RE: Death Spiral

over 2 years ago

You are viewing a single comment's thread:

Here's another attempt at describing a death spiral that may help (I just read that one, before reading this one): https://hive.blog/hive-167922/@lordbutterfly/luna-ust-shitshow-you-should-probably-avoid-buying-the-dip

The good news is, Hive community has long been aware of the potential threat of a death spiral and therefore there are strong safeguards to prevent it.

0.000

2 comments

@blitzzzz 75

over 2 years ago

I've been having this discussion with quite a few others on HIVE.
What exactly are the safeguards that HIVE has?
Is it the fact that HBD is limited to 10% of HIVE?

Could you point me to an article if possible? Thanks! 😊

0.000

@blocktrades 80

over 2 years ago (Edited)

Is it the fact that HBD is limited to 10% of HIVE?

Yes, this is the big one. Currently the proposal is to increase it to 30% with the next hard fork, but that's still a very conservative value.

Could you point me to an article if possible?

This is a good starting point, and I've added some comments to attempt to clarify the key protection:
https://hive.blog/hive-167922/@taskmaster4450/hbd-defenses-how-hbd-is-different-from-ust

0.000