Readjusting my Witness Votes...
I don't know if you have noticed but the APR of HBD in savings today is 19%.
This means that many of consensus witnesses have decided to lower this parameter within their node. This has made me review my voting list and make sure that everyone I voted for has a minimum of 15% in their APR selection...
Sorry for the rest, I don't understand the criteria by which some witnesses believe that a lower APR of 15% is better than an APR of 20% nowadays, so my decision is to vote only for the witness that give me the highest APR.
I know that I am an "insect" among whales but, at least, I make use of my voting power.
@toofasteddie
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Every vote counts. And yours is not a small one, Eddie. 😉
You are doing a great job dear friend
That a good job keep going 👍
Keep doing the great work
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I think it makes sense and I also made some changes to my own witness votes.
The 20% was to attract interest from outside investors, and it was kind of successful
The curve has flattened, and there's no marketing around it any more.
And what's more important, we're getting close to the debt limit. We just cannot sustain that growth of HBD supply, as long as HIVE price doesn't improve. We're already risking a HBD depeg if HIVE drops to somewhere around $0.20 now.
For these reasons, me and a lot of other witnesses have decided that the APR should slowly go down.
Thanks for your explanation... Just for my understanding, what's the debt limit? and...do you consider 8% of debt ratio a value which is indicating a problem here?
HBD is backed by HIVE. The debt limit prevents us from printing too much HBD, which would lead to a LUNA like death spiral.
I actually remembered older numbers, the last hard fork changed the percentages.
When the total amount of HBD in circulation exceeds 20% of HIVE market cap, the blockchain will stop printing HBD for rewards. At 30% and above, it won't honor the $1 peg with conversions any more.
Debt ratio is at 8%...30% is very far away still
True, the situation is way less dire than I thought. If we could get it marketed again it might make sense to keep it this high.
Do any witnesses currently pay out any of the net profits to the node in a way such as taking the profits adding to the LPS and providing a distribution if a user votes for the witness and delegates at least x HP? I was thinking of taking 90% of the net profit forming a bunch of lp positions on behalf of the people voting my witness node to be made yet and if they all delegated 10 HP for are curator or more they would receive pro rata distributions from the LP once it is large enough to distribute as well as 90% of any curation votes from the curator.
What about offering derivatives as a way of hedging against things like that with private transactions for swaps, forwards, futures, options etc on hive and hbd between people who want to take the other side of that bet for a premium?