Executive Summary

The HiveComunityBank (HCB) is a permanent community lending protocol that unlocks real spending power for serious HIVE stakeholders without requiring them to sell a single token. Borrowers deposit HIVE as collateral, receive HBD loans, and use those proceeds to spend, invest, or earn — while their HIVE remains powered up, generating curation rewards, and appreciating in value.
This is not a grant. This is not a marketing budget. This is not infrastructure that depreciates. Every HBD the DHF allocates to HiveComunityBank enters a savings vault on day one and begins earning 15% APR immediately. The principal is never spent. It compounds in perpetuity, funding loans while growing the pool for future generations of Hive users.

What HiveComunityBank Does
A HIVE stakeholder with 50,000 or more HIVE deposits their tokens as collateral. The HiveComunityBank powers up the HIVE, delegates it to the curation account, and within three days disburses an HBD loan worth 50% of the collateral value. The borrower chooses what to do with the proceeds:
Spend via Zypto — load a Visa or Mastercard with HIVE or HBD and spend at over 150 million merchants worldwide, pay bills in 120+ countries, or top up mobile phones in 170+ countries
Earn via Altera — deploy HBD into liquidity pools on Altera, Magi’s live cross-chain DeFi platform where HBD is the base asset for BTC/HBD, HIVE/HBD, and ETH/HBD pools
Carry in savings — deposit HBD into savings at 15% APR and earn more in interest than the loan costs
Any combination of the above

At loan end the borrower repays the face value in HBD. Their HIVE is returned via 13-week powerdown. If they do not repay, the protocol becomes a permanent HP holder — consistent with its mission of locking HIVE supply.

What the DHF Gets in Return
Unlike every other DHF proposal, HiveComunityBank does not spend the capital it receives. It invests it. The full allocation sits in HBD savings earning 15% APR from the moment it arrives. On a 710,000 HBD allocation (10,000 HBD daily × 71 days) that generates approximately 106,500 HBD in savings interest before a single loan is made. The manager earns nothing from DHF HBD — compensation comes exclusively from curation rewards from collateral HP.

Why Now
Three pieces of Hive ecosystem infrastructure are live today that make HCB borrowers’ loan proceeds immediately deployable:
Zypto completed its DHF-funded Hive integration in September 2025 — HIVE and HBD now load directly onto Visa and Mastercard products accepted globally
Altera, Magi’s live DeFi application, uses HBD as the base asset in all cross-chain liquidity pools — loan proceeds deploy directly into BTC/HBD and HIVE/HBD pools to earn trading fees
HBD savings at 15% APR creates a structural carry trade that makes borrowing mathematically profitable on loan terms of 12 months or less

All three conditions are live today. HiveComunityBank builds on infrastructure the community has already funded and deployed.

1. The Vision: Simplicity, Sustainability & Real-World Utility
   HiveComunityBank is a single-purpose community lending protocol. Its job is to give serious HIVE stakeholders access to spending power without forcing asset sales. Every design decision serves that core purpose.
   1.1 HODL-Friendly Finance
   Most HIVE holders who need liquidity face an unpleasant choice: sell HIVE and lose their stake, or stay illiquid and miss spending opportunities. The HiveComunityBank eliminates that choice. A stakeholder deposits HIVE, receives HBD within three days, uses the proceeds however they choose, and at term end repays to retrieve their full collateral. Their HIVE stake, governance rights, curation rewards, and price exposure are preserved throughout.
   1.2 The Three Pillars
   Simplicity
   One fee. One formula. Four loan term options. The interest rate is set by a public on-chain parameter — the HBD savings APR — divided by two, prorated by term. No manager discretion. No hidden charges. A borrower knows their exact cost before submitting a single transaction.
   Sustainability
   The protocol sustains itself through two yield streams operating simultaneously: HBD savings interest on undeployed capital, and curation rewards from delegated collateral HP. Neither stream requires borrowers to exist. The pool earns 15% APR on every HBD it holds regardless of loan volume, building reserves during quiet periods without depleting principal.
   Real-world utility
   HBD loan proceeds connect directly to two confirmed, live payment and DeFi rails. Zypto provides Visa and Mastercard access to over 150 million merchants globally. Altera provides access to cross-chain liquidity pools where HBD is the universal base asset. A borrower can move from HIVE collateral to real-world spending in three days using entirely Hive-native infrastructure.

