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UPDATED VERSION

Hive Comunity Bank — DHF Proposal v2.4 (Revised)

Revision notice: This is a substantially revised version of the original Hive Comunity Bank proposal. The revision redesigns the fee structure, governance model, collateral mechanics, and financial projections based on community feedback. Voters who saw the original are encouraged to read this version in full before casting a vote. The original post remains available below for historical reference.

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Executive Brief

Hive Comunity Bank (HCB) is a community lending protocol that lets serious HIVE stakeholders access real spending power without selling their HIVE. Borrowers deposit HIVE as collateral, receive HBD loans, and use those proceeds to spend, invest, or earn — while their HIVE remains powered up and appreciating. Every HBD the DHF allocates enters savings on day one, earns 15% APR immediately, and the principal is never spent. This is not a grant. It is a capital injection. Please note that Hive uses human readable names, but they are limited to 16 characters, so I spelled Community with one M.

The protocol solves three problems simultaneously. First, it gives large HP holders liquidity access without exchange exposure. Second, it removes HIVE from liquid circulation — at 10 simultaneous loans with 50,000 HIVE minimum collateral, 500,000 HIVE leaves exchanges for approximately 15 months per lending cycle. Third, it generates guaranteed savings interest regardless of whether any loans are made — at 10,000 HBD per day for 71 days, the pool earns approximately 20,671 HBD in savings interest before a single borrower applies.

The manager is paid exclusively from curation rewards on collateral HP — not from DHF HBD. There is no liquidation mechanism, no oracle dependency, and no scenario in which the pool loses capital. Borrowers who deposit loan proceeds in HBD savings at 15% APR earn more in interest than they pay in loan interest — the net carry position is +7.5% APR on a 12-month term. The 71-day proposal duration gives the community a clear evaluation window before renewal. If the protocol underperforms, do not renew. If it works, expand it.

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One-Page Executive Summary

Parameter	Value
Receiver account	Hive account@hivecomunitybank
Daily funding	10,000 HBD per day
Proposal duration	71 days (renewable every 71 days)
HBD savings APR (current)	15%
Borrower interest rate (12-month)	7.5% — collected upfront at origination
Net borrower carry (12-month)	+7.5% APR when proceeds deposited in HBD savings
Standard tier collateral	50,000 – 199,999 HIVE
Founding tier collateral	200,000 – 500,000 HIVE
Manager compensation	Curation rewards from Hive account@hcb.curator only

What it does: A HIVE stakeholder deposits 50,000+ HIVE as collateral. HiveComunityBank powers it up to HP, delegates it to Hive account@hcb.curator, and within three days disburses an HBD loan worth 50% of the collateral value. The borrower spends, invests, or carries the HBD. At term end they repay the face value and receive their HIVE back through a 13-week powerdown. If they default, the HP stays delegated permanently — earning curation for the pool indefinitely.

What the DHF gets: 710,000 HBD enters savings over 71 days and earns approximately 20,671 HBD in guaranteed savings interest before a single loan is originated. That yield compounds back into the pool. The principal is never spent. Renewed continuously for twelve months, the pool reaches approximately 3,650,000 HBD earning 547,500 HBD annually.

Why the carry trade matters: At current rates, borrowers pay 7.5% to access HBD. HBD savings pays 15%. Borrowers who deposit proceeds in savings earn more than they pay — net gain of +7.5% APR — while keeping their HIVE intact and powered up.

The deflationary impact: Every active loan removes collateral HIVE from liquid circulation for approximately 15 months (loan term plus 13-week powerdown). At 10 simultaneous loans, 500,000 HIVE leaves exchanges per lending cycle. Defaults extend that lock indefinitely.

The risk profile: No oracle. No forced liquidation. No flash crash exposure. Interest collected upfront means the pool is whole on day one regardless of what the borrower does. The protocol earns 15% APR by existing — even with zero borrowers.

