The key to eliminating excess inflation in Hive will be having the @hbdstabiliser or other worker accounts convert HBD at low prices - and returning the profit to the DAO.
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The key to eliminating excess inflation in Hive will be having the @hbdstabiliser or other worker accounts convert HBD at low prices - and returning the profit to the DAO.
Posted via D.Buzz
The cause of excess inflation in Hive is the bias for conversions during bear markets. This will still happen - but having the profit returned to the DAO should greatly reduce inflation compared to private converters alone, who release the full amounts onto the market.
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I agree with you @demotruk
First time I hear about @hbdstabiliser, can you tell me more about it? (and how your suggestion will change it if happened...)
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https://hive.blog/hbd/@smooth/request-for-comments-hbd-stabilization-dhf-proposal
My suggested change is something I believe is planned anyway, to incorporate the same functionality which @sbdpotato did in the past. By converting HBD at prices below $1 and then using that Hive to buy HBD, the DAO will remove HBD from the ecosystem, bringing the price back closer to $1 when it is below. Unlike with private traders, the profits will be returned to the DAO, so it will result in less inflation than if only private traders perform the conversion (as they are likely to eventually sell and release all the hive onto the market).
Ideally we should have a system of low trust worker accounts that can only perform a limited set of transactions, and transfer to a whitelist of accounts, so that they can be trusted with larger amounts of Hive at a time to perform at a large scale.
I agree... The proposal itself is good as is though, thanks for the link!
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