When you buy HBD you are guaranteed to receive one US dollar's worth of Hive from the blockchain 3.5 days after you initiate a conversion as long as the debt ratio of HBD against the virtual supply is equal to or less than 10%.

When you say "initiate a conversion", what exactly do you mean? Do you mean sell HBD for HIve?

Also what is a virtual supply?

I am not sure what improvement(s) your proposal introduces to the current economics of HBD.

The improvement comes from stopping things like HBD stabiliser fund and various people trying to drive the price down when it goes up. This way devs whom claim to want a stable HBD price in order to plan site improvements etc. can have that, and then the rest of us whom want a high HBD price can also benefit from that.

HBD already acts as a derivative

If that really was the case, you wouldn't have people actively trying to drive the price down.

That's a really interesting idea! I don't know much about derivatives or about the mechanism that stable coins use, but I hope this idea gains some traction.

Me too! I doubt it though. Good ideas tend to die around here.

Cg