Not so long ago, there was the idea of decreasing the APR of the HBD Savings from the current 20%. There have been plenty of interesting discussions and arguments about it, people have clashing and/or different opinions - some supporting it and others against it.
Everyone has something to say and whilst each may be thinking their ideas are for the good of Hive, I believe we don't really know who is absolutely correct and who is not - or do we?
Anyway, I caught up with the CTT Podcast on the 27th of last month but I had to listen to the replay again yesterday because there was something that I heard about HBD Savings that I wished to get the context of and perhaps re-acquaint my mind of what they were really trying to say.
There was this idea of having time lock vaults for HBD which I thought was just a random discussion until I saw this tweet by 3Speaktv where it mentioned it and asked for people's thoughts:
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Talk about commitment, having more skin in the game, and being in it for the long term. Obviously, the idea is that the longer the HBD gets locked up, the higher the APRs for it.
But of course, that's not just it. Reading between the lines, the reason why this is even being discussed is because it has something to do with the security of the blockchain. HBD is a debt instrument. For every HBD that is created, it is a debt that has to be paid back to the blockchain. You can read more of that here.
At 20% APR, the current waiting period (lock-up time) for HBD Savings is 3.5 days.
Opinions & Discussions
Although the different time lock vault for HBD might just be an idea right now, it will surely be discussed and just as with the HBD Savings APR, it's going to give people here on Hive something to debate on.
The comment section of the tweet is quite interesting. Some are supportive of the idea (suggesting a fee when one wants to get out of the vault earlier), others say it doesn't make sense, and blah-blah-blah. There were a few agreeing with lowering the APR but said time locks are not necessary.
This was an interesting question I read from there:
How do time vaults interact with HIVE's debt ratio?¹
The response it got:
They take a lot of HBD off the market and give a more predictable ability to forecast how much HBD is due to come liquid onto the market and when. Means it helps to make more accurate corrections for the next traunch of APR adjustments²
Well, I have absolute knowledge about how the Hive debt ratio works so I'm not even going to try to explain it further and just leave this here.
Will it happen?
We shall see...
I have the feeling that it will. It might just be a matter of time - it may take long or who knows.
But of course, it is not going to happen until the witnesses come to a consensus. And even when they do, the vaults will have to be built for it to get implemented.
[Disclaimer: I'm no techie or know anything about coding or how things work so don't take my word for it.]
Would I lock my HBD for Higher APRs?
It's too early to answer this now. Will decide when the time comes.
I am personally taking advantage of the current 20% APR on HBD Savings albeit my savings are small and insignificant to the total amount of HBD in savings which is over 7.5M per Dalz last update. I do like the idea of earning passively through HBD Savings and the ability to take it out in a shorter period of time (3.5 days).
So just in case the time lock feature on HBD Savings will be implemented in the future, I will probably just choose which I feel most comfortable with. Or it will depend on the circumstances when the time comes.
Meanwhile, it will be interesting to read more of people's thoughts about the idea of different time lock vaults for HBD. Do share yours :)
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