My opinion on the case of 20% APR on HBD

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Introduction

The Hive ecosystem is a decentralized and highly scalable blockchain network that supports various applications and use cases. A crucial component of this ecosystem is the Hive Backed Dollar (HBD), a stablecoin pegged to the USD.

In recent times, there has been a debate within the Hive community about the Annual Percentage Rate (APR) on HBD. Some argue for lowering it, while others, like myself, believe that maintaining a 20% APR on HBD is beneficial for the Hive ecosystem. In this post, I will outline the reasons for my stance and address some common counterarguments.

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Image created by @doze

Attracting More Investors

A higher APR on HBD, such as 20%, is an attractive proposition for investors. It provides a way to earn a significant return on investment, which can lead to an influx of new investors into the Hive ecosystem.

https://twitter.com/hiro_hive/status/1653824442768695302

As I mentioned in my Twitter thread, a thriving community, innovative tokenomics, and a solid crypto foundation make Hive a potential candidate for substantial growth. Maintaining a 20% APR on HBD is one way to capitalize on this potential and attract more investors.

Counterargument: Does a 20% APR Make Hive Look Scammy?

One common criticism against a 20% APR on HBD is that it makes Hive appear scammy. However, I believe this argument does not hold water. For instance, HEX, despite its unsustainable and too-good-to-be-true nature, still attracts a significant number of users.

The key is to provide value and build trust with the community, and the Hive ecosystem has been successful in doing so. A 20% APR on HBD is a way to reward users and incentivize participation in the ecosystem, not a scammy tactic to lure in unsuspecting investors. It's Hive > Hex.

The Role of HBD and HIVE in the Ecosystem

It is important to understand the role of HBD and HIVE in the Hive ecosystem. HBD is a stablecoin, providing stability and acting as a medium of exchange. HIVE, on the other hand, is primarily used to create resource credits, enabling free transactions on the Hive blockchain. While HBD is backed by HIVE, every HBD transaction requires HIVE Power (HP) somewhere, making them interdependent. Maintaining a 20% APR on HBD not only incentivizes investment in HBD but also indirectly supports the value and utility of HIVE.

Conclusion

The Hive ecosystem is a dynamic and evolving space with a lot of potentials. Maintaining a 20% APR on HBD is one way to attract more investors and support the ongoing growth and development of the Hive ecosystem.

While there are valid concerns about the perception of a high APR, it is crucial to consider the broader context and the overall benefits it brings to the Hive ecosystem. As a supporter of this approach, I have adjusted my witness votes accordingly in favor of a 20% APR on HBD. I encourage others in the community to consider the arguments presented here and participate in the ongoing discussion.

Posted Using LeoFinance Alpha

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21 comments
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I agree to keep the rate at 20 percent because this way it attracts investors, on the other hand if they lower the rate this could affect the price of Hive, and investors who have Hbd in savings would leave Hive, cheers.

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Definitely, 20% APR on HBD is a game changer. The reason I am adjusting and looking to whom witnesses I should vote for

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I am also going to adjust my vote for the Witnesses.

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Who is @hive-data?

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@hive-data is a person who love to promote hive on other social media platforms.

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Okay. I'm actually 99% sure I know this individual. Good guy. No problems there and he's free to think however he wants.

The post reads and looks like it's coming from some kind of "official source."

Combining branding that represents many with a personal opinion could potentially mislead outsiders and even some people here into thinking this is more than just an opinion.

I'm sure his intentions are pure and this isn't a case of intentional brandjacking but I still wanted to point it out.

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Good day, my good friend @nonameslefttouse.

Just want to answer your concern

The post reads and looks like it's coming from some kind of "official source."

It's not my intention to make it look like from "official source" by the way, and as I have mentioned in the introduction that The Hive ecosystem is a decentralized and highly scalable blockchain network that supports various applications and use cases.

A little bit of background of what happened in the past, I was doing the daily data report using Twitter API developer but somehow my daddy Elon Musk decided to kill the program that we made, that is how our name @hive-data originated.

Maybe you are right, I will try to post my opinion on @hiro-hive instead of here. By the way, I rarely do make an opinion post but I guess I must be careful. Good day to you sir

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(Edited)

As an example, look at how many times people mistakenly believe Hive Watchers is some kind of an official standards council.

Then watch how much more energy people put into disagreeing with the opinions of Hive Watchers when compared to others who show clear signs of being individuals. People come from far and wide, not even involved in the case. Much of that stems from the feeling of being misrepresented. Those uproars and much of the confusion would be less likely to occur if Hive wasn't in the name.

I asked who's behind this account because I thought it would save me some time but eventually did my own research and found out it was you before this confirmation.

Got my answer before you answered. Have a good one!

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Lowering the APR will not do good to hive ecosystem. Maintaining it at 20% will attract more investors and stick the old investors to keep their money in HBD.

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For me the 20% APR is fine, lowering it would be to lose investors and new ones to enter. I also feel that this would demotivate the community; besides we are well above the rates offered by banks and that makes it attractive.
On the other hand we are in #hive because it gives us that freedom of expression and helps us grow.

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