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RE: Case Study: HBD Savings Delegation

in LeoFinance2 years ago

Ah yes, oops! Thank you very much for pointing that out. Fixed it, and edited it into the following;

When HBD is locked up in savings on the Hive blockchain, the newly minted HBD can be converted to Hive at a fixed exchange rate after unlocking them, this unlocking process takes 3 days. The 3.5-day conversion process can be used to increase the amount of Hive in circulation, which in turn could potentially drive up the demand for Hive.

The increase in price (different than value (as Hive is added into circulation it causes a decrease in value if everything else remains equal as you said)) was more or less a possible outcome as demand for Hive could be seen as trust in Hive, as well as that more liquid Hive could be available (imagine everything is locked in HP). But I see how this can be confusing or a bit too far-fetched to include.

Thanks again for helping me clear this up! Appreciate that a lot.