RE: Death Spiral
You are viewing a single comment's thread:
I honestly understand very little of what you wrote. Despite hanging out in LeoFinance, much of this stuff is still over my head. I'm glad people like you get it. I hope enough people who understand the situation can provide enough influence to protect Hive from anything similar.
!PIMP
0
0
0.000
You must be killin' it out here!
@dbooster just slapped you with 1.000 PIMP, @edicted.
You earned 1.000 PIMP for the strong hand.
They're getting a workout and slapped 1/2 possible people today.
Read about some PIMP Shit or Look for the PIMP District
Sometimes these things won't click until you come back to it from other angles over time.
Learning takes a lot of time and energy.
exactly
Posted Using LeoFinance Beta
Here's another attempt at describing a death spiral that may help (I just read that one, before reading this one): https://hive.blog/hive-167922/@lordbutterfly/luna-ust-shitshow-you-should-probably-avoid-buying-the-dip
The good news is, Hive community has long been aware of the potential threat of a death spiral and therefore there are strong safeguards to prevent it.
I've been having this discussion with quite a few others on HIVE.
What exactly are the safeguards that HIVE has?
Is it the fact that HBD is limited to 10% of HIVE?
Could you point me to an article if possible? Thanks! 😊
Yes, this is the big one. Currently the proposal is to increase it to 30% with the next hard fork, but that's still a very conservative value.
This is a good starting point, and I've added some comments to attempt to clarify the key protection:
https://hive.blog/hive-167922/@taskmaster4450/hbd-defenses-how-hbd-is-different-from-ust