HBD savings will properly be reduced soon.
Alot of people have recently (yesterday) been talking about lowering the 20% APR of the HBD savings down to lower number more in-line with what you get from the HP staked + the curation rewards which is around 11-12 for most people who are actively curating on Hive.
I have had a Goal of getting 6K HBD in my savings account for the sole purpose of getting $100 dollars a month for doing absolutely nothing other than wait.
I did rapidly grow my HBD savings account to 4K almost 5K! Which have been giving me at least 80 HBD a month for a few months now. But I did also power down a stake of 10K HP to try and achieve this as fast as possible.
It was a good decision at the time and I still think it was a good decision but now things are changing and if HBD is going to get a Reduction, I would much rather have it stakes in HP than HBD. I will properly slowly put more into the HBD savings account again because I like it only takes 3 days to get Liquid compared to the 13 weeks for HP staked.
I have started to take all of my HBD out and it will be converted to Hive.
All 4K HBD will not staked, but a lot of it will.
I have missed having a high HP :p
Also, check out the posts I have reblog from gtg and deathwing. Both are witnesses and talk about these reductions.
Although I put my witness node APR at 16% I think that 12% is not bad at all. That is like 1% a month, nothing out there gives that kind of payout.
It is good that now HIVE and HBD is more balanced, the yield could be the same in both, but it will depend if the person thinks that HIVE will go up or down. I loved the 20% because I was expecting it to attract users. With HIVE going up strong and fast a 20% APR on HBD was ok, people would miss out on HIVE gains if they chose HBD, but when HIVE began going down it was obvious that HBD was the clear winner.
Now after HIVE has gone down that much I think that the lower interest rate is reasonable. HIVE may go down lower, but with HP you can get more HIVE, and if HIVE goes up then with thee HIVE APR users may even beat the HBD savings. That sounds fair to me.
Could the Apr also be changing with the way hive/HBD relate or does it have to be static?
Theoretically it could but I would rather choose a target and leave it untouched for long periods of time
People should not take APR stability for granted but also it shouldn't change often in my opinion
Ok. Very rightly said.
I feel while we try to attract people we should also consider the blockchain activities too.
What about hbd having staking ability to also encourage holding hbd?
What do you mean by staking? Wouldn't it be the same as saving? Both HBD and HIVE can be "staked" (power up for HIVE and savings for HBD)
I might have misunderstood what you meant
Maybe it's me
But what I meant us, giving hbd more utility within the chain. Such that it can be delegated and the release date can be extended so that it won't just be an outlet alone, but while it's been saved it's also adding to the chain activities. So much more utility can arise from that.
I am for lowering the APR aswell, but I think witness you decide the % because I don't know enough about how it would impact the ecosystem.
Holding HBD for trading will always be a hedge against hive though :D
Have you heard about Deathwings idea about taking some Authors rewards and put it into the staked HP APR for it to be more attracted?
Ah yes, I read that on his post but I mostly ignored it, it felt like just an optional footnote. If he wants that idea to be taken seriously he will need to make at least one full post dedicated to elaborate more about it.
Really??
I thought it seemed like one of the more interesting ideas on Hive in a while
It's not that it's not interesting, I really just didn't take it seriously as it was such a short elaboration.
Bow I read it again paying closer attention (it is still too short) and although it may be interesting initially I wouldn't be in favor of it just because we could tweak the rewards forever and we wouldn't find a magic number for it (or would we?), we are such a small community that I am afraid such changes are untraceable, seems like it would be hard to keep track of "is it working as intended or not?"
The APR is one of those numbers, but the difference is that it is designed to be "easily" changed through consensus instead of hardforks
So until we are bigger, with thousands more users and maybe billions of marker cap, that sounds like too much work for an unknown result
But again, I'd like to see a post going more in depth on that, that paragraph was too short
You are properly correct :p
I think the 10% change will be too big as a shift in the start, maybe start with 5% or 3% just to see what will happen.
20% Apr reducing is not sounding so nice to me because everyone benefited a lot from the HBD savings although it might be a good idea to control the rate at which money is being disbursed for doing nothing.
Anyways, What do i know ? Just an ordinary hivian.
You are right, It gave me some concerns too, but I also felt it would attract people, and that hive will go up. Those it attracted were mostly just dormant tho. Balancing both will do a lot, or what if HBD is given staking abilities too.
People did benefit from it, but did the ecosystem?
A more sustainable ecosystem is a better for all and just not 1 person ^^ :D
I had seen this coming a while back when I emptied up my hbd saving, now I m planning to refill it back thinking the thought had been killed. Thankfully I saw your post. Now is good time to consider a rethink. Thanks
Well.. I am only converting my HBD to Hive because of the low price of hive xD
If I can manange to convert all of my HBD to hive before the price is above 0.3 again, I made like 2-3k Hive xD
Very true hehe..
All the best
True man, I am considering it too...
The only reason I am doing it is because if I can convert at 0.3 or lower, I will have made 4-5k hive from that trade
What do you mean more specifically? 4-5k on which trade? From converting at a higer rate to hbd and then back to hive now?😎 thats awsm!
Ye, because I converted hive to hbd when hive was 0.34-0.35 ^^
oOOO, nice m8! That's a win! Bra!
btw m8, seems like there are still more witnesses for 20% :P to early to unstake from savings?
I know I know.
Nah, I was getting 80 Dollar a month, but since the Hive PRice is down, I can still make like 4-5K Hive just from trading HBD for Hive xD..
I can also convert it back into HBD when Hive increase in price again ;)
I just need it to stay low for the next 2 days :P
Yeah, good point!
It is still 20% at the moment, but it seems some witnesses are changing their % rates lower. It will be interesting to see how this pans out.
It is 20% right now. But Hive also dropped, so if I can convert it at these low prices, I have made like 4-5k from that trade xD
Nice work!
Ye pretty neat, if I manage to get it out :D
Yes this is goona change a lot of plans 🙂. Let's see what will happen but in my opinion it is gonna bhe between 12 to 15 % which is still a good thing in my opinion. I do have plans with the hbd let's see what will happen. 👍
Aha now your hp will be massive 🔥🔥👌👌🤗💐
Ye, we don't know yet and I will properly down the road put a bit into HBD again as a hedge if Hive drops like now xD
Was a good run, right? I'll miss the %20 APR, been compounding my interest there for around a year and was hoping to accumulate 6K HBD in there as well. You have no idea how much $100 dollars is worth in a 3rd world country.
Well, its not going to be removed though, just reduced xD
All it takes is to post more often and longer quality posts and the rewards will start to flow naturally :D
If HBD is reduced, we might see an uptick in HP staked = bigger rewards for Authors anyways :D
No matter the country, isn't it all just about money management to some degree?
It is about money managment, but when you have a country like Egypt in which $100 dollars is basically the monthly salary of the average employee, every dollar you make really makes a difference
I understand, so posting more often will possible lead to more revenue generated which will in turn help more financial ;)