Hive Dollar PriceHBD

What is Hive Dollar (HBD)?

Hive Dollar (HBD) is a native stablecoin on the Hive blockchain, designed to hold a value of $1 USD in a decentralized manner. It is described as a trustless stablecoin backed by the underlying value of the Hive blockchain itself and pegged to the US dollar. This backing is achieved through an onchain conversion mechanism that allows HBD to be converted into an equivalent USD value of HIVE. For instance, 10 HBD can be converted into $10 worth of HIVE. The conversion mechanism is designed to keep HBD near $1 USD, but the peg is not guaranteed: at a 30% debt ratio the haircut rule activates and HBD converts to less than $1 of HIVE. HBD benefits from the fee-less and fast transactions of the Hive blockchain and offers reduced volatility compared to other cryptocurrencies, making it suitable for transactions or as a stable store of value within the Hive ecosystem. Total supply is approximately 33.01M HBD; the supply is not capped, and new HBD can be created through the conversion mechanism subject to debt-ratio limits. The project is a live and operational stablecoin within the Hive network.

Key Specifications & Tokenomics

• Name: Hive Dollar
• Ticker / Symbol: HBD
• Blockchain: Hive, a Graphene-based social blockchain
• Consensus Mechanism: Delegated Proof of Stake (DPoS)
• Smart Contracts: Not required — HBD is a protocol-level native asset, and its peg is enforced by built-in HBD↔HIVE conversion operations rather than by smart contracts.
• Category: Stablecoin
• Total Supply: 33.01M HBD
• Circulating Supply: 33.01M HBD
• Max Supply: Unlimited
• Decimal Places: 3
• Launch Date: March 20, 2020
• Official Website: https://hive.io/
• Block Explorer: https://hiveblocks.com/
• Source Code: https://github.com/openhive-network

Who created Hive Dollar (HBD)?

Hive was founded by a diverse group of community members, developers, and investors, with no single company behind it. The Hive blockchain emerged as a hard fork from the Steem blockchain, and HBD is a native asset of this decentralized platform.

How does Hive Dollar (HBD) work?

HBD maintains its $1 USD peg through two decentralized conversion operations: HBD to HIVE and HIVE to HBD. The HBD to HIVE conversion allows users to convert set amounts of HBD to $1 USD worth of HIVE with no extra fees, finalizing after 3.5 days using the median price of that period to prevent manipulation. The HIVE to HBD conversion is collateral-based; users initializing a conversion of X amount of HIVE receive Y amount of HBD immediately, equivalent to the value of X/2 of the HIVE. After 3.5 days, the cost for Y HBD is calculated using the median price, and the remaining HIVE is returned. This conversion carries a 5% fee that is burned. These mechanisms keep the price near $1 USD with a tight margin. HBD also features a savings account option where users can lock HBD with a 3-day unlock time to earn a variable interest rate set by witnesses, which changes over time. HBD placed in savings stays in the user's own Hive account with no custodian, and withdrawals take 3 days. Two debt-ratio limits protect the peg: at a 20% HBD-to-HIVE debt ratio, new HBD stops being created for rewards and conversions; at 30%, the haircut rule activates automatically and HBD converts to less than $1 of HIVE.

What makes Hive Dollar (HBD) unique and valuable?

HBD stands out as a unique type of trustless stablecoin that is backed by the underlying value of the Hive blockchain itself, rather than by centralized reserves. This decentralized backing, combined with the onchain conversion mechanism, is designed to keep its value near $1 USD. The Hive blockchain's fee-less and fast transactions, with 3-second block times, make HBD highly efficient for transfers and transactions. Additionally, HBD offers reduced volatility, making it a stable store of value and a preferred medium of exchange within the Hive ecosystem. The savings account feature provides a way to earn interest on HBD holdings, further enhancing its utility. The haircut rule acts as a security mechanism to prevent excessive debt by ensuring the debt ratio of HBD to HIVE remains below 30%. The peg is not risk-free: if the HBD-to-HIVE debt ratio reaches 30%, the haircut rule reduces the HIVE value received for HBD, and HBD remains exposed to general crypto market volatility.

What is Hive Dollar (HBD) used for?

HBD serves multiple purposes within the Hive ecosystem. It provides stability as a stablecoin pegged closely to the US dollar, attractive for users and dApp developers seeking to avoid extreme price volatility. Content creators on the Hive platform can receive their rewards in a mix of Hive Power (HP) and HBD, benefiting from both token appreciation and a stable currency. HBD can be traded on the internal Hive markets such as Hivedex.io and Ecency, as well as on exchanges including Tribaldex, Upbit and XBTS, and used for transactions within the Hive ecosystem, especially for services and goods that prefer a stable medium of exchange. Furthermore, HBD held in a savings account earns a variable interest rate set by witnesses, making it a tool for savings and yield generation.

How Is the Hive Dollar (HBD) ecosystem developing?

The Hive ecosystem is supported by a decentralized information sharing network with an accompanying blockchain-based financial ledger. It supports numerous dapps, APIs, and front-ends that contribute to accessible data, transactions, and records. Hive is designed to store vast amounts of content and enable time-based monetization, with use cases including social media with monetized rewards, interactive games, identity management, polling systems, and micro-loans. Hive is a Graphene-based social blockchain whose main selling points are decentralization, speed and scalability, with transactions confirming in less than 3 seconds. Hive positions itself as a preferred blockchain for dApp development, with features including time-delay security, integrated token allocation and upcoming Smart Media Token integration. Supported wallets include Peakd and Hive Keychain, and the ecosystem continues to grow with community-driven governance via DPoS.

How is Hive Dollar (HBD) obtained?

HBD is not mined through traditional proof-of-work. Instead, it is a native asset on the Hive blockchain, which operates on a Delegated Proof of Stake (DPoS) protocol. HBD is issued by the Hive protocol and obtained through HBD↔HIVE conversions, trading, or content rewards. Users can acquire HBD through conversions from HIVE, trading on exchanges, or earning it as rewards for content creation on the Hive platform. Additionally, users can earn interest by placing HBD in a savings account, with the interest rate voted by witnesses and variable over time. The savings account locks HBD with an unlock time of only 3 days, offering a low-barrier way to generate returns on holdings.

How to keep your Hive Dollar (HBD) Coin safe?

To keep HBD safe, users should utilize reputable wallets that support the Hive blockchain, such as Peakd and Hive Keychain. These wallets provide secure storage and management of HBD and other Hive-based assets. It is advisable to enable all available security features, such as two-factor authentication where applicable, and to safeguard private keys and recovery phrases. For long-term holding, the HBD savings account offers a secure way to earn interest while keeping funds accessible within 3 days. Users should also be aware of the haircut rule, which can affect the peg in extreme debt scenarios, and stay informed about network governance and updates. Regularly monitoring official Hive channels and using trusted block explorers like hiveblocks.com can help ensure the safety of HBD holdings.