And that's where HBD bonds come into play. Let's say you need to lock 200 HBD for a year to drink one coffee a day.
HBD Bonds would open up all kinds of possibilities in terms of potential use cases. The HBD Daily-Coffee Bond is an interesting use-case, for sure. I'm not a coffee drinker, so maybe my caffeine fix would be via the HBD Daily-Coca-Cola Bond.
Moreover, when HBD is locked for a longer period, the entire ecosystem gains certainty that these funds will not be suddenly dumped on us.
This, imho, is the reason HBD Bonds are essential. We want folks to hold HBD, but we need a method for protecting against huge dumps. HBD Bonds will accomplish that and will do so in a way that is familiar to a huge number of experienced investors.
However, the real-life use cases, like your HBD Daily-Coffee Bond idea, may ultimately prove more valuable and more extensive. We won't know until we build out the capabilities.
Isn't the idea of HBD exactly the opposite of that? The idea of creating circular economies where people will USE HBD every day? As I remember, that was the main selling point of HBD...
HBD in circular economies is definitely a primary use case.
Investors staking HIVE is another use case. The power down protocol ensures against massive dumps.
However, investors staking HIVE actively lose part of their investment if they don’t either actively curate or use voting bots or a delegation pool.
HBD Bonds are more suited to the average investor. Especially those looking more for fixed returns rather than speculative returns. And, HBD Bonds fix the problem that 20% APY with no lock-up period puts the platform at potential risk of massive dumps.