Three confirmed deployment paths for loan proceeds:

• Zypto (live, DHF-funded, September 2025) — Visa/Mastercard accepted at 150M+ merchants globally
• Altera/Magi (live mainnet) — HBD is the base asset in all cross-chain liquidity pools
• HBD savings — 15% APR, always live, net positive carry on 12-month terms

Phase 2: After approximately twelve months of operation, if four performance metrics are met (50%+ pool deployment, sufficient curation revenue, zero defaults, positive community engagement), a community tier with 10,000–25,000 HIVE minimums will be proposed via governance with a 14-day comment period.

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Proposal Index

Executive Brief — 3-paragraph overview (above)

One-Page Executive Summary — Key numbers, mechanism, carry trade, risk profile (above)

Core Protocol Design (Sections 1–4)

• 1. The Vision: Simplicity, Sustainability & Real-World Utility
  • 1.1 HODL-Friendly Finance
  • 1.2 The Three Pillars
  • 1.3 Who HiveComunityBank Serves
  • 1.4 Roadmap: From Proof of Concept to Community Scale ← Phase 2 criteria here
• 1. DHF Landscape & Strategic Assessment
  • 2.1 The Market Gap
  • 2.2 DHF Status (April 2026)
  • 2.3 Proposal Submission Details
• 1. Why HiveComunityBank Is Different
  • 3.1 Permanent Capital, Not a Sunk Cost
  • 3.2 The Carry Trade That Benefits Borrowers
  • 3.3 Deflationary Pressure on HIVE
  • 3.4 Built on Confirmed Hive Ecosystem Infrastructure
• 1. Financial Mechanics: The Never-Spend HBD Model
  • 4.1 Capital Structure
  • 4.2 71-Day Financial Projections
  • 4.3 Interest Rate Formula & Rationale

Lending & Operations (Sections 5–6)

• 1. Fee Structure & Lending Terms
  • 5.1 The Single-Fee Philosophy
  • 5.2 Borrower Tiers (Standard & Founding)
  • 5.3 Current Rates at 15% Savings APR
  • 5.4 Early Repayment & Interest Rebate
  • 5.5 Collateral Powerdown: What Borrowers Must Know
  • 5.6 Loan Maturity & Default ← dedicated default section
  • 5.7 Complete Lending Terms Reference
• 1. Operational Parameters, Governance & Security
  • 6.1 Pool Capital Structure
  • 6.2 Account Custody & the Shared Active Key Model
  • 6.3 The 3-Day Savings Security Window
  • 6.4 Loan Disbursement Process
  • 6.5 Borrower Confirmation Memo
  • 6.6 Waitlist Protocol
  • 6.7 Governance & Parameter Changes
  • 6.8 Reporting Obligations

Trust & Risk Management (Sections 7–9)

• 1. Accountability, Transparency & Risk Mitigation
  • 7.1 On-Chain Transparency
  • 7.2 Risk Management Framework
  • 7.3 Conservative Design Choices
• 1. Why Stakeholders Should Vote for HiveComunityBank
  • 8.1 The Only DHF Proposal That Preserves Its Capital
  • 8.2 Genuine Value for Large Stakeholders
  • 8.3 Strengthens Infrastructure Voters Already Funded
  • 8.4 Deflationary Pressure at Scale
  • 8.5 A Fundamentally Different Risk Profile
• 1. Contingency Plan
  • Scenario 1: Full Funding (71 days)
  • Scenario 2: Partial Funding
  • Scenario 3: No Funding

Next Steps & Resources (Section 10 & Appendix)

• 1. Next Steps for Voters
• Appendix: Protocol Accounts, Ecosystem Integrations, Glossary

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Full Revised Proposal is found here. Revised Proposal

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The below post is no longer accurate and is preserved here only for historical accuracy.

DHF Proposal: HiveComunityBank (HCB) Version 1, now revised.

A Permanent Source of Loans for the Hive Community

Subject: HiveComunityBank: Establishing a Permanent Community-Owned Credit Facility
Receiver Account: @hivecomunitybank
Project Manager: Hive account@shortsegments s

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1. The Vision: Spend Without Selling

HiveComunityBank (HCB) is a simplified credit protocol designed to end the "HIVE Dumping" cycle. For too long, users have been forced to sell their stake to pay for real-world expenses. HCB provides a community-owned alternative: Borrow against your HIVE, keep your stake, and spend HBD.

