Good point I wasn't thinking about the inflow from other assets into HBD. However that means all that value is being locked up into HBD where it doesn't really benefit the system. In fact I almost see it as a new risk if someone had a wealthy amount of HBD that could take that 20% APR and keep buying up hive at a very lower price and have a massive value of powered up hive to vote witnesses. Would it not present a passive risk factor over time?
Also I'm sure little to no fees that would contribute back into the value of Hive where captured in those transactions. Being that it's a feeless blockchain hive was converted to HBD with zero fee or profit to the value of hive. Perhaps a conversion fee is in order and being that we are paying out 20% APR then paying a 0.25% fee or lower shouldn't be an issue at all and would provide value to the hive token if done correctly.
It always comes down however to the root issue. You can talk about all of this stuff but when it comes down to it hive is looked at as an exit flow of money. You interact and do things on hive to get paid and cash out is the mindset of many and it makes sense the way it's structured and promoted as an article marketing site you get paid to post content on. But there's NOTHING to bring that value or sustain that exit flow of money which is why hive always falls back down in value. Fix that mindset or address that constant exit of value and you fix the issue of hive always being worth so little.
RE: gtg witness update, upcoming changes in HBD APR