Is 20% APR for HBD too much ? (vote for what you think should be the new apr)

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Is 20% APR for HBD too much ? (vote for what you think should be the new apr)


Hello, interesting question right ? Hive add an hard time to get new users and set the hbd interest rate to 20% to bring new people but a lot of people now think a huge apr = scam and when hive is presented with 20% apr they think it's bullshit, This mean a lot of hive is issued each month over 330k last month ($115k HBD is worth about 333K HIVE at the current HIVE price of $0.345.at time of calculation)

This high apr brought a low amount of new active user on the chain but a bunch of inactive wallets that just hold some HBD to get some more HBD.


HIVE has been in a steady state of decline ever since the witnesses decided to raise the interest on HBD to 20%.

So the question is do we really need to give a scam image to the nocoiners, shouldn't we lower this apr to make it feel more safe for newcomers, and make hive just a bit less inflated.

In my opinion an apr of 5% or 10% would be great, 10% if you want to keep some HBD staker (since the best earning with your HP without delegation is something like 11-13%) staking can be an easy way to keep earning for inactive accounts. 5% is the best opition in my opinion still a better earning that a lot of stking in the defi land, seem way less scammy, would create 1/4 of the current monthly inflation. This solution would maybe make you earn a little less each month but will bring a way higher price of hive in the long term because it won't be inflated and new users will join hive. If the 5% is adotpted by the witnesses the best way to earn on hive will be HivePower, this solution will bring people to powerup a lot and this will bring more votes (you votes if you have HP) = more post rewards, having more post rewards or for more users could help promote as a write2earn place and in the very long term bring hive to wealthlier evolution.

Tell me your thoughs in comment and vote.

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  • 0%

  • 1-4%

  • 5%

  • 6-9%

  • 10%

  • 11%

  • 12%

  • 13%

  • 14%

  • 15%

  • 16%

  • 17%

  • 18%

  • 19%

  • 20%

Answer the question at dpoll.io.



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38 comments
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Voted for

  • 1-4%

20% APR is ridiculous indeed. we shall get rid of that ASAP. I vote for somewhere between 1 and 4%. note: read from some users that believe HIVE is to be promoted through its stablecoin, that HBD is a perfect stablecoin, I miss that point completely since HBD need HIVE to back it, therefore HBD cant grow in the number of units to e.g. compete with USDT, USDC and other stablecoins. so yes, we seem to be bale to keep HBD kinda at a $ value, HBD can only serve a niche in the stablecoin market. perhaps I am missing something?

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idk i neevr though about using HBD as major argument of promotion

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Voted for

  • 1-4%
  • 5%

explained in the post

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Users can see how the witnesses answered this question on the PeakD witness page.

https://peakd.com/me/witnesses

It appears that the witnesses can simply type in a number.

The number of witnesses that vote for exactly 20% is interesting. This implies that there are whales who want 20%. My guess is that witnesses have to vote 20% to get whale votes.

As for the answer to the question: To maintain a balance, the interest on HBD should be significantly lower than that paid on HIVE.

Since interest is not inherently important to HBD, I would vote 0%. But I suspect that the public at large would prefer something like 10%.

!WINEX

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Vote what you think is the best (you can do multiple votes using dpoll), well maybe it's 20% atm but little after little let's change it

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Voted for

  • 10%

A bit higher than banks to still give hbd the edge when it comes to savings.

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Nice, and since HP can earn up to 12% user still can earn more using HP, !PIZZA

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Please remember that many countries have significant inflation and that any investment worth its salt has to make the real value of your money grow faster than this...

Here in South Africa, our inflation is often over 7% and our home loan repayments have interest rates of about 12% (increasing all the time as well). If HBD interest is less than either of these, I won't bother to do HBD savings and will try trading back and forth between liquid HIVE and HBD or just cash out my liquid rewards and invest them in another way...

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Yes but hive can't just payout tons of money to some poor country because they need money hive have to stay sustainable better have 5% than 0% because hive collapse

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I see there are people that think that the HP interest rate should be more than the HBD interest rate...

But HBD is a stablecoin that isn't supposed to change in value. It makes no sense to invest in it if you get no interest. HIVE/HP could go up significantly in value in the next Bull market, so it makes sense to accumulate a lot of it even with no interest on it at all.

Also, I don't think South Africa is a big player in HIVE, but in my communities (music, surfing) I see a lot more people from countries like Nigeria, South America and Asia than first world countries...

So the biggest whales want 20% as well as the small guys.

With that said, it doesn't matter what we want. It needs to be something that is sustainable and will help HIVE grow.

I assume the number of active accounts reducing has more to do with the price of HIVE dropping since November 2021, which has more to do with Bitcoin and all other cryptocurrencies suffering in the Bear market than the HBD interest rate?

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HBD help hive decreasing too because people jsut sell hive to buy hbd and jsut stake, this create new hbd and inflate the hive value, at least it seem logic. In the top of the highest value accoutn most of the accounts own a lot of HP not HBD so yes the 20% was more introduced for the resond told in the post.

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Yes, I notice that if you search the accounts with the biggest value... Very few seem to be saving HBD and making much use of the 20% interest rate, which I find strange.

20% is a large number... If you could save 5 times your annual living expense, you could live off HBD interest alone. This is a huge number, but for some people it might be the equivalent of selling your house and renting instead, and putting the value of your sold house into saved HBD to just live off (if you trusted the 20% to be that safe in the long term)... So yes it is a big number for a safe and stable investment instead of a risky one?

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too much hbd stake = hive price drop thats why hive whale don't stake a lot of hbd, since hbd create new hive if no one want the new hive hbd won't worth anything

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Thank you for all your replies and helping me learn!

I wonder if there are other things/levers that could be changed besides HBD interest rate that might help... Our default payout for posts is 50% staked HP and 50% liquid HBD - could changing that ratio help?

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Yes 75% HP/ 25% HBD could help i think

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Because it "seems" scammy isn't really a good basis for a decision. It's about the economic fundamentals. Hive's problem is one more of awareness than whatever the HBD interest rate happens to be.

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it's another argument to lower the hbd rate, hbd is maybe not the main probleme but keeping it to 20% might make hive not sustainable long term

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Voted for

  • 20%

I'm ready to vote for a lower APR if more HBD is added to savings.

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