You are viewing a single comment's thread from:

RE: How to PRINT MONEY with HIVE and HBD

in LeoFinance2 months ago

Why is there a 5% fee? Where is that 5% fee going?


The 5% fee is burned. It exists in order to ensure that some of the profit of overpriced HBD goes to Hive stakeholders as a whole - similar to a share buyback scheme in the stock market.

with the problem a stablecoin with 5% fee is more expensive as Paypal :P

0,1-0,0.05% would be enough. Special for larger scales. 100k into HBD = 5k fees? lol i would stay in tether.

The fee is for executing the collateralized convert contract, which is not something regular users should do. There is no fee for using or buying HBD, or even the regular convert contract (HBD to Hive).

the problem is, the game to generate HBD is not on demand.

The only reason to have a stablecoin is " on demand".

5% fee does not get in the way of that. Usage and issuance of a stablecoin are completely separate concerns.

I would not say the 5% are insurance. If the time horizon for avg price goes bigger the fee becomes useless.

The fee is supposed to introduce a little friction into the convert process, so that it is a lot harder to abuse this feature.

I don't like it too. Burn or not it doesn't make HBD scaleable. 100