RE: HBD Aftershock
You are viewing a single comment's thread:
The question is, if any technical or economic risks emerged as a result of continuous 20% APR. I don't see any. I agree with your assessment that when Hive price isn't moving upwards for a while it may seem as though HP isn't earning as much HBD. This may imply some kind of competition. However, regardless the ROI optics Strong Hive and HBD only benefit each other.
Given that there is no evidence of any imminent risk to the chain, community, or economics decreasing the APR wouldn't be a good idea. Because this will result in break in consistency, and creates uncertainty in HBD as savings investment.
I do believe 20% APR eventually would produce its results, but not until after next bitcoin ATH when profit takers look for stablecoin options.
GTG has set a target to gradually lower APR to 10%. That means 19% is only temporary.
But why should we be sitting and waiting with fingers crossed for forces beyond our control to maybe bring some people in? It's no wonder nobody has taken advantage of the 20% because you can't even google it. Literally nobody know about it.
Hell, googling 'Hive blockchain' brings up some OTHER Hive, with THIS hive logo combined:
Let alone the fact not even the slightest utterance of 20% APR. If you add that to the search, you only get blogs questioning the viability of it. Fab lol.
Whose responsibility even is it to let it be known to the world? Nobody's? But at the same time I keep hearing the idea that 20% was meant as a promotional deal...
Of course, it was a promotional thing.
Regular businesses want investors to buy their debt because that way, the profitable operations of the business can scale up.
I do not see how lazy-panda's 1M HBD in savings is beneficial to Hive network. Hive operations are financed by printing new HIVE.
Hive business grows when people post more transactions. The idea was to attract huge amount of new users, not a few fat sleeping accounts.
There is less mutual exclusion than you seem to imply. Yes, Hive business grows when people post more transactions. And the fat sleeping accounts are just the price you have to account with for that. We are really bad at marketing but that's not a good reason to give up on the few good ideas that have been implemented.
Absolutely, let's call it a negative correlation rather than mutual exclusion. I do not even think the sleeping accounts are a problem as of now. Most top HBD holders either have large HP or are known whale alts. The sentiment seems to go towards introducing the problem, though.
Being bad at pricing is more dangerous than being bad at marketing.
@theycallmedan makes a great point in CTT Podcast that once you can convince someone HBD is no scam, offering 12.5% APR generates the same level of enthusiasm (towards opening Hive account and using the network) as offering 20% APR. My only criticism is that same probably goes for offering 7% APR.
It is cool to make the users feel they can hold excess HBD beyond what they need during the next week/month. OTOH, do we seriously need them to park their life savings here atm? What's the benefit of that over a casual user?