To me the 10% of Hive market cap limit is indeed arbitrary and bad. No token or DeFi protocol on Ethereum, or any other DeFi blockchain, has such a cap.
If we removed that cap it would unlock the DeFi potential for Hive. DeFi and smart contracts are what we need to ensure we build a platform and not just an app (because Hive to me right now feels more like just a single purpose app)
No other blockchain has a debt instrument (except for Steem) like Hive does. That is the difference.
HBD could be a point of vulnerability in that it could allow someone to stack up on that token and then convert it during a down time in the price of Hive. If the price dropped to 1 cent, as an absurd example, then someone could convert their HBD into a crazy amount of Hive. Thus a few million HBD would open up the possibility to take over the chain.
The question is how unrealistic is that, especially if the activity keeps increasing substantially on Hive.
Posted Using LeoFinance Beta
Although the 10% cap limit is pretty conservative and was arbitrarily selected in the past, removing it can end up very, very bad for Hive during the bear market (printing a massive amount of Hive because of HBD conversions). I believe there is a common agreement among witnesses to increase it during the next hardfork.
There is no point to compare HBD to any other DeFi coin as none of them are debt based (AFAIK).
I concur. I say leave the cap for now.
As it was arbitrary it would be interesting to change it and see what happens over a few ups and downs of the market. Everything is very new, so experimenting without fully compromising would be a way to test how things go over a long period of time.