1.3 Who HiveComunityBank Serves
HiveComunityBank targets established stakeholders with meaningful HP positions who want liquidity access without exchange exposure. The minimum collateral thresholds — 50,000 HIVE for standard tier and 200,000 HIVE for founding tier — ensure every borrower has genuine skin in the game and that every loan meaningfully contributes to the deflationary mission. As HIVE price rises, the same collateral produces proportionally more HBD, aligning the protocol with ecosystem growth in every dimension.

1.4 Roadmap: From Proof of Concept to Community Scale
The Year 1 collateral minimums (50,000 HIVE standard, 200,000 HIVE founding) are sized to ensure protocol sustainability during initial deployment. At current HIVE price these thresholds produce loan proceeds in the 1,300–5,500 HBD range — meaningful liquidity that justifies the 3-day settlement cycle and structured loan terms. Lower minimums would create operational overhead that exceeds the revenue small loans generate, undermining the protocol’s ability to sustain itself through curation rewards alone.
Phase 2 expansion is planned for Year 2, subject to Year 1 performance.
If the protocol demonstrates viability in Year 1, a community tier will be introduced with lower minimums in the 10,000–25,000 HIVE range, opening access to a broader segment of the Hive community. Phase 2 will proceed only if Year 1 achieves:
Pool deployment above 50% on average — sufficient demand to justify expansion
Curation revenue sufficient to sustain manager compensation at higher operational volume
Zero defaults or security incidents — proven risk management
Positive community engagement — measured via quarterly report comments and feedback

If these conditions are met, the Phase 2 tier structure, minimum collateral amounts, and implementation timeline will be published as a governance proposal with a minimum 14-day community comment period. The community decides whether to expand based on demonstrated performance, not promises.
If Year 1 performance does not support sustainable expansion, the protocol will focus on optimizing service to existing tiers rather than diluting resources across loan sizes that cannot generate sufficient revenue to cover their operational cost.

1. DHF Landscape & Strategic Assessment
   2.1 The Market Gap
   The DHF currently funds infrastructure, marketing, and development. Each category serves the ecosystem but shares a common characteristic — the capital is consumed. HiveComunityBank addresses this gap by treating DHF funding as capital allocation rather than expenditure. The protocol does not spend DHF HBD. It invests it. Every HBD received enters savings and remains there permanently, earning and compounding. The principal allocated today will still be working for the Hive community a decade from now.
   2.2 DHF Status (April 2026)

HiveComunityBank requests 0.43% of the available daily budget. Unlike proposals that consume this allocation, HiveComunityBank converts it into permanent community capital that generates value long after the proposal period ends.
2.3 Proposal Submission Details
Submission fee: 10 HBD + (365 − 60) × 1 HBD = 315 HBD total — returned to the DHF
Receiver account: hivecomunitybank (separate from creator account for transparent fund tracking)
Renewal: annual, subject to community vote and quarterly performance reports

1. Why HiveComunityBank Is Different
   3.1 Permanent Capital, Not a Sunk Cost
   When the DHF funds a marketing campaign with 100,000 HBD, that capital is gone when the campaign ends. When the DHF funds HiveComunityBank with 10,000 HBD per day, that capital is in savings earning 15% APR immediately, compounding throughout the year. By year end the pool reaches 710,000 HBD earning 106,500 HBD annually. The DHF is not spending this capital. It is investing it in permanent infrastructure.
   3.2 The Carry Trade That Benefits Borrowers

This carry position is deliberate design. A protocol that is genuinely profitable for borrowers creates long-term repeat participants. Repeat participants build the deep loan book that maximises HIVE locking and curation revenue. The entire system aligns around one outcome: more HIVE locked, more HBD deployed, more ecosystem value created.
3.3 Deflationary Pressure on HIVE
All deposited HIVE collateral is powered up and delegated for the full loan term. At minimum collateral of 50,000 HIVE per loan and a target of 10 simultaneous active loans, the protocol locks at least 500,000 HIVE at full deployment. The 13-week powerdown requirement means collateral remains locked as HP for an additional 91 days after every repayment — a 12-month loan effectively removes HIVE from circulation for approximately 15 months.
3.4 Built on Confirmed Hive Ecosystem Infrastructure

