The dollar pegging mechanism cannot work like this. There is far too much spread and depth is far too low. Maybe we should make it a goal to get the number of dollars in existence down to 3,000,000 rather than 6,600,000 that are now.
- No more printing of dollars
- Maintain 0% interest rate for dollars ( good on you witnesses! )
- That means rewards in Hive and/or HP only.
- An extra floating premium of say 5% of HIVE for every conversion. So if you convert a hive dollar you get a $1.05 worth of Hive.
- Printing dollars only allowed when the amount of dollars reaches not below 10% but maybe 5% or 2%.
but its already profitable to convert HBD? premiums on conversion would just trigger unnecessary inflation...
but i agree with the rewards until HBD reaches dollar price...
No, it isn't because the amount of dollars in the supply exceed 10% of the value of the combined Hive and dollars market cap. So the price feed stays high at 27.1 cents, even as the real value of hives and dollars go down. This is by design. There must be nine times the value in Hive for every dollar for the mechanism. We got into this mess because the chain printed too many dollars and it continues to do so even now.
like right now i guess it isnt, but only since the price dropped below 0.27, and its first time this week that it dropped below conversion price, but guess how overjoyed i was when in the middle of the conversion process this week the price jumped to 0.49 while the conversion price was still at 0.20
i do use conversion regularely id say
also the 0.27 is calculated from the feed median price... just 3 days ago when the price was around 0.27 the trade volume was high again, after it was several days extremely low... the median is robuster than the average meaning spikes like the short time of 0.49 price will not raise the conversion price as much
and guess what while i replied to your message the median price dropped to 0.263
https://github.com/steemit/steem/blob/7ebe3f8bddf9e58c943618f55136db6330dd95a0/libraries/chain/database.cpp#L3260
@felixxx, I have made edits.
In the if block you indicated, the value should be calculated as 0.17 which sets the floor of the value, but has no effect if the value is higher than that before the block.
9 * 6,640,000 HBD / 346,000,000 HIVE = 0.17 HBD/HIVE
(https://www.hiveblockexplorer.com/)