RE: Finding out how does HBD interest work by reviewing code

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Interest is out of thin air. However, if the price of HIVE increases over time, which one would normally expect, then HBD has a negative net effect on inflation (it takes more HIVE to create $1 worth of HBD then is returned by converting it, later, at a higher HIVE price). The interest would partially offset that reduced inflation, but likely less than completely.