High APR of HBD getting into circulation is the primary cause. In my opinion, APR of HBD should be reduced to 0%. No need to pay interest on HBD savings to users. There should be a fixed percentage of HBD generated from author/curation reward that goes to the funding activities DHF. Also there is no need for ~3% interest paid out just for holding hive as HP. Users should only get rewarded for active participation in the community, no free lunch. Hive burned as a result of the daily does of spam content "Burn Post" and "Burn Comments" as expected is very much insignificant. These spam posts are doing more harm to the community by getting hefty upvotes by the whales, whales rewarding themselves in the form of curation rewards, and these posts often result in the top voted posts every now and then. This is bad for the community and bad for the SEO.
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Reducing HBD saving APR to 0% could make large holders convert back to hive at this price point and make the situation even worse abit temporarily assuming the price recovers at all.
The HP interest is up for debate really, on one hand it lets people hold and gains something without having to play the curation game or set up curations trails because noone has time to curate and finding good stuff to read is difficult.
on the other hand you could just get rid of it and then people will either.. be find with it or actually set up said curation trails and auto votes. or delegate to a curation group.
Personally I wouldn't miss the 3% HP inflation. bundle it back into post rewards etc and simplify the system.
The burn posts are insignificant compared to the amount of hive produced but it does do something. Honestly it hurts noone as if the whales who voted on those posts couldn't anymore then they probably just won't vote.. They vote to burn because the see most content on hive as not worth voting and would rather remove those potential rewards from hive altogether.
I'm a hive witness supporting the blockchain please consider voting for me.
The longer the APR stays above 0% the worse the matters will get.
If this ever happens then why would anyone want to buy HBD ever. US treasuries pay way more interest and are basically risk free.