By bridging Hive with global payment networks, we turn HIVE into a true "Digital Gold Mine" with a built-in credit line.

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2. Real-World Utility: Point of Sale & Global Spending

HCB is a gateway to global commerce. We leverage existing Hive infrastructure to ensure HBD is as spendable as cash:

• Hive Keychain POS: Use the mobile app (v3.15+) for instant scan-to-pay at Hive-native merchants with biometric security.
• Zypto Interface: Fund virtual or physical VISA cards using your HBD loan to spend at millions of locations worldwide.
• Altera Bridge: Convert HBD to Bitcoin via Altera for Lightning Network transactions or BTC liquidity.

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3. Strengths of the HiveComunityBank Proposal

The HCB offers a superior value proposition compared to traditional "spend-and-deplete" proposals:

• High Capital Efficiency: Unlike a marketing proposal that might spend all the HBD on advertisements, the HCB places all the HBD into a Savings Account to earn interest for the community.
• Deflationary Pressure on HIVE: By locking deposited HIVE into Hive Power (HP) and delegating it, the facility actively removes liquid HIVE from the market.
• The "Never-Spent" Principal: The DHF principal remains in the wallet savings indefinitely. Only Hive-based fees and curation rewards pay the manager. This ensures the community's HBD capital is never used for administrative overhead.

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4. Financial Mechanics & DHF Budget Context

This project operates on a "circular wealth" model where the principal capital is never depleted.

The Request vs. DHF Capacity (April 2026)

To provide perspective on the sustainability of this request, here is how our costs compare to the total DHF daily budget:

• DHF Total Daily Budget: ~232,566 HBD (1% of the total fund)
• Current Daily Spend (All Projects): ~4,596 HBD
• HCB Daily Request: 10,000 HBD (This is only 4% of the available daily budget).

The "Never-Spend" Principal Model

• Initial Setup: 99% of all HBD from DHF is Deposited into Savings and becomes capitol available for loans.
• 1% for research, advertisements, marketing
• The Savings Loop: 99% of funds received from the DHF are deposited into the HBD Savings Account to earn interest (currently 15%).
• The 3-Day Security Delay: Loan funding requires a 3-day withdrawal wait—a deliberate security feature of the Hive Blockchain ensuring capital cannot be drained instantly.
• Compound Growth: All interest earned is reinvested. The DHF is effectively "depositing" money into a community resource rather than "spending" it.

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5. Lending Terms & Management Structure

• LTV Ratio: 50% (Deposit 100 HIVE value, receive 50% in HBD).
• Loan Life Fee: A 5% origination fee (in HIVE) is the only fee for the life of the loan.
• Repayment: 1-year term. If not repaid, capital is liquidated at 10% per month until recovered.
• Manager Compensation: Paid via the 5% origination fees and curation rewards (both in HIVE). All HBD interest is funneled back into the lending pool.
• Segregated Curation: Collateral is powered up and delegated to a separate account to keep the @hivecomunitybank ledger clean.

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6. Educational Context: The Sovereignty of the DHF

The Decentralized Hive Fund is an on-chain autonomous system allowing users to fund the ecosystem's growth.
Current DHF Statistics:

• DHF Total Budget: ~23,256,660 HBD
• Daily Funded: ~4,596 HBD
  By supporting HCB, voters are creating a Permanent Credit Facility. Unlike projects that require constant re-funding to survive, HCB builds a growing treasury that remains a community asset even if the proposal eventually concludes.

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7. Accountability & Transparency

• Dedicated Receiver: Using @hivecomunitybank ensures all proposal funds are easily tracked.
• Trustless Audit: Every transaction is documented via permanent on-chain memos.
• Multi-Sig Roadmap: As the fund grows, I plan to transition the account to a Multi-signature wallet involving trusted community members to eliminate "single point of failure" risks.

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8. What is the plan for account security?

• No account is 100% secure, but we employ a "Defense in Depth" strategy:

Time-Locking:

• HBD The primary security is the Hive Savings account, which requires a 3-day wait for any withdrawal.
• HivePower is protected by 13 week Power Down Time Lock.

Key Management:

I will perform random time-interval key changes to prevent static credential theft.