1. Financial Mechanics: The Never-Spend HBD Model
   4.1 Capital Structure
   100% of all DHF-received HBD enters HBD savings immediately upon receipt
   15% of pool capital is designated as permanent reserve — held in HBD savings, withdrawn on the standard 3-day cycle when needed
   85% of pool capital is deployable as active loans
   10% of deployable capital per borrower is the standard exposure cap
   20% of deployable capital is the absolute single-borrower ceiling

4.2 Year 1 Financial Projections
The following projections use a realistic daily drip deployment model. The 10,000 HBD daily funding accrues savings interest progressively as it arrives.

These projections assume 100% of capital in savings with no loans deployed. Active loans generate additional revenue: every 100 HBD loan at 7.5% produces 7.50 HBD in immediate pool revenue plus ongoing curation from locked collateral HP.
4.3 The Savings Loop
Deposit: 100% of DHF funds flow directly into HBD savings upon receipt
Interest accrual: the vault earns 15% APR on the full balance continuously
Loan origination: savings withdrawals initiated for approved loans; 3-day window provides security and borrower confirmation time
Interest collection: upfront interest captured at disbursement and retained in the pool
Curation income: delegated collateral HP earns curation rewards throughout the loan term
Repayment: returned HBD re-enters savings immediately, restoring full earning capacity
Reinvestment: all income streams compound back into the pool
4.4 Interest Rate Formula

Interest Rate = HBD Savings APR × 0.5 × (loan term months ÷ 12)

At current 15% savings APR: 3-month loans cost 1.875%, 6-month loans cost 3.75%, 12-month loans cost 7.5%, 24-month loans cost 15%. If witnesses adjust the savings APR, all new loan rates adjust automatically. Existing loans are not repriced. The formula requires no manager discretion.

1. Fee Structure & Lending Terms
   5.1 The Single-Fee Philosophy
   HiveComunityBank charges borrowers one fee and one fee only: interest collected as a single upfront payment at loan origination. There is no origination fee, no monthly interest accrual, no renewal charge, and no prepayment penalty. The manager of this facility is compensated exclusively through curation rewards generated by collateral Hive Power delegated during the loan term. The manager’s income scales with the size of the collateral pool, not with the number of fees extracted from individual borrowers.
   5.2 Borrower Tiers

Both tiers carry identical interest rates. The founding tier distinction earns recognition and priority access, not a rate reduction. Both tier ranges are reviewed annually through community governance with a minimum 14-day community comment period before any change takes effect.
5.3 Rates at Current 15% Savings APR

5.4 The Carry Position

5.5 Upfront Interest Collection
Interest is collected as a single payment at loan origination rather than accruing monthly. The pool is made whole on day one — before the borrower spends a single HBD. There is no window during which pool capital is at risk of non-recovery. Unused interest is rebated pro-rata on early repayment.
5.6 Early Repayment & Interest Rebate
Borrowers may repay at any time before maturity. A partial rebate is returned on a straight-line monthly basis:

Rebate = Interest Paid × (Full Months Remaining ÷ Original Loan Term in Months)

The rebate is paid via HBD savings withdrawal initiated same day as repayment and completed within 3 days, consistent with the protocol’s standard settlement cycle. No rebate is issued in the final calendar month of the term.

5.7 Collateral Powerdown: What Borrowers Must Know

To minimise the gap between loan maturity and full collateral return, HiveComunityBank follows a proactive powerdown protocol:
Scheduled maturities: powerdown initiated 91 days (13 weeks) before the loan maturity date. Curation ceases at that point. HIVE begins returning in weekly installments at or near maturity.
Early repayments: powerdown initiated within 7 days of repayment receipt. 13-week release schedule begins from that date.
Defaults: HP remains delegated indefinitely. No powerdown initiated unless the borrower subsequently repays in full.

5.8 Loan Maturity & Default
At maturity, the borrower repays the full face value in HBD and receives their HIVE in 13 weekly installments via powerdown already in progress. If the borrower does not repay, the powerdown initiated 91 days prior is cancelled, the HP is re-delegated, and curation accrues to the pool permanently. The pool suffers no capital loss in either scenario — the interest was collected at origination. There is no forced liquidation, no oracle dependency, and no automated collateral sale.
5.9 Complete Lending Terms Reference

1. Operational Parameters, Governance & Security
   6.1 Pool Capital Structure

The entire pool — 100% of HBD — earns savings interest at all times. The reserve is in savings, not liquid HBD. Capital only leaves savings when actively disbursed as a loan. There is no idle capital.

