you get 50% instant and 50% after 3 days as far I know. And 5% are not really competitive.
5% also is a really random number. There is no risk for the chain at all. There is a haircut rule in place. It doesn't matter someone prints 1000 bazillion HBD. It has no influence on inflation.
With this said, any other manipulation can also happen with other currency like BTC or Tether/ Busd to whatever. So why we make HBD less dynamic without any reason?
The only thing that could happen is a close to haircut converting thing, this is only a very low risk attack vector, that can only affect the chain with low market cap.
The goal is to get big, so we need to think big.
When you convert Hive to HBD, you get 50% of your Hive instantly converted to HBD at the current Hive price. The other 50% is held. Then after 3.5 days, you get back your Hive (not HBD), but how much you get back is determined by the median Hive price during those 3.5 days. So this is the actual price that is used for the conversion, not the current price at the moment you decide to convert. In my understanding, this prevents a kind of attack where someone might manipulate the price (e.g. do a short Hive pump in order to get more HBD) and then make a conversion at that moment. It would be easy to do this. But since the price is staggered over 3.5 days, you can't really manipulate the price like that.
I questioned the 5% conversion fee too, but it does seem to have its function, and the whole conversion operation is a starting point and it is intended that we keep improving upon it. You can read a more in-depth discussion here.
if the fee should be there for protection, I would be more in favor of a 7 days median price. last 3,5 days + future 3,5 days.
This makes manipulation super difficult and expensive. The 5% looks to me like a random number. Why not 3% or 1% or 0,3%?
1000$ = 50$ fee
10k = 500$ fee
100k = 5000$ fee
IMO this fee is not competitive with any other stable coin in crypto or regular fiat money.
No value here
Value = Benefit - cost.