Should be not use the HBD pump to supercharge the fund in the bull years and we can drain the extra funds we have saved in the bear years to keep development going.
Should be not use the HBD pump to supercharge the fund in the bull years and we can drain the extra funds we have saved in the bear years to keep development going.
Ah, interesting question. I would say that comes with a lot of assumptions though, and possibly a misunderstanding of the history of HBD (and formerly SBD).
First, HBD has pretty good mechanisms to get $1 of value out of 1 token. So when the peg is broken the opposite way, it's usually brought back to $1 fairly quickly. With this knowledge, we can probably assume that proposal funding will always pay out at least what they're asking for to fund it.
Second, in a bear market, the price of HIVE can get pretty low. I haven't done the calculations, but we know it's gotten about 10X less than the current price right now, and if we factor in worst case scenarios, then in a bear market we'll need to not only have over 10x the HIVE in the DHF to make up for it, but we also need to factor in the opportunity cost that was lost in the dapps that never were because they were pushed out.
I'm not saying this is a likely scenario, as there are a lot of factors, I'm just saying it's not as cut and dry as it's being laid out.
Personally I don't like HBD and think it should go. The inflation hangover from HBD printing during bull years and the conversion mechanism on a collapsing price is savage. SBD conversions created 2.5x the nominal steem inflation at the peak of the last collapse, which IMO pushed steem much further down then it would otherwise have gone. It's a vicious cycle as the lower it falls the more of the primary token has to be created for conversion, and gets dumped on the market.
(https://steemit.com/utopian-io/@lostmine27/the-current-actual-inflation-rate-of-steem-is-quite-different-from-the-design-1545151936259 ).
I see. I gotta say that having it as a "stable" way for funding proposals, and also having the exchange listings that give us these pumps sure is a great thing, this is definitely something to consider.
I think a layer 2 peg would be much more manageable, and prob better suited for any business that wanted to use the HIVE blockchain, but it's a tough call for me to say it should stay or go. Thanks for the insight.
As a content producer (and investor) I love the pumps HBD brings about; but hard to know if its in the long term interest. Also hard to know if it really made any difference to the price (cant isolate all other variables). Watching the next few days with interest to see if the stabilizer fund can kill the HBD pump (and kick off a Hive pump). Volumes don't seem enough but you never know.
We could just rename it HPC (Hive Pump Coin) and be done with it