@engrave Thank you for taking the topic seriously, encouraging me for writing an article and joining the conversation.

We do not print HBD to reward any activity; we do it to slowly increase the supply, which is crucial for it to become the real stable coin. And by slowly, I mean slowly. It's just $1.5 M yearly. We spent more from DHF, not even talking about author/curation rewards.

I propose that we view HBD interest rates as a reward for providing a service. We are distributing $1.5 million $ annually without any return. There are numerous strategies to increase supply, and I believe that giving away such a substantial sum to passive actors is one of the least effective methods.

Let's compare our approach with other stablecoins. For instance, does USDT offer any interest rate? On nexo.com, you can lend your USDT at approximately 10%, which can be seen as a simplified interest rate. However, this involves considerable risk: you need to own USDT and lend it through a third-party platform. In contrast, we maintain a 20% interest rate without leveraging these funds at all.

The fact we spend more money on DHF is not an argument to disregarding 1.5 million dollars I deeply believe we can use it very effectively elsewhere.

That's not exactly true, as investing in HBD poses a risk. It is loosely pegged to USD with HIVE as the backing asset. In some circumstances, you won't be able to convert it back to HIVE to receive USD equivalent. So, after all, you might have a loss.

I agree on that point. At the same time I believe that owning HBD poses less risk then owning HP, that is why I believe interest rates on HBD should be accordingly smaller.

That's only your opinion, I see it differently. Although I am not a top 20 witness, I can say that my motivation to keep it at 20% is that the amount of HBD in circulation is extremely small and not enough to become a significant and recognizable stablecoin in the industry. We need to print a lot of HBD stably to make it better. Our current circulation amount is prone to market manipulations.

I put it to harshly. I am sorry for that. It was an acapit I wanted to calm down concerned readers.

That's most likely not true. There's no sign it might have been connected at all. We are printing even more as a posting rewards and spending a lot from DHF, which generates a lot more sell pressure than savings APR, which, in fact, mostly stays in the savings.

1.5 million worth of additional HBD is a potential additional supply. Even if the current price drop is not related we are adding to the inflation in the future. ( Let's not make FED mistakes :) )
Between lines of your message I read that you want to promote and create our stable coin to compete with other networks. I believe it to benefit us. At the same time I believe the approach we take, high interest rates, is not the way.

If you are still interested in my points, I can prepare another article where I compare our stable coin with competitors and do my best to find our and theirs strong sides, weak points and a way to use them. I understand how hard it may be.