It concerns me how much Hive changes. Abandoning the 10% rule in favor of a 30% rule makes me feel less confident in HBD. The ability to change the rules has proven too tempting for witnesses. Shortened power-down time, and they already increased the 10% limit by excluding the DHF. The Hive dollar is already half way to adding haircuts right now. It might be a good idea to get out of stables while things are down, and buy up Hive or Rune or whatever.
You are viewing a single comment's thread from:
Yea, I wonder if 30% is too high of a limit.
I remember hearing block trades talk about it on the Cryptomaniacs Podcast and it made sense back then but after this thing with Luna I'm not sure
Posted Using LeoFinance Beta
The haircut rule is about more than just limiting how much HBD gets created. Even more importantly, it limits how much Hive can be created, regardless of how much HBD exists.
With a 30% haircut rate, at most 30% more Hive can be created, regardless of Hive's price variations.
A 30% expansion of the supply of Hive wouldn't crush the price (if you think about it, Hive was designed with a base initial inflation rate of around 8%).
The haircut rule is an extremely powerful protection against a death spiral like the one that happened on LUNA and 30% is still probably overly conservative, but I think it is best to play on the safe side of such things.
Ah, it makes sense again!
Thanks for the explanation.
Posted Using LeoFinance Beta
Can adjust it every (or every other) hard fork if needed. Work our way up the scale.
Posted Using LeoFinance Beta
The last weeks happenings have made me less confident about a 20-30% haircut
So you feel that Hive got it all right the first time and should not adapt?
I find this a highly unlikely scenario.
Posted Using LeoFinance Beta