Yea, I wonder if 30% is too high of a limit.
I remember hearing block trades talk about it on the Cryptomaniacs Podcast and it made sense back then but after this thing with Luna I'm not sure
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The haircut rule is about more than just limiting how much HBD gets created. Even more importantly, it limits how much Hive can be created, regardless of how much HBD exists.
With a 30% haircut rate, at most 30% more Hive can be created, regardless of Hive's price variations.
A 30% expansion of the supply of Hive wouldn't crush the price (if you think about it, Hive was designed with a base initial inflation rate of around 8%).
The haircut rule is an extremely powerful protection against a death spiral like the one that happened on LUNA and 30% is still probably overly conservative, but I think it is best to play on the safe side of such things.
Ah, it makes sense again!
Thanks for the explanation.
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Can adjust it every (or every other) hard fork if needed. Work our way up the scale.
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