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6y
The initial mechanics were selected because they are very simple to implement, so the new functionality could be included in the upcoming hardfork. And 5% was chosen to be conservative: it should be sufficient to prevent any big swings in the HBD peg but decreases the chance for any gaming of the system.
After we've had a chance to observe how the new mechanism works, we can consider if further changes are necessary, including more complicated implementations.
RE: HBD still well above the peg.