but you can use that stake to extract HBD on the other side

That is an even scarier thought, that whales can buy HIVE and allow it to go down because they can keep fund themselves in HBD. It is a flaw that can only be solved by either responsible governance or a hardfork that somehow bakes in financial penalties for top witnesses and proposal recipients.

You have just made me realize that, in a PoS system, if stakers can stake the governance token but print a stablecoin then it is flawed because it totally corrupts the design of incetivizing and penalizing them for caring or not about the token they stake. They can stake and the stake can lose value, while they make it back by minting another token! A genius flaw!

The fact that the DHF does not cease funding after the haircut makes that an even worse governance and financial vulnerability, it is a flaw that is unique to us and may be used against us. Justin Sun at least had his stake in the governance currency. That did not make him manage the blockchain well, but at least penalized him by devaluating his stake. If Steem had a DHF like ours he could have used his stake to print a stablecoin, just like...