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RE: Pretend the HBD haircut already happened. What would you do? A Cry to witnesses, holders and Hive full-time employees

in Ecency • 16 days ago

Firstly, thanks for taking the time to write all this! It means a lot for everyone who cares about HIVE, and I know that it means a lot to you too... If not, you will not dedicate so much time to it! 🙏

I will just share a couple of thoughts regarding your observations...

This is why the “23M HBD” number is dangerous when people treat it like real available wealth while in reality it is a label.

This 23M HBD fund is equal to 23M VC funds on some other chains... DHF is our VC fund, or even worse... And if we see it like that, with 25M Hive marketcap, we have over 50% locked funds waiting to be unlocked... I don't know for others, but when I see that kind of stats on other crypto, I don't invest in the token...

The DHF may very possible have delayed our fall, it may very well have been the reason why we were more valuable than Steem for so long, but it also does not mean that it can not push us below them.

Honestly, DHF is one of the biggest (financial) differences between them (STEEM) and us... Maybe it was our advantage when we were going up, but it can be our disadvantage when we are going down... I wouldn't say that we did worse than the legacy chain regarding development or community, but we definitely did worse regarding financial (ir)responsibility... Ironically, our biggest fear was that JS would dump his tokens and kill the price, and we are doing something similar to ourselves atm...

Stake-weighted governance means stake-weighted responsibility
I know that despite my monthly purchases and power ups my vote barely matters and that is also part of the point, all I have are my words. Hive is stake-weighted governance. If a few large stakeholders support a proposal, it can live, particularly one witness that particularly contribute to over 40% of the funding requirements.

There is a "small" mistake in design... Yes, you stake HIVE for governance, but you can use that stake to extract HBD on the other side... Not saying that everyone does it, but it allows one to "don't care" about the HIVE price/value, as extraction happens on the other side... The INCENTIVE of helping out HIVE to thrive isn't there anymore...

On the other side, if HIVE goes down even further, we could "print" new whales... Maybe that will help us to go out of this "loop"? Or it will make it even worse? I have a feeling we will see it soon...

16 days ago in Ecency by
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         14 days ago 

        but it allows one to "don't care" about the HIVE price/value, as extraction happens on the other side...

        I'm afraid that's exactly what has been happening in Hive since March 20, 2020.

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               16 days ago 

              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...

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