Vote for the Return Proposal
HIVE price is all-time low. The HBD/HIVE supply ratio is greater than 1.
1-year chart from Coingecko
What is the Return Proposal?
Almost everyone here should already know, but maybe some newbies are reading.
The proposal system on Hive is meant to support innovation and ecosystem growth. Money is sent to project initiators who receive enough votes.
Anyone can make a proposal. They will receive the requested HBD for the desired period if votes exceed those of the Return Proposal. The Return Proposal is the most important proposal. It is necessary to avoid allocating funds to all proposals.
If no one votes for the Return Proposal, it’s an open bar! The Return Proposal must receive enough votes to prevent whales from deciding alone. Even if you support a particular proposal, vote for the Return Proposal too.
https://peakd.com/me/proposals
Effect on the Price of HIVE
Recipients receive a fixed amount in dollars (HBD), but the funds come from HIVE. Proposal recipients often sell or convert their HBD into HIVE, then into fiat. This creates constant selling pressure and lowers the price of HIVE. By limiting excessive HBD distribution, the Return Proposal helps reduce this almost automatic selling flow.
Massive creation of HBD to fund these proposals creates an obvious imbalance, and the HBD/HIVE ratio becomes abnormally high.
When the price of HIVE drops, even more HIVE must be sold to generate the same amount of HBD. It is a vicious circle.
Payments remain constant for recipients, but the real cost for Hive explodes. The system becomes increasingly destructive when the market is weak because drops are amplified.
The lower the price, the more each proposal costs the network.
Who Gets Paid?
Funds benefit already well-established actors, often top witnesses. Many projects existed and were thriving even before proposals were introduced. If a project is truly useful, it will find support, possibly through delegation or Hive Engine tokens.
The current system can encourage a form of dependency on continuous funding. Some projects settle into a logic of comfortable and almost guaranteed revenue, without real performance pressure. Many proposal votes are cast without real analysis, often automatically or through influence networks.
The proposal system should favor real innovation, not established projects.
When a majority of funds go to a small already influential group, it reduces the legitimacy of the governance system.
Vote for the Return Proposal
Voting for the Return Proposal is not being against the development of Hive. It is about allocating money only to deserving projects aligned with the interests of the entire Hive community. Fewer funded proposals mean more attention to the ones that remain.
It is no longer simply about funding projects. It is about protecting Hive's value.
But we must go further...
Limit the Interest Rate
HBD Savings
The interest rate for HBD in savings is decided by the witnesses. Too high rates on savings encourage HBD creation, increase the HBD/HIVE imbalance, and put pressure on HIVE.
It is necessary to accept earning less on HBD savings by voting for reasonable witnesses. Protecting Hive also means making difficult choices. A strong Hive is better than an artificial yield.
Vote for Responsible Witnesses
Think long-term. Vote for witnesses limiting the interest rate.
The rate chosen by witnesses is in the APR column on https://peakd.com/me/witnesses