Multi-Sig Roadmap:

As the fund grows, we will transition to a multi-signature process involving trusted community members.

Asset Segregation:

Funds will eventually be spread across secondary HCB accounts to ensure that even in a worst-case compromise, the entire fund is never at risk.

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Manager Track Record

Hive account@shortsegments — Three Years of Community Financial Management on Hive

Supporting Appendix to the HiveComunityBank (HCB) DHF Proposal

Overview

Before asking the Hive community to entrust DHF capital to Hive account@shortsegments, voters deserve a transparent account of prior stewardship. What follows is a documented review of two community financial projects managed by Hive account@shortsegments on Hive, both launched in 2021, both operated with weekly public reporting, and both wound down responsibly before the 2022–2023 bear market could inflict losses on participants. Every claim below is verifiable on-chain via the Hive account@nolosslottery and Hive account@easydefi account histories, and through archived posts on hive.blog and leofinance.io.

Project 1: No Loss Lottery (Hive account@nolosslottery)

Launched: May 2021 | Duration: ~3 years | Ticket Holders: 5,000+

What It Was

The No Loss Lottery was a Prize-Linked Savings Account — a concept designed to combine the excitement of a lottery with the capital safety of a savings account. It was built on a simple principle: participants never had to risk their principal.

• Participants deposited Leo tokens to Hive account@nolosslottery at a rate of 1 Leo = 1 lottery ticket.
• Hive account@shortsegments invested the pooled Leo into the Cubfinance DeFi yield farm on Binance Smart Chain.
• Each week, the earnings generated by the pool were distributed as prizes via a transparent random draw.
• All deposits were fully refundable at any time — the principal was never at risk.

Mechanics & Transparency

The project was operated with a high standard of public accountability from day one:

• Each deposited Leo was assigned a numbered entry in a public ledger.
• A Google Random Number Generator was used for every draw, with screenshots published in each weekly winners announcement post.
• Weekly winner posts published every Sunday named each winner, the prize amount, and included wallet transfer confirmations.
• Refund requests were processed via public comment on the weekly post or wallet memo, with withdrawals completed within 1–2 days.
• All refund transactions are permanently recorded on the Hive blockchain with memos — a fully trustless, immutable audit trail.

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Scale & Longevity

The No Loss Lottery grew steadily over three years:

• Surpassed 1,000 tickets sold within the first few months of launch.
• Reached 2,000 tickets sold, celebrated publicly with an on-chain announcement post.
• Grew to over 5,000 tickets sold at its peak, documented on-chain.
• Sustained 39+ consecutive weekly prize distributions, with prizes ranging from 84 Leo to 304 Leo per week depending on pool yields.
• Generated yields of 68% to 128% APR for prize distributions, funded entirely by Cubfinance earnings — never touching participant principal.

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Capital Return: All Tickets Refunded Without Loss

When bear market conditions eroded Cubfinance yields to the point where the prize pool was no longer generating meaningful returns, Hive account@shortsegments made the responsible decision to wind down the project rather than continue operating at reduced utility.

Every ticket holder received a full refund of their deposited Leo. No participant lost their principal.

This wind-down was documented on-chain — all refund transactions are permanently recorded in the Hive account@nolosslottery wallet history with memos, providing an immutable public record of the complete return of community capital.

The Hive account@nolosslottery account's own revival post describes the original project as "a three-year success story, but a victim of the bear market" — and announces plans to relaunch with an upgraded model using HBD Savings instead of DeFi yield farms, incorporating lessons learned from the original run.

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Why This Matters for HCB

The No Loss Lottery demonstrates that Hive account@shortsegments:

• Can manage a consumer-facing, trust-based financial product with 5,000+ participants over a multi-year period.
• Maintained weekly public reporting without interruption for the full duration of the project.
• Prioritized participant capital over continued fee income when market conditions changed.
• Executed a clean, documented wind-down with zero losses to ticket holders — all refunds on-chain.

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Project 2: EasyDeFi (Hive account@easydefi)

Launched: July 2021 | Duration: ~1.5 years | Investors: 50+ named accounts

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What It Was

EasyDeFi was a pooled community investment vehicle designed to give Hive and Leofinance community members access to DeFi yield farming without needing to understand the underlying mechanics. The target investment was Cubfinance, a CertiK-audited DeFi project built by known Hive developers.

