Reverse-Conversions: Two Birds One Stone

over 3 years ago

Leo and Hive. Two paths, one way.

Looks like @palasatenea got the attention of @blocktrades with the whole HBD CDP collateral savings accounts minting machines scenario. You spelled @Khameelkazi wrong, friend :D so close, but no cigar. Perhaps I should take this account? It's up for grabs!

I can see it now, @blocktrades seeing @edicted pop up on his notifications and asking himself:

Ug, what's that shit-talking maniac spewing this time?!
Do I need to move in for damage control again?
Give it a break, bud!

Message received!

When it comes down to it I give @blocktrades a super hard time for no other reason other than they have a huge amount of influence over the network and they are accepting an absolutely Goliath responsibility around here.

By all accounts, everyone who I've talked to says @blocktrades is cool.

Truth be told I would be pretty devastated if @blocktrades left the network. Who else is ready to pick up where Steemit left off? I'm hearing crickets in my head right now. I think the network could still thrive in that situation but core development would likely grind to a halt for a while.

While everyone else gets down on the price of Hive, I see accounts that I don't trust powering-down/selling, while accounts I do trust are accumulating / FOMOing into LEO. My interpretations of these developments are exceedingly bullish for this network. The low token price is the cost of increased decentralization/trust. It's a good trade.

Truth is this bull run has put me on major tilt: winners tilt. This is when we win so much during a lucky streak that we're more prone to making very foolish decisions because that's just "free money" that we can do whatever we please with it. What could possibly go wrong?

In the context of poker this means entering hands that I normally would have folded and eventually getting wrecked when my luck turns around. Emotional tilt was unsurprisingly (but also surprisingly) my weakest trait when playing cards. To the point of being in denial that this was even happening in the first place; making it even worse.

Most people only consider tilt when it applies to losing. Losing is emotionally devastating when large sums of money are involved. No one considers that the emotional state we're in when we are riding high can be equally as bad (or even worse).

Be careful not to fall, Leo!

Get it? LEO? What a happy accident.

https://peakd.com/hive-167922/@palasatenea/leo-and-hive-two-paths-one-way

In any case @blocktrades gives a very valid, measured, and professional response. No surprises there.

Committing to a "solution" has a high overhead cost, especially when that "solution" is complex like CDP smart contracts. Who's to say it even works? Loading debt onto the network could easily backfire. It could add flaws in the code and create unknown attack vectors or other destabilizations.

Less is more

I think most would agree that a quick-fix simpler solution with less threat-vectors that solves more problems would be ideal in the interim. This is a solution that many other people have already suggested:

Reverse-Conversions

So rather than take all that time developing complex systems for collateralized debt positions and the voting mechanics to keep the network stable, we could just implement this quick-fix first two solve two different issues.

Issue #1

There is no way to create HBD when demand for stability is high. This could be solved by allowing users to convert Hive into HBD using the same 3.5 day average that it takes HBD to convert into Hive.

Issue #2

There is no way to convert the Steemit Inc ninjamine into HBD for the dev fund. This can be solved in the same way.

Problems

In the case of the ninjamine, I still believe that it should obviously be destroyed in good faith. Hive does not have the liquidity to support the ninjamine being dumped on the market (in any capacity) so there is no point in using those tokens for development, as they have no value. There's a reason why Ned sold them to JSun under the table. He would have dumped them otherwise. Might as well just continue funding the dev fund with 10% of our inflation, as that is actually a number that the network can sustain and not a Black Swan threat like the ninjamine.

Again, I think if we keep the ninjamine we should stop allocating 10% inflation to the dev pool and solely use the ninjamine "as intended". That 10% then could be allocated to the savings accounts for passive rewards (yada yada yada getting off track here).

On Track

There is one other way that Hive from the ninjamine can be converted into HBD, and that's with a buy wall on the internal market that's governed by a bot (smart-contract) that sells Hive for the correct dollar amount. This solution has two problems:

Problem #1

This buy wall is a honeypot for exploitation. The USD value of Hive is provided by witness feeds, giving witnesses a financial incentive to exploit the network by colluding to raise and lower the USD price of Hive (artificially via the oracle feed) for personal gain.

Problem #2

This buy wall undercuts the 10% debt haircut, rendering it completely inert. If the haircut were to go into effect, users would simply sell their HBD on the internal market, milking the ninjamine at full price, instead of converting it at a loss. Oops :(

Analysis

The only rational conclusion to be made here is that if @blocktrades truly intends to fund the DAO with the ninjamine, reverse-conversions of Hive to HBD must be implemented, or devs must accept funds in the form of Hive.

These reverse conversions could simply be applied to the entire network, so any account would be allowed to execute them; not just the @hive.fund account. Therefore, the problem of HBD not having a lid on the top-end would simply fix itself via this mechanic that we needed to implement anyway. Two birds, one stone.

Conclusions

Everyone has ideas, but the people who actually turn ideas into reality are a rare breed.

EASIER SAID THAN DONE!

People named Dan seem to be super important to this network.
I just realized my middle name is Daniel.
How embarrassing.

Perhaps middle name is good enough?

God is my judge.

That's what Daniel means.

Don't try to judge a Dan, or you shall be smited!

@dan
@theycallmedan
@blocktrades
@edicted

_{(Which of these tags does not belong? lol)}

THAT'S RIGHT BABY!

Dan is also synonymous with attaining mastery level in both Eastern martial arts and board-games like Go.

Go is superior to chess!

https://en.wikipedia.org/wiki/Go_ranks_and_ratings

Looks like I'm Intermediate Amateur (9 Kyu).

Not bad.

So when someone says they are a black belt, what they really mean is they are some level of Dan (10 separate levels of mastery).

Personally, I have a black belt in bullshitting.

Facts!

Totally 100% on topic

Executive function is overrated.

Finally:

@blocktrades, thanks for all your hard work and sacrifice. Who knows, maybe one day I'll sit at the big boy table with the rest of the Dan's.