The payout in Hive Blockchain & HBD print rate works as per the logic coded in Hive Blockchain.
First off, it is essential to understand that HIVE is the native token of the Hive Blockchain and HBD is another currency that is used to pay the authors/content creators.
But HBD always works as short term debt and this short term debt is capped so as to avoid any shortage of liquidity. The defined cap is 10%. So if the debt ratio exceeds 10% then the blockchain will not print any HBD.
Depending upon the Debt ratio, a post payout in Hive can be in:
- HIVE+HP
- HIVE+HBD+HP
- HBD+HP
The Debt Ratio is the ratio of the market cap of HBD to the market cap of HIVE.
The market cap of HBD and HIVE can be calculated by taking the figures from Hiveblocks.com & then multiplying with the current price of HIVE & HBD.
Depending upon the debt ratio, the HBD print rate is decided by the Hive blockchain.
The various conditions (for HBD print rate) that are coded in Hive blockchain are:-
- Debt ratio <9% => Payout- HBD+HP
- Debt ratio between 9% and 10% => Payout- HIVE+HBD+HP
- Debt ratio >10% => Payout- HIVE+HP
If the Debt ratio is in between 9% and 10%, then the blockchain will print HBD on the basis of this formula:
HBD print rate= 100%*(10-debt ratio)
Now let’s calculate the current Debt ratio.
Visit Hiveblocks.com. You can find the current supply of HIVE & HBD.
- Current supply of HIVE= 348,172,118
- Current supply of HBD= 6,497,956
Then visit Coingecko.com to know what is the value of HIVE & HBD.
- HIVE= 0.117
- HBD= 0.644
Now multiply the price with the supply to obtain the market cap of HIVE & HBD
- Market cap of HIVE= 348,172,118 * 0.117= 40,736,137.81
- Market cap of HBD= 6,497,956 * 0.644= 4,184,683.66
Debt Ratio= (Marketcap of HBD/Marketcap of STEEM) * 100%
Debt Ratio= (4,184,683.66/40,736,137.81) * 100%
Debt Ratio= 10.27%
As the Debt ratio is now above 10%, There is no new HBD being printed now and that is also the reason why the post payout now is in HIVE and HP only.
If the debt ratio will be below 10% then you can calculate the HBD print rate by this formula: HBD print rate= 100%*(10-debt ratio)
If the debt ratio will be anywhere between 9% and 10 %, then HBD print rate will be somewhere between 0 & 100%(using the above formula). The HBD print rate becomes 100% once the debt ratio falls below 9%.
Thank you.