I'm actually not 100% sure where the inflation for HBD comes from. I know the witnesses set the target, but I'm not really sure if this money appears out of nowhere or if it comes from somewhere else. Any help on that front would be appreciated.

i also strougled to understand this, and this was blocktrades answer to my comment:

The interest is generated from inflation.

The effect of any particular interest rate payment on total Hive virtual supply (the figure which includes both Hive and "HBD if converted to Hive) inflation rate would of course depend on amount of HBD held in savings at any given time (and whatever interest rate was currently being paid).

so if i understood it correctly it would be taken from the daily inflation. so it would be redistributed. I could be wrong, because i don't really understand how it all works :)

now if i am correct in my understanding that would be less inflation for HP? and if you have 15% APR on HBD saving would you still hold HP that could give you 15% if you are lucky with your votes?

But Dan also said that the % of interest is not set, so they don't know what it would be.