge problem.

20% or 15% doesn't matter really. It is just a number that can change at any moment.

Now go and participate in governance.

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What do you think then?
Do you think that due to the current market status we should lower the 20% interest?

I don't agree with a sudden drop. I believe any sudden change in economics can lower the confidence of the investors and users.

This came up months ago and I suggested to do a coordinated lowering like 1% per month or two months. Which needs announcements to let the community know beforehand.

Do I agree with lowering at all? Depends. We are spending 2 million dollars a year from DHF and we don't do any marketing. We could buy Steemit inc. back with this type of money.

The initial idea was to market HBD and get more users but we didn't do any of that. Because nobody cares.

I would agree with lowering the interest rate slowly because still nobody cares about marketing.

It doesn't matter though. It won't make any difference in the market. The market is going to go down anyways. If you don't grow, you decline.

I'd totally support changing it 1% a month

Fully agree with you but still I don't understand why lowering. Lack of marketing is the issue not the interest rate

What would you prefer? Run HBD up to the 30% debt limit as fast as possible? And then what? Keep it at 20% or lower it to 0% then?

I don't get your question, What I'm telling is that I don't see the problems of maintaining at 20% exactly now

I understand that you want to keep 20% for now.
My question is: when you would consider cutting the 20%.
One inflection point is when we reach the 30% HBD debt limit. You might have different ideas.

I would not wait till 30% debt limit, I would do something when reaching 15% maybe but according to https://www.hbdstats.com/, in one year we have passed from 4.75% to 7.15% which does not look so problematic...or am I wrong?

The governance on Hive is run by 2 or 3 whales, with few exceptions. I vote and speak my mind, but I also recognize it has little to no impact.

Whales have massive influence because most of the HP holders don't participate. On proposals we have 26% participation and 46% on witnesses based on the most voted one. There is a massive amount of HP not voting that could change the entire ranking.

They have to use the platform to use it and most don't anymore, so getting more participation is unlikely. Also, 46% participating in anything is actually pretty good if you compare to average participation in government elections around the world. The average human is quite complacent on most things.

Top 25 accounts are holding 42% of the all existing HP.
Is that the same participation you are referring to? Human participation is not the same as stake participation in terms of numbers and you can't compare them.

46% is low when you consider 25 accounts have 42%. I didn't check but we could probably fit 46% in the top 50.

Also, not all of these users are unique. Some have multiple accounts.

Sounds about right, so all the numbers we to know are almost untraceable?

That's one of the critical parts that's missing from Hive. I feel like you should only earn APR on hive if you've voted for at least 1 witness in the last 6 months or a year. Otherwise you lose the APR on hive powered up. An active part in governance is required.

Forced voting can result in a very bad outcome. Simple encouragement from the front-ends and wallets could massively help.

Technically that isn't forcing anything, just rewarding one for taking part in something they should be doing. It's an incentive.

There is a BEAR MARKET ... no matter what we do relative to that interest rate, until Bitcoin halves, a whole bunch of people are not going to be finding the crypto space. Hive has some exceptional things happening, but is not going to form an exception to the rule in 2023 unless it really takes off in Venezuela, no matter we do with HBD. 20 percent interest will look good NEXT YEAR to investors, but not now.

I have not voted on witnesses based on their stance on interest, but I will consider that now. I don't consider HBD at 20 percent interest "free candy" -- that's part of what you do to take care of ALL of the 11,000 people here who stay here and keep this thing alive, regardless of their HP size, through the devastation of the bear market. Hive gives all its users a fair shot at 20 percent interest, which has vastly outcompeted the drop of the bear. NEXT YEAR, when people are looking, that's the story. Mess with the interest, mess with the story that 11,000 of us have to tell.

Generating value out of thin air is not an easy task. If the price of HIVE drops to a certain point and we hit the haircut rule, it can result in a downward spiral and push down the price of both HIVE and HBD for months. This happened before and it can happen again although it is less likely this time.

The point I am making is that 20% is good and witnesses were the ones who made that decision in the first place. The same people who are talking about reducing the interest rate, are the same people who increased the APR from 0% to 20% without any external push.

I don't care personally as I think it is not going to make a difference other than reducing the inflation. We are spending so much from DHF that the inflation reduction from interest is not going change anything.

Here is the challenge, sir ... Hive just got discovered, and one of the things this laser-focused leader of an investment group said was, "They don't have a lot of users, but those there are making good passive income." He is ASKING Hivers to come tell the story that he does not know ... HOW do we want that story told as we continue to be discovered?

IN A BEAR, bigger-time investors are quite aware of our strengths and weaknesses as they make their investment places. That 20 percent is a STRENGTH.


Regardless of the change in the rate the market will continue to go down because Bitcoin is practically causing the domino effect in all of them.
I for one went to vote

I can some for the next vote.......



Independiente del cambio en la tasa el mercado seguirá en bajada porque el Bitcoin prácticamente es el causa el efecto dominó en todas
Yo por mi parte fui a votar

Me puede algunos para que la próxima votación.......


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Hi @mahdiyari, I just wanted to touch base with you to ask for a witness vote, I am a new witness and an active hiver, I am here for the long term, I own my hardware, hosted here in Adelaide. Thanks again mate