• Investors sent Leo or Hive to Hive account@easydefi in increments of 250 Leo minimum.
• Hive account@shortsegments handled all 13+ steps of the DeFi process: bridging Leo to bLEO, swapping for Cub and BUSD, providing liquidity to the Cub-BUSD farm, and harvesting weekly earnings.
• Each Sunday, 90% of weekly Cub earnings were converted to Leo and distributed proportionally to all investors based on their pool share.
• Hive account@shortsegments retained only 10% of earnings as an admin fee — later reduced to 5% — and never touched investor principal.

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Mechanics & Transparency

• Weekly investor reports published every Sunday named every investor by account, listed their exact Leo stake, their percentage of the pool, and their individual earnings for that week.
• By Week 30 (February 2022), the pool had officially surpassed 27,000 Leo invested.
• Reports ran for over 57 consecutive weeks, archived on leofinance.io under the tag #defiasaservice.
• The project grew to four investor groups (Groups A through D), each tracked separately with combined reporting introduced as scale increased.
• When funds briefly became stuck on the Hive-Binance bridge, Hive account@shortsegments disclosed this publicly in the investor report the same week, placed a support ticket, and completed delayed distributions the following day.

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Capital Return: Investors Protected from Bear Market

As the 2022 bear market compressed Cubfinance yields and token prices, Hive account@shortsegments made the decision to close EasyDeFi and return all investor capital before losses could occur. Investors who remained in Cubfinance independently after the pool closed suffered significant losses as the CUB token price collapsed during the broader crypto bear market.

EasyDeFi investors lost nothing. Their principal was returned in full.

The decision to close proactively — rather than continue collecting management fees while yields deteriorated — is the defining demonstration of Hive account@shortsegments' stewardship philosophy.

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Why This Matters for HCB

EasyDeFi demonstrates that Hive account@shortsegments:

• Can manage institutional-style pool operations with named investor ledgers, proportional distributions, and multi-group accounting.
• Maintained 57+ consecutive weekly reports with zero missed distributions.
• Handled operational complications (bridge delays, market volatility) transparently and without investor losses.
• Voluntarily closed a revenue-generating project to protect investor capital — at personal financial cost.

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Combined Track Record Summary

Metric	EasyDeFi (Hive account@easydefi)	No Loss Lottery (Hive account@nolosslottery)	HCB Pilot (2026)
Duration	~1.5 years (2021–2022)	~3 years (2021–2024)	60-day pilot
Community Reach	50+ named investors	5,000+ ticket holders	Open to all HIVE holders
Reporting Cadence	Weekly (57+ reports)	Weekly (39+ draws)	Weekly #hcb-report posts
Capital Managed	27,000+ Leo pooled	5,000+ Leo in prize pool	Up to 50,000 HBD deployed
Capital Return	100% returned before bear market losses	100% of all tickets refunded, on-chain	Integrity pledge: full return to Hive account@hive.fund if not renewed
Fee Model	10% of earnings only	10% of earnings only	5% origination fee in HIVE only
Key Outcome	Closed proactively; zero investor losses	Three-year success; zero ticket holder losses	Permanent HBD vault for Hive community

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Conclusion: A Foundation of Trust

Hive account@shortsegments has managed two separate community financial products simultaneously on Hive — one serving 5,000+ ticket holders, one serving 50+ direct investors — for a combined operational period exceeding three years. Both projects:

• Published weekly public reports without interruption.
• Managed other community members' capital responsibly under a trust-based model.
• Generated positive returns for participants throughout their operational periods.
• Were wound down proactively and ethically when market conditions changed, with 100% of participant capital returned.
• Left permanent, immutable on-chain records of every transaction, refund, and distribution.

The HiveComunityBank (HCB) pilot proposal builds directly on this track record. The "integrity pledge" to return all DHF principal and interest to Hive account@hive.fund if the pilot is not renewed is not a novel promise — it is the same philosophy that governed both prior projects. The blockchain record proves it.

