Did Hive Find the Perfect Growth Incentivizer?

At the beginning of February, @smooth came forward with an idea which turned into a proposal.

The proposal was very interesting and was received positively, even though other attempts to stabilize the HBD were made in the past, largely unsuccessful.

At the beginning it created some controversy, because it drew funding from the development fund at the expense of other projects which were cut off, but this situation seems to have improved.

Unlike other attempts to stabilize HBD, @hbdstabilizer does it at no cost to the Hive ecosystem, other than this temporary disruption of the development funding. But this stabilizer either returns the funding entirely as it receives it, or even makes a profit, as you will see next.

When HBD price is outside the interval considered "stabile" in the stabilizer script, @hbdstabilizer makes profit for Hive Development Fund (HDF).

When HBD price is within the "stabile interval" (I believe it was set as 0.99-1.01), the funding from HDF is simply returned every time it is received.

Here's another benefit for Hive ecosystem: when the price of HBD is higher than the peg and needs stabilizing (like nowadays), the stabilizer sells HBD (to lower its price) and buys Hive, which it will send to DHF. This way a buy pressure for Hive is created.

Let's recap:

• stabilizes HBD
• no cost for Hive ecosystem
• profit for DHF, which turns into more development funds available, including for the stabilizer
• buy pressure for Hive

I only see benefits, and frankly didn't find any drawbacks, although I tried to. But if you know any, please do share. The funding issue for other projects was only temporary, and as far as I understand it, the more this runs the more profit it will make, the more funds will be available to fund various projects.

Yesterday @dalz published one of his famous stats posts. It is about @hbdstabilizer and how much funds it received and how much it sent back to DHF.

The report is a very revealing read. But I'll just share a few quotes from it:

[...] a total of 2.1 million HIVE was sent to the @hive.fund from the @hbdstabilizer account.

That means the stabilizer bought 2.1m Hive! That's a nice chunk in two months adding to the buy pressure.

At the moment of writing this there is 2.7 millions HBD in the fund, meaning a 27k HBD daily budget. A few month back this budget was less than a one million HBD. The @hive.fund has grown its available daily budget significantly in the last months, more than double, or almost triple.

The @hbdstabilizer has a big impact in this, but its not the only one, the slow conversion of ninja mine HIVE to HBD is happening with around 38k HIVE (20k HBD at current price) added from that as well, and the overall inflation. The increase in the HIVE price has also a part in this.

[...] there was almost 1.2 million more HBD added to the fund from the @hbdstabilizer. If we compare this with the 715k HBD received its almost a half a million difference in HBD or 70% more.(*)

^{*) @dalz says the numbers might not be very accurate here.}

So, now we have the stats... It looks like the stabilizer is doing a great job. HBD is slowly approaching peg. But it also looks like the stabilizer is doing a great job making profit while stabilizing HBD.

And when we have a proposal that makes profit to the DHF and creates buy pressure for Hive as side effects of its core function, isn't that also a perfect growth incentivizer?

There we go: a growth incentivising stabilizer. ;) Who would have thought? Well, @smooth did.