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RE: Hive Backed Dollars (HBD): Market Based Currency

HBD does not have a very important function for the Hive blockchain

At this point, you are right. The use cases are missing. That is something that everyone who is running a project needs to take a look at.

The circulating supply of HBD is very low, whereas the Hive supply is high.

This is true about HBD although I would not agree about HIVE. At the moment, yes there is a lot but since it is tied to RCs and operation on chain, if there is a significant growth in users, we are going to see that dry up very quickly. Just as some of the DApps who expect growth how they feel about that. Get a few Splinterlands going, especially one that has a lot of onchain activity outside Custom JSON and you will see a problem.

The HBD problem is fixed by offering more projects that create it. I have written about both Hive Bonds and Hive Certificates of Deposit. They would help to generate more HBD organically.

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I think Ragnarok has plans to solve this.

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It is going to be one of the applications/games that utilizes HBD. That is a great step although it is still a long way from going live.

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