Hive Hard Fork 28: Inflation Reduction Details

Hard Fork 28 reduces Hive's inflation rate from ~7% annually (after the 2025 halving to ~9.5%) to a new ongoing rate of ~3% per year. This aligns with the long-term goal of tapering inflation toward 0% over ~13 years, making Hive scarcer and more sustainable without disrupting rewards immediately.

Key Mechanics:

• Block Rewards Split: Previously, ~9.5% of new Hive (post-halve) went to block producers (witnesses) via HBD interest. Now, 65% of those rewards are distributed to witnesses based on their performance (uptime, voting participation), while 35% goes to power-down voters—still at the ~3% yearly rate.
• Vesting Clawbacks: For power-downs (converting HP to liquid Hive), 14-day HBD loans are issued at a 20% APY (up from 15.5%). If not repaid within 14 days after the 5-day vesting cliff, the full loan + interest is deducted from vested HP, effectively clawing back ~3.5% of the total power-down amount to offset inflation.
• Rationale & Impact: This creates a "deflationary pressure" on liquid supply—~1% of total Hive/IHIVE supply recycled yearly via clawbacks—boosting real value for HP holders. It encourages efficient use (e.g., repay loans with curation/posting earnings) and reduces perpetual inflation. No direct hit to author/curator rewards; focus is on witness incentives and anti-spam.

For full tech specs, see the release notes you shared. If you power down often, plan repayments to minimize clawbacks!