The decisions in the #hive ecosystem are incredibly exciting to watch, and it's really vital and interesting for me when I find major shifts that may occur on the platform. As I was browsing hot topics in the morning, I came across a post by @ausbitbank in which he reduced the HBD APR to 15% and would shortly reduce it to 10-12% in the coming weeks.

![](https://images.ecency.com/DQmfJdyV8e4G5DYAoxH1DVSkqkGz4bMAWiZ1CQtEHbokgh1/analyzing_hbd_apr_adjustments_insights_into_hive_ecosystem_dynamics.png)




This is the chat I had two months ago in which I presented my prediction that HBD APR will fall by roughly 16%. This is because I researched and learned a lot about HBD that was expected from. The goal of the HBD APR hike was to attract additional investors, however no significant results were observed.

There are around 12 witnesses among the top 20 that vote for 20% APR in HBD saving. That is, the majority of the witnesses are still in favour of keeping HBD interest at 20%. While the other 12 witnesses believe that HBD interest should be reduced, they presented different figures for the APR. 

The odd thing is that the top witnesses are in favour of lowering the HBD APR. Ausbitbank is the third highest witness, wishing to reduce HBD interest to 15% for the time being, then to 12% in the future weeks. This suggests that top witnesses are attempting to lower the #HBD APR. 

I am waiting for the decision of other witnesses, and if the APR may soon change dramatically. These are the witnesses' beliefs on HBD APR, and now I'd want to highlight why the witnesses desire to lower the HBD APR. Why do HIVE users fail to maintain HBD demand, and why do they seek to reduce HBD interest?

First and foremost, we must understand what #HBD is. Hive backed dollars, or HBD, is the hive ecosystem's stable coin. This functions similarly to USDT in that it gives investors with a stable coin and a non-volatile investment. The goal of HBD is to give investors with the safest investments as well as a bridge between buying and selling.

The fact that HBD investors are generating a safe 20% APR profit is a plus. However, this 20% APR is now in in danger, and it may be reduced if more witnesses vote in favour of lowering the interest rate. What was the point of witnesses to increase in the APR to 20%? 

More investors being drawn to HBD investments is what they want to see. Not just from the #hive ecosystem, but also from other crypto sides, they want to draw investors' attention to HBD. Investors aren't being drawn in very strongly, either, and the APR increase that was planned never materialised.

![Capture.PNG](https://i.imgur.com/uGB0GKX.png)

![](https://images.ecency.com/DQmderAiNtkxvi9xq5DNxB6ZznVT7CpHMePWGunV5Gfkzg3/analyzing_hbd_apr_adjustments_insights_into_hive_ecosystem_dynamics_1_.png)




Witnesses considered lowering the APR profit to 15% or even 12% because of this. The investors in the hive and those looking to get secure passive income should definitely not be happy about this. As well, there are many who would prefer to receive a return on their investment rather than investing their time and energy in maintaining a healthy ecosystem.


On the other side, investment in HIVE and HIVE power is far superior to HBD savings. This will have numerous benefits for both the investor and the ecosystem. If investors start investing in hive, the price of hive will begin to rise, which will benefit all hive users.

Another advantage is that as users begin to invest in #HIVE, they will become active and begin to work in the hive ecosystem. They will begin working hard to develop their wallet count and will make an effort to grow the account. The number of active users will increase, which is what the HIVE ecosystem need from us.

Please keep in mind that these are my opinions, and you may disagree with some of them. I apologise if my message and opinions made someone uncomfortable.

This is an attempt on my part to inform you about the potential change in the HBD APR. Also highlighted was the significance of HBD and HIVE investing, as well as the distinction between the two. I hope you find this piece informative, and I hope you enjoy it. If you like the post, please leave feedback in the comments section so that the next one will be even better. Thank you for sticking with me until the end.


![Capture.PNG](https://i.imgur.com/uGB0GKX.png)

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# REMEMBER: We should prepare for the unexpected and hope for the best. Life may not be easy, but you must do your best and leave the rest to God.

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