6.2 Account Custody & the Shared Active Key Model
The @hivecomunitybank account uses a shared active key structure. Three named keyholders each hold an independent copy of the active key and may act unilaterally on routine operations. Security is provided by the Hive blockchain’s built-in 3-day HBD savings withdrawal window, which gives any keyholder or the broader community the ability to cancel any unauthorised outbound transfer before it completes.

6.3 The 3-Day Savings Security Window
Every HBD outflow from HiveComunityBank — without exception — is routed through HBD savings. The entire pool including the reserve is held in savings at all times. No HBD is ever transferred directly from a liquid wallet balance. No funds can leave the protocol instantly under any circumstances, including account compromise.
During the 72-hour withdrawal window: any of the three keyholders can cancel unilaterally; witnesses can freeze the account if compromise is confirmed; any community member monitoring the account can raise an alarm publicly; the borrower can verify their disbursement is in progress.
6.4 Loan Disbursement Process

6.5 Borrower Confirmation Memo
On day 0 the manager sends an approval message to the borrower explaining the 3-day window, the cancellation option, and requesting confirmation. The borrower must send the following memo to @hivecomunitybank before day 3:

This memo proves account control, creates a permanent on-chain acceptance record, and gives the borrower a natural cooling-off period. If no confirmation is received by day 3, the withdrawal is cancelled and all collateral is returned with no fee charged.
6.6 Waitlist Protocol
Pool at 85% deployment triggers waitlist mode for new applications
Founding tier applicants are placed on a priority waitlist served before standard tier regardless of application date
Standard tier applicants served strictly first come first served
Waitlist position confirmed to each applicant via on-chain memo
Applicants who do not respond within 7 days of capital availability notification forfeit their position
6.7 Governance & Parameter Changes
Any proposed change to interest formula multiplier, LTV ratio, tier ranges, reserve ratio, exposure caps, or co-custodian composition requires the full governance process:
Manager publishes a governance post tagged #hcb-governance describing the proposed change and projected impact
Minimum 14-day community comment period — no change takes effect before this closes
Manager publishes a summary of community feedback and a final decision post
If approved, change takes effect for new loans only — existing loans are never repriced
Change recorded in the next quarterly report

Account permission changes require all three keyholders to agree and publish a joint post before any on-chain authority update is made.
6.8 Reporting Obligations

All reports published as Hive posts tagged #hcb-report. Every metric is independently verifiable on-chain.
6.9 Manager Succession
If the manager becomes permanently unavailable, either co-custodian may initiate an emergency governance post. The two co-custodians together can pause new originations and continue servicing existing loans. A community vote can designate a successor. All loan records are permanently on-chain and do not depend on the manager’s continued availability.

1. Accountability, Transparency & Risk Mitigation
   7.1 On-Chain Transparency
   The HCB’s accountability model relies on the Hive blockchain’s inherent transparency rather than on promises or third-party audits. Every transaction is permanently recorded on-chain with timestamps and memos. Any stakeholder can verify the protocol’s complete financial history in real time using any Hive block explorer, 24 hours a day, 7 days a week, without requesting access from anyone.
   @hivecomunitybank — all DHF receipts, savings deposits, loan disbursements, repayments, and rebates
   hcb.curator — all collateral HP delegations, curation rewards earned, and undelegations
   Borrower accounts — confirmation memos, repayments, and powerdown receipts all publicly visible
   7.2 Risk Management Framework

7.3 No Official Accountability — But Maximum Voluntary Transparency
The DHF system has no contractual enforcement mechanism. The HCB commits to voluntary best practices that exceed typical proposal standards: quarterly financial reports with detailed metrics, publicly auditable blockchain transactions, community engagement via tagged posts and comment responses, and open communication channels for stakeholder questions. Voters who are uncomfortable with voluntary governance should weigh that against the fully transparent on-chain audit trail that makes any deviation immediately detectable.
7.4 Conservative Design Choices
50% LTV provides substantial price buffer before any theoretical capital risk
Upfront interest model means the pool is made whole before the borrower spends anything
No forced liquidation eliminates the operational risk of price-triggered selling
No oracle dependency eliminates the attack surface that has caused losses in other DeFi protocols
3-day savings window prevents instant capital drain even in worst-case account compromise scenarios
13-week powerdown prevents collateral from disappearing overnight

