A Question For The Blockchain Regarding HBD Printing

We all know that HBD supply is something we lack in the Hive ecosystem, we complain of low utilization of Hive and HBD due to our small community population, but lets try and imagine a sudden increase in the community and the Hive and HBD assets start being utilized and the demand increases, how do we make sure that HBD supply increases. I once heard that institutional investors can’t buy huge amount of HBD because the HBD supply is low, the supply is about 30 Million HBD. You see, it’s kind of low, very low, this is a value that a stablecoin trades on an exchange. So this means we need more HBD, that can help accommodate a lot of people when they get here.

Hive is a decentralized technology and ecosystem, a CEO can’t go and press the HBD printing button and have the HBD printing out of thin air without some explanation or reasons backing the printing of HBD. HBD can be printed in so many means, we have the Author reward means and the HBD savings means.

The Author reward means is when authors create contents and they get their rewards in HBD through the upvotes they get. When you create a content, and a curator curates your content, your earnings come as both HBD/HP(Hive power), the blockchain rewards you in HBD, this HBD is generated from the blockchain, in this case we will say, this HBD got printed by the blockchain because a person with HP(Hive power as a result of Hive staking) upvoted you and that blockchain is rewarding both parties for participating on the blockchain, hence the HBD printing.

The other means is the HBD savings, when you place your HBD in savings, the blockchain rewards you with a 20% APR interest, this means the blockchain is also printing some HBD at a 20% APR rate per account that places their HBD in savings. So if we have 30 Million HBD in supply and we want to place all that in HBD savings, hypothetically, we are going to make about $6+ Million HBD in a year at 20% APR. That is extremely small, so does it mean that we are not ready for huge adoption?

While thinking out loud I remembered that we also have the option of converting our Hive to HBD through the blockchain conversion means, this way we are letting the blockchain help us convert Hive to HBD and this process takes about 3 days to execute. The process is done this way, if you are converting Hive to HBD, the blockchain will burn Hive and print HBD, if you are converting HBD to Hive, it will burn HBD and print Hive. This process takes 3 days and doesn’t happen instantly unlike other projects that happen instantly. Can’t we count this as one of the most effective and healthy ways of increasing the HBD supply, or rather one of the best ways of printing HBD?

If more people wanted more HBD all they have to do is buy some Hive in the open market and convert it to HBD through the blockchain, it will help reduce the Hive supply, increase the Hive value and increase the HBD supply also. I don’t know how many millions of Hive the Hive blockchain prints yearly through author and curator rewards, but imagine about 30 Million of Hive is being converted to HBD every year. That will be 30 Million worth of Hive supply burnt, increasing the value of Hive and remember, the higher the value of Hive, the less hive you will need go burn.

Let me explain

Today Hive is worth $0.48, to burn $10 worth of Hive to get $10 HBD you will need to burn 20 Hive to get $10 worth of HBD. If the value of Hive increases to 1 Hive = $5, if you want to burn $10 worth of Hive, you will need to burn 2 Hive, you see how the quantity of burnt Hive reduced as the value increased. So buying more Hive increases the value of Hive, burning this Hive to print HBD reduces the supply, creating a beautiful means of HBD printing. Once again, the Hive blockchain is an undervalued gem.

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