It only puts a demand strain on hive when the price of HBD goes below one dollar. The defective part of HBD is that when the opposite occurs there is no mechanism in the other direction to offset the negative effects.
The way this proposal is setup effectively creates demand for Hive on the internal market and also opportunities for savy traders to arbitrage the price of HBD between the internal market and the exchanges (when it is overvalued).
In order for traders to profit Hive will need to be purshased on the exchanges and then traded for cheap HBD on the internal market. Since the hive obtained by the hbd stabilizer account is sent immediately back to the DAO the cost for the stakeholders is practically zero with the added benefit that it reduces the supply of Hive on the market.
It only puts a demand strain on hive when the price of HBD goes below one dollar. The defective part of HBD is that when the opposite occurs there is no mechanism in the other direction to offset the negative effects.
The way this proposal is setup effectively creates demand for Hive on the internal market and also opportunities for savy traders to arbitrage the price of HBD between the internal market and the exchanges (when it is overvalued).
In order for traders to profit Hive will need to be purshased on the exchanges and then traded for cheap HBD on the internal market. Since the hive obtained by the hbd stabilizer account is sent immediately back to the DAO the cost for the stakeholders is practically zero with the added benefit that it reduces the supply of Hive on the market.