HBD is above $1, the 10% is good!
I supported the 10% APY since the beginning, but I was second guessing myself and thinking if that would not increase the supply too much and become another downward pressure on price. Luckily the high APY seems to be great for Hive.
HBD has been stable above $1 for a couple of hours, and even got above 1.03, with is a great sign! HBD is strong and the high yearly yields are not pushing price down, which was a primary concern!
Hive is not skyrocketing to the moon (yet), but I am relieve to see that even with a very high yield HBD can keep the peg of 1:1 dollar (sometimes a few percent up or down).
It is definitely too early and the market cap is way too small, so I think it has been attracting new investors to Hive, and that should be great long term.
Total amount of HBD being paid out via interest is very small, even at 10% interest rate. In fact, less is paid out now at 10% than when we were paying 3%, because now the HBD has to be in a savings account, and previously the entire supply of HBD was receiving 3% interest. But even if the entire supply of HBD was put into savings, it would still be a very small source of inflation for Hive versus other sources. So there's basically no chance the interest paymetns can negatively impact the price of Hive.