RE: Signalling for 20% HBD interest

I'd like to mention my view here, and why I'm still voting for 7%. There are a few reasons for me being "conservative". HBD is a debt, and one way I like to view it is that it is like a bond – it provides current liquidity at the cost of future payment. Interest rates on a bond are typically represented by the risk (of default, or lessened payments) associated with said bond.

Do you think Hive is currently a risky ecosystem? Presently, I do not.

The choice rate is a magic number regardless, as there is not a scientific process to determine a correct number. It is hard to anchor it to anything other than to related projects, or to the backing itself, the USD. Other DeFi stablecoins we might compare to can have extraordinarily high risks. It cannot be a perfect comparison for interest rate because the fundamental systems are different, and thus so should be investor risk tolerance.

Compared to the USD, Series I Savings Bonds are currently at 7%. This in my mind is a good relative comparison for stability in USD. The average stock market rate of returns is also often quoted being between 7-10%, which is a good comparison for growth rate. So, I feel comfortable with my choice of magic number for now.

The second reason I haven’t changed is precisely because it is not necessary for all the witnesses to use the same number. Having different beliefs and presenting that in voting is a feature, we do not need all witnesses to tow the line to determine this number, since it takes the median. Better, it shows other projects and the community that the witnesses can have different opinions, which projects diversity and decentralization.

I’m perfectly happy with the rate being higher as a sort of promotional plan or marketing, and the ecosystem is certainly well equipped to absorb a higher debt presently. However, since we do not need all witnesses on board, and I have (at least in my own mind) good reasons to suggest a lower rate -- I am happy to be an out-voted counter-opinion.