I'm looking at this as an accountant, not from a crypto protocol angle.

To me it is simple. The total market cap of Hive plus HBD (based on Coin Gecko figures) is around $57 million, down from close to $200 million in 2021.

Excluding the HBD stabiliser, the DHF is currently funded to the tune of 2300 HBD per day (and was much higher).

That means that however the market cap changes due to HIVE price changes, we are draining $839,500 out of the value of the ecosystem every year. That's around 1.4%.

It may not sound like much, but it's cold hard cash. Unless the proposals it is paying are delivering fresh new market cap in the form of new Hivers buying tokens, it is not worth it. But most proposals have no business case, or a business case that is very woolly on the financial angle. I have seen very, very few indeed that create a revenue stream and offer to repay the investment.

Additionally, we are draining market cap out in the form of witness payments. That is necessary, because with no witness nodes then the claims of permanency disappear. If Hive shrinks, witnesses will give up so to a certain extent we have natural scaling. But again, it's cold hard cash being drained out, and for both witnesses and DHF proposals the vast majority is (understandably) extracted rather than re-invested.

So I support this proposal because at the rate we are losing market cap, things are not currently sustainable. It would be a shame if the awesome potential of Hive (which some people are continuing to develop without pulling DHF funds) was lost because a few people keep draining cash out rather than tightening their belts to match the reality.

The DHF should only fund core security work at this stage, anything else should be in the form of a securitised loan based on a very rigorously examined financial business case.