RE: HBD: 10% Debt Haircut is Too Low

I like the idea of CDP smart contracts, but now I'm confused.

How can you have a CDP smart contract stable coin which is also printed as a reward for posts? The printed HBDs will not be backed by any hive which is locked.

And that would bring us right back to where we are: massive HBD inflation during a bull run and then endless conversions at a lower price.

In order to solve the HBD problem we need to limit the amount printed during bull runs (or any time price moves up too sharply). And if HBD pumps above 1$ print a lot and sell them for hive that is burned forever, causing deflation for hive and a lower price closer to 1$ for HBD.

This last part can be easily done with a proposal where someone gets a lot of HBD and proves he is burning all of the hive he is buying.

On another note: simply removing the 10% cap for debt without CDPs is a terrible idea. We would have the same problem where a lot of HBDs get converted to hive but with much larger debt, and we'll have infinite inflation at that point. The death spiral will occur.