1. Why Stakeholders Should Vote for HiveComunityBank
   8.1 It Is the Only DHF Proposal That Preserves Its Capital
   Every other funded DHF proposal depletes its allocation. HiveComunityBank is the first proposal in DHF history to treat its allocation as permanent capital — capital that earns, compounds, and remains available indefinitely. A yes vote today is not spending 710,000 HBD annually. It is investing it in permanent infrastructure.
   8.2 It Creates Genuine Value for Large Stakeholders
   A founding tier borrower with 200,000 HIVE deposits collateral worth approximately 11,800 HBD at current price and receives a 5,546 HBD loan. If they deposit proceeds in HBD savings at 15% APR they earn approximately 832 HBD in interest over 12 months against an interest cost of 708 HBD — a net positive return of 124 HBD while retaining full HIVE exposure. These are real numbers verifiable on-chain today.
   8.3 It Strengthens Infrastructure Voters Already Funded
   DHF voters already approved the Zypto integration. DHF voters have supported Magi/VSC development. HiveComunityBank creates demand for both platforms by putting HBD loans into the hands of stakeholders who will use them. Regular loan flows build Zypto usage metrics and Altera liquidity. The HCB amplifies the return on investments the community has already made.
   8.4 It Creates Deflationary Pressure at Scale
   At full deployment with 10 active loans of 50,000 HIVE minimum, the protocol locks 500,000 HIVE as HP. No exchange listing, no buyback program, and no marketing campaign removes liquid HIVE from circulation as reliably or permanently as collateralised lending. The HCB is a supply management mechanism with a lending service attached.
   8.5 The Risk Profile Is Fundamentally Different
   Even in the absolute worst case scenario — zero borrowers, zero loans — the pool earns 15% APR on its full balance and returns that yield to the community. The conventional DHF proposal risk — the funded project delivers nothing — does not apply here. The protocol earns by existing.

1. Contingency Plan: Partial or Lost Funding Scenarios
   Scenario 1: Full Funding (10,000 HBD per day for 365 days)
   Pool reaches 710,000 HBD by year end (10,000 HBD daily × 365 days)
   Deployable capital: 602,500 HBD supporting 6+ simultaneous loans
   Savings interest Year 1: approximately 106,500 HBD generated regardless of loan activity
   Both founding and standard tier loan programmes operational from day one at scale
   Scenario 2: Partial Funding (loses funding mid-year)
   New loan originations pause immediately upon funding loss
   All existing loans continue to be serviced under their original terms
   All HBD received to date remains in savings, earning interest continuously
   Manager continues operating via accumulated curation rewards from active loan collateral
   Status update published within 7 days explaining adjustments
   Proposal resubmitted for next voting cycle with performance metrics from partial deployment period
   Scenario 3: No Funding (proposal rejected or never funded)
   Project does not launch — no community capital is allocated
   Zero DHF impact — no funds withdrawn if proposal never achieves funding threshold
   Proposal creator may seek private capital or resubmit with revised terms incorporating community feedback

1. Next Steps for Voters
   To support the HiveComunityBank proposal:
   Review this proposal thoroughly and verify on-chain details via the hivecomunitybank account history
   Visit the DHF voting interface at https://peakd.com/proposals
   Cast your vote for the HiveComunityBank proposal using your Hive Power stake
   Monitor progress through quarterly reports tagged #hcb-report on Hive
   Engage with the community by commenting on updates and sharing feedback

HiveComunityBank transforms DHF funding from expenditure to investment. By voting yes, you authorise the creation of permanent liquidity infrastructure that benefits all Hive stakeholders through deflationary HIVE locking, sustainable HBD demand, real-world spending access via Zypto, cross-chain DeFi access via Altera, and perpetual capital compounding.

1. Appendix: Key Resources & References
   11.1 Protocol Accounts

11.2 Hive Ecosystem Integrations Referenced

11.3 Glossary