I'm temporarily favoring burning over hbd.funder because of the issue of excess HBD build up in the DHF leading to increased inflation. Fixed with the next hard fork.
You are viewing a single comment's thread from:
I'm temporarily favoring burning over hbd.funder because of the issue of excess HBD build up in the DHF leading to increased inflation. Fixed with the next hard fork.
What will change with the next HF regarding this?
HBD in the DHF won't count toward the money supply when calculating inflation, similar to how it currently doesn't count toward the debt ratio.
See this: https://gitlab.syncad.com/hive/hive/-/issues/741
There was a threat of an uncontrolled inflationary spiral where should the price drop significantly enough, the HBD in the DHF would become a larger portion of overall marketcap raising the inflation, which will effectively drop the price further, which will raise inflation etc... leading to massive printing of HIVE and effectively driving hive price to 0. Before the change (aka pre-hard fork, current situation), the only way to stop such spiral would be to make a proposal and burn a large portion of the DHF, which is capped at 1% per day, so it's not like we can quickly react to such an event, and also it would suck to have to burn funds