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Verify the record: hive.blog/@nolosslottery — hive.blog/@easydefi — hive.blog/@shortsegments

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Tags: #hcb #hivecomunitybank #dhf #hive #defi #leofinance #shortsegments #nolosslottery #easydefi #trackrecordd
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Frequently Asked Questions (FAQ)

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1. Is this a custodial service? While a manager facilitates liquidations, the design uses Open Ledger transparency. All HBD principal stays in a time-locked Savings account; funds cannot be moved instantly without a 3-day public warning.

2. What happens if the price of HIVE crashes? We use a conservative 50% LTV ratio. If the price drops significantly, our 10% monthly liquidation protocol recovers the debt before the collateral value falls below the loan amount.

3. Why not just use a Smart Contract? Hive does not currently support native base-layer smart contracts for complex lending. This model provides immediate utility while avoiding the exploits (Flash Loans/Re-entrancy) common in automated DeFi.

4. Why is there a 3-day wait for loans? All HCB funds earn 20% interest in Savings. The Hive blockchain requires 3 days to withdraw from Savings. This protects the fund from hackers.

5. How is the Project Manager paid? Compensation is performance-based via 5% origination fees and curation rewards (both in HIVE). The manager never touches the HBD capital or interest.

6. What happens if the proposal loses funding? HCB is an asset-backed facility. If funding stops, the HBD and interest remain in the account, owned by the community.

7. How does this benefit the HIVE price? Every loan requires HIVE to be removed from exchanges and "Powered Up" as collateral, creating deflationary pressure on the liquid supply.

8. How is this different from other DHF proposals that require blind trust?
Most proposals ask for HBD to build a product; if the project fails, the money is gone. This is the "Trust Me Bro" model. HCB is different: I am not asking the DHF to pay me to build a "thing." I am asking the DHF to provide liquidity for a facility that only pays me if it is actually useful and generates fees. If the project fails, the principal capital—unlike almost every other proposal—is returned to the DHF. It is essentially a Money-Back Guarantee.

9. How do I know the funds are being used correctly?
You don’t have to take my word for it. Unlike off-chain projects, nearly 100% of HCB’s activity (loans, interest, repayments) is recorded directly on the Hive Blockchain. While I will provide regular reports, the community can perform a real-time audit of the @hivecomunitybank account at any moment. The blockchain is our source of truth.

10. What is the plan for account security?
No account is 100% secure, but we employ a "Defense in Depth" strategy:

• Time-Locking: The primary security is the Hive Savings account, which requires a 3-day wait for any withdrawal.

• HivePower is protected by 13 week Power Down Time Lock.

• Key Management: I will perform random time-interval key changes to prevent static credential theft.
• Multi-Sig Roadmap: As the fund grows, we will transition to a multi-signature process involving trusted community members.
• Asset Segregation: Funds will eventually be spread across secondary HCB accounts to ensure that even in a worst-case compromise, the entire fund is never at risk.

11. Why not just start with a tiny micro-loan pilot?
A micro-loan pilot would prove the basic concept, but it wouldn't demonstrate the bank's true utility for the ecosystem. To prove HCB can stop sell-pressure, we must show that larger accounts (Dolphins, Orcas, and Whales) can successfully raise significant cash without dumping HIVE on the open market. We need enough capital to be a viable tool for all stakeholders.

12. Is the bank automated or manual?
Currently, we use existing Hive "smart contracts" (like the Savings and Power Up functions). As the project matures, I plan to automate more of the lending and liquidation logic as the blockchain’s capabilities evolve. We are starting with proven, existing on-chain tools to ensure stability from Day 1.

13. Are you criticizing other DHF projects?
Not at all. Comparing HCB to a software or infrastructure proposal is "Apples to Oranges." Those projects require upfront payment because of their nature. The nature of a Credit Facility allows me to offer these unique guarantees and transparency features that other types of projects simply cannot.

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How You Can Help

1. Vote for the Proposal: Visit the Hive Proposals Page and hit Support for @hivecomunitybank.
2. Spread the Word: Share this on InLeo, Hive.blog, or X (Twitter).
3. The Bottom Line: This is not a grant; it is an injection of liquidity. Your HIVE stays yours, and the DHF's HBD stays in the vault. Vote for HiveComunityBank.