Clarification on HBD 20% APR

Hey everyone,

I've been thinking about the 20% interest rate on HBD, and while I definitely appreciate the high returns, I can't really find much information on what justifies such a high percentage.

Most of the discussions I've found seem a bit outdated or don't really talk about the reasoning. From my perspective, it appears that maintaining such a high APR while keeping HBD stable to the dollar might be challenging without devaluing Hive itself.

Given that HBD can be converted to Hive with each HBD treated as $1 USD, it seems to me that Hive's dilution could be a potential issue. If HBD often needs to be converted back to Hive for trading, maintaining a high APR might have long-term consequences.

I might be missing some crucial points, and I'd love to learn more from the community. So, I hope I can freely ask these questions in Ask the Hive.

My main questions are:

• What was the reasoning behind the high APR when it was increased to 20% by witnesses?
• Why is the APR kept at this level today?
• Is there a clear consensus supporting the 20% APR, or are there significant arguments against it?

I sometimes feel like I'm walking on egg shells when I ask something that I fear some people might take as criticism (which is mostly ungrounded 😅), so I want to clarify that I'm not criticizing the current APR. I'm genuinely curious and want to learn more about the logic, as well as what goes into making such decisions.

Any answers to these questions would be greatly appreciated