I am not a top witness. But I did suggest what you are saying.
The idea of playing with HBD interest rate to manipulate the price of HIVE was one of my suggestions to the top witnesses but there was no discussion or interest in it frankly.
Ideally we would increase the HBD APR whenever the price of HIVE goes down and lower it whenever the price goes up. But lack of discussion involving top witnesses doesn't help. I guess they are not interested in this idea.
The point I'm making is, our witnesses are not going to do that. We are going to have a fixed interest rate no matter what. So we should have something that is a bit more sustainable.
I even suggested going higher than 20% couple of days ago when price dropped. My APR setting was 22% and in one point 25%.
I don't see a problem in having a higher APR rate for a short period of time to encourage more HIVE buying. But the problem is the lack of participation on this idea from the top witnesses.
For all I care I could set my APR to 30% for a month if it is going to help the price of HIVE. Participation in governance has been lacking and we can't expect growth without more participation in governance. Witnesses used to do more back in the day to not lose their votes. Now, you can be AFK for years and not lose your position.
Actually, I thought it through a little more.
Lets assume that we have now 30% apr and HIVE price is $0.18
There will be a huge incentive to out into HBD saving. Lets assume we do it with $1000 USD -> convert to HIVE (ideal) 5500 HIVE -> Convert to HBD (ideal) -> $1000 in HBD savings.
Now, in one year the HIVE price is $0.36. In HBD saving we will have $1300. If reduce HBD APR now to %15, many will withdraw.
$1300 HBD -> 3600 HIVE.
In this case we will have HIVE circulation reduction of 5500-3600 = 1900 HIVE.
So increasing HBD APR when HIVE price is low - leads to decrease HIVE in circulation.
But what witnesses are doing now?? They are doing in opposite. Now, people who put it under %20 APR and much higher HIVE price will unstake their HBD and convert to HIVE. Which will lead to increase HIVE in circulation.
WHY? Can someone explain me why witnesses are voting for lower APR now which will lead to HIGHER HIVE in circulation??
My first comment. Why not 100% then? Wouldn't that encourage way more people to save HBD?
You are creating value out of thin air. The entire Hive can collapse without offering an actual value.
About the higher HIVE in circulation:
https://peakd.com/hive-133987/@dalz/hive-inflation-for-july-2024-or-running-hot-for-a-second-months-in-a-row
again, why now? When the HIVE price is at its bottom?
Decrease APR when HIVE rise a lot, $1/2/5/10?
In this case decreasing APR will lead to decrease the HIVE in circulation.
Now it looks like witnesses are making it even worse by forcing converting 8M HBD in savings to HIVE at the price much lower they bought HBD. Which will make even more HIVE in circulation and increase inflation.
Why now?
I'm not against lower APR, but now??
It makes sense. The lower the HIVE price the higher HBD Apr should be.
So why your witness reduced APR to 15% now? Is it because HIVE price increased a lot? ($0.18 now)
The crypto space has been positive recently and I think we are about to see a massive bull run in entire crypto space.
I might increase my APR setting if the price starts to go down again.
Yeah the latter is a bit sad, I'd be interested in seeing some polls/questionnaires if people would actually buy more hive with their increased apr hbd earnings though.
I am sad that you guys don't talk, and I praise your temptation to have better communication! At least two witnesses coordinated this lowering maybe you are off the group that's it =p