The market is bad enough, but when we see the inflationary figures as they are we need to adjust our actions accordingly. If you change an APR like what happened with HBD surely you monitor that this is sustainable.
Looking at the HIVE inflation from a simple logical and common sense point of view certain elements need to be addressed and changed. What we are witnessing with the HIVE price is not just market related, but is also self inflicted by what I would call incompetence or to be more kind a lack of understanding. If HIVE was a private company whoever was running it would be fired and replaced with someone who had an understanding of how to fix this.
This may not be a popular post for some, but people in the community need to speak up and call this for what it is. We are all affected by this so we should all be vocal. I am a proud member of the HIVE community and have worked my socks off not to see it destroyed through sheer stupidity and naivety. What is happening is too obvious and why I had to do this post due to genuine concern. As a community we can do better and we should not be witnessing the HIVE value we are seeing currently and heaven help us if we go lower and make no immediate changes. There is no time to play and procrastinate as the time for action is now.
I love my numbers and the numbers should be talking to you with you asking the questions why? What we have with HIVE and what it offers and how it operates is unique and there is going to be problems. Unfortunately the problems we are seeing is too obvious and is a result of over spending, thinking we are a bigger more valuable blockchain that the reality. The HIVE cow cannot be milked at the same rate we were at 3 or 4 years ago and that rate needs to be adjusted. Much like a country that has unchecked inflation that currency is directly impacted and loses value. Like I said the HIVE price is not just because the markets are down and the inflation we have here currently is also having a negative impact.
This Can Be Fixed So Do Not Panic
Lets just tackle the obvious problems and that is the spend that is taking place under the guise of marketing and development which is meant to be in HIVE's best interest. The spend that the likes if Value Plan are pushing through is actually having the opposite effect and is flooding the exchanges with HIVE at a rate that should never be the case. If we had a market cap of $600 million and not the current market cap of $38 million then things could be handled differently. Value Plan is spending roughly $1.9 million per year which is 5% of the HIVE inflation which when you do the maths this is absolutely absurd and should have been adjusted to the market cap a long time ago.
HIVE is not a rich block chain and is actually quite the opposite and those in positions making decisions on behalf of the community need to wake up and apply common sense when it comes to decision making. As a blockchain in our current state we cannot afford the luxury of funding a rally car and this should be placed on hold permanently until such time price says we can continue.
A 5% marketing budget is massive and even when HIVE bounces back to 20c or 40c or higher we should have a spending cap as a percentage and not an open book. Just because a proposal is voted on by the community it does not mean it is in the best interest of the community and they should be properly informed about the spend. If the community is aware of where we are financially then surely the decisions made would be different.
I heard the other day over the last 3 years HIVE inflation has been at 11%. 9.5% and now 12%. The spend that is happening is not taking into account of the value of the HIVE token. HIVE is over 20% currently and we are not that far off from having HBD affected.
This image was taken from 
20% of 500 million coins is 100 million new coins being added each year and the coin printer needs to be slowed down.
HBD is another problem and I know the intentions of having a 20% APR and now 15% were good intentions, but again this is hurting HIVE. Currently there is close to 8 million HBD staked at 15% APR is generating another $1.2 million dollars in HIVE value which is an extra 20 million HIVE at todays price. Even if HICE was 20c that APR is still far too high and again this APR should be automatically adjusted with the price of HIVE so we are not creating more inflation. The HBD APR is nearly 3% of HIVE inflation.
The bad thing is we saw HBD dropped from the rewards a few days ago and the next step if it reaches that drastic step is that there is no more HBD generated. Once that happens HBD is no longer guaranteed to hold the $1 peg value and the good name we have always heard about is gone for good as who would trust a stable coin that is not stable. It becomes useless as a store of value and a black mark for HIVE.
We currently have a 4.1% APR for HIVE Power/stake which is also madness and is in no ones best interest to hope this climbs even higher. Big deal you have more HIVE, but the token is losing it's value due to all the combinations listed above. The odd thing is I have not even mentioned the DHF Fund as that is just even more HIVE being spent. Those just voting for spending proposals to change due to not understanding the full picture. We need transparency and honesty with the HIVE inflation and if the budget is blown for the month then it is blown.
The time is now for those in the know to step up and make the right call for the sake of HIVE and the community not thinking of themselves, but for everyone. Sometimes there has to be some pain when change is required and the big calls need to be made.