Rules to stop printing the Hive Backed Dollar (HBD) when the supply is too high. This is based upon the market capitalization of HBD and $HIVE and the ratio between each.
HBD printing for the Decentralized Hive Fund (@hive.fund) does not follow these rules and will continue to print HBD regardless of the supply.
The ratio was changed in Hard Fork 26. It was previously 10% and was increased to 30% in the hard fork.
What is affected the most is the author and curator rewards. Those who select 50/50 payouts will receive liquid $HIVE in lieu of HBD. This will continue until the ratio drops below the haircut level.
The conversion of HIVE-to-HBD conversion mechanism is also not operational during these times.