"The value of hive will ultimately be determined by the applications built on the blockchain."
Actually more than just applications, the utility of Hive to the community is what will determine it's value, which is why applications matter. The interest rate on HBD of 20% made it facile for me to counter IRL inflation, which is higher than that IMHO. Cutting interest on HBD will, as I told Ausbitbank, eliminate my use of HBD to counter IRL inflation, and I will seek other options.
In some goods, inflation has reached >100% in the last year. I know, because I just bought some of them today. There are ways I can counter that inflation, such as doubling the hours I work, entering industries with higher markup than that, such as crack sales or manufacturing, and loaning money at higher rates. Some of those things I am willing to do, and others not so much. But holding HBD at 12% won't do me any good.
Thanks!