Actually, I thought it through a little more.
Lets assume that we have now 30% apr and HIVE price is $0.18
There will be a huge incentive to out into HBD saving. Lets assume we do it with $1000 USD -> convert to HIVE (ideal) 5500 HIVE -> Convert to HBD (ideal) -> $1000 in HBD savings.
Now, in one year the HIVE price is $0.36. In HBD saving we will have $1300. If reduce HBD APR now to %15, many will withdraw.
$1300 HBD -> 3600 HIVE.
In this case we will have HIVE circulation reduction of 5500-3600 = 1900 HIVE.
So increasing HBD APR when HIVE price is low - leads to decrease HIVE in circulation.
But what witnesses are doing now?? They are doing in opposite. Now, people who put it under %20 APR and much higher HIVE price will unstake their HBD and convert to HIVE. Which will lead to increase HIVE in circulation.
WHY? Can someone explain me why witnesses are voting for lower APR now which will lead to HIGHER HIVE in circulation??
My first comment. Why not 100% then? Wouldn't that encourage way more people to save HBD?
You are creating value out of thin air. The entire Hive can collapse without offering an actual value.
About the higher HIVE in circulation:
https://peakd.com/hive-133987/@dalz/hive-inflation-for-july-2024-or-running-hot-for-a-second-months-in-a-row
again, why now? When the HIVE price is at its bottom?
Decrease APR when HIVE rise a lot, $1/2/5/10?
In this case decreasing APR will lead to decrease the HIVE in circulation.
Now it looks like witnesses are making it even worse by forcing converting 8M HBD in savings to HIVE at the price much lower they bought HBD. Which will make even more HIVE in circulation and increase inflation.
Why now?
I'm not against lower APR, but now??