Since HBD is pegged to dollars, if Hive mooned to $10, then that would reduce the relative value of HBD, not jack it up to $10. In that circumstance, the economic value of the DAO would be dramatically reduced after converting the Hive tokens in it to HBD at current prices.
If the conversion is made after the bull run, we'd end up with massive amounts of HBD, though.
Hive is being converted to HBD slowly over a years period apparently.
My understanding is that if it is converted prior to the price of Hive rising, it will cause less inflation.
I mean I guess. If Hive gets sold for HBD on the internal market... and then the price of Hive does up and those HBD get destroyed for a dollar's worth of Hive... there will be less Hive coming out than went in.