Conversions play a major role in the Hive ecosystem. In the past years there have been multiple adjustments and improvements in the process. This resulted in conversions enabled in both directions. On top of the two-way conversions, we now have the 
Was more HIVE added or removed trough conversions?
Where did the major conversions come from?
Types of Conversions
First let’s take a look at all the possible ways to convert HIVE to HBD and the opposite.
1. HBD to HIVE Conversions
The HBD to HIVE conversions have been around since the beginning of the chain and they are quite simple to track. There is only one way to create HIVE from HBD and that is when HBD is converted to HIVE via the 3.5 days process. This mechanic has been in place since the creation of the chain. What it does is provide support for HBD on the downside, preventing it from dropping below $1 as long as the debt limit is not reached.
2. HIVE to HBD Conversions
The HIVE to HBD conversions are a bit more complicated. They come later in development and some things were added on top of another.
There are three ways in which HIVE is converted to HBD:
- 1.Regular HIVE to HBD conversions
- 2.HIVE to HBD conversions from HIVE transfers to the DHF
- 3.HIVE to HBD conversions in the DHF from the existing HIVE in the DHF
The regular conversions would be the standard way for converting HIVE to HBD. When the price of HBD is above $1, users can convert HIVE to HBD at a fixed price of 1.05, that the blockchain guaranties for this type of conversions. When these types of conversions are made, half of the HIVE is instantly converted to HBD, while the other half is locked as collateral, and it is released after 3.5 days. The amount of HIVE that is given back depends on the price of HIVE in the 3.5 days period when the HIVE was locked as collateral.
This feature was added with the HardFrok at the end of June 2021. What it does is preventing HBD to increasing in price, giving stability on the upside. Because this feature was introduced later, we can see in the past there were high prices for HBD, formerly SBD.
The second type of HIVE to HBD conversions is when HIVE is transferred to the DHF (Decentralized Hive Fund). Because the DHF works with HBD, payouts to proposal workers are made in HBD, the HIVE needs to be converted to HBD for these funds to be usable. Unlike the standardconversions that have collateral locked for 3.5 days, these conversions are instant. As soon as HIVE is sent to the DHF it is converted to HBD at the blockchain median price. These conversions were added with the HF in October 2020. Most of the transfers to the DHF are made by the
The third type of HIVE to HBD conversions are the conversions from the existing HIVE in the DHF. These are the funds that were allocated to the DHF when the Hive creation HardFork happened. Around 83M HIVE were allocated in the DHF in March 2020. Later with the HardFork in October 2020 these funds were put in a slow conversion mode where 0.05% per day is converted to HBD to avoid price volatility. These conversions will go down as years passes. We are now more than half way trough with 36M left in the DHF.
The stabilizer has been a major player in the Hive ecosystem and its tokenomics. Up to a year ago it had around 200k HBD daily budget, while now it has scaled down to 12k. Because of this we will be looking at it separately here. The main goal for the stabilizer is to try and keep HBD around the dollar. The stabilizer receives HBD from the DHF, and if the price of HBD is higher than $1 it sells HBD on the internal market. If the price of HBD is lower than $1 it converts the HBD to HIVE and then uses that HIVE to buy HBD on the internal market, giving support for HBD on the downside.
The period that we will be looking at is from April 2020 till now.
HBD to HIVE Conversions
This is the one type of conversion for creating HIVE. Here is the chart.
I have separated these conversions into two categories: hbdstabilizer in white and regular users in red.
We can see that back in 2020 the HBD to HIVE conversations were made only by users. The stabilizer was not active yet and all the conversions were made by users. Then in 2021 the stabilizer started operating and since then it has been dominant in the HBD to HIVE conversions. The stabilizer is doing this to support the price of HBD, using HIVE. Any excess HIVE is sent back to the DHF and recycled.
In the last period we can see some more conversions coming from regular users after a while. This happens in a scenario of low HIVE prices but also in combination of the lower volumes that the stabilizer is doing now.
Note that these are not NET conversions. Most of the HIVE created above is converted back again to HBD. We will see details about this bellow.
When we zoom in we get this:
We can see that in February the conversions from regular users have hit a new hights and overcome the hbdstabilizer. A lot of these are coming from users trading on the internal market and acting as liquidity providers for the HIVE to HBD pair.
HIVE to HBD Conversions
Now with the HIVE to HBD conversion. As we have seen above, these are bit more specific and there are multiple types of conversions.
Here is the chart.
As we can see the
The conversions that are happening in the DHF from the ninja mine HIVE to HBD (red) are also presented on the chart, and we can see that they are constant as coded in the blockchain 0.05% from the HIVE per day. At the moment there is left around 31M HIVE in the DHF, from the initial 83M. On a daily level the HIVE amount converted to HBD decreases as the funds in the DHF drops. At the start in October 2020 there was around 44k HIVE per day converted to HBD, and now there is around 15k.
The blue columns are conversions from users, and we can see that these are happening occasionally when there is a sharp increase in the HBD price on the external markets, users convert HIVE to HBD and make arbitrage.
Net HIVE Created/Burned from Conversions
When we combine all the ways HIVE is converted to HBD, and the opposite we get the final net numbers from conversions.
When we sum up the created and removed HIVE from conversions, we get the chart above.
We can notice the volatility here as well. A lot of HIVE burned back in 2021, and a few spikes on the negative since then in 2022 and 2023. In 2025 we can see mostly positive conversions with a few big spikes.
In the first months of 2026 we reached new record highs with 1M HIVE per day on some occasions.
On a monthly basis the chart looks like this:
A bit clearer picture here.
We can see the large amounts of HIVE burned back in August and September of 2021.
But in the last months we have constantly high amounts of HIVE created with February reaching a new ATH for HIVE created from conversions.
Cumulative HIVE Created from Conversions Since 2020
When we plot the amount of HIVE created from conversions starting from 2020 we get this:
We can see that cumulative HIVE created from conversions in the whole five-year period is around 35M. After the big dip back in 2021 in the following years conversions were moving slowly, but in 2024 they have moved up a lot and are now net positive and since then it’s constantly going up with acceleration in the last months.
The top line is HIVE created from conversions if we exclude the HIVE conversions in the DHF that are basically converting locked HIVE into locked HBD in the DHF. Without these negative conversions, the net added HIVE since 2020 is close to 90M from conversions. This is actually the more realistic presentation since the conversions in the DHF are basically locked tokens, no matter what the form is.
Plotted on one chart the conversions by category looks like this:
From this chart we can notice that historically the conversions from the stabilizer (green) are mostly creating HIVE with almost 50M put in circulation now.
The ninja mine is what has been offsetting these conversions, burning HIVE in the DHF for HBD, but as mentioned its behind locked doors, so in reality it is not acctualy offseting them on the open market.
The stabilizer (green) keeps adding HIVE and removing HBD, while the ninja mine conversions (red) acts in the opposite direction and remove HIVE. Note that the actions from the stabilizer are mostly driven by users who are selling HBD on the internal market and the stabilizer is acting like a service provider and is converting the HBD for them.
In the very last month we can see the conversions from other users (white) spiking up!
