# What is Hive SBI?
Hive Stake Based Income (Hive SBI) is an account-based curation program. You sponsor accounts for regular ongoing curation, and then you receive back the curation rewards as upvotes on your own content. This empowers both accounts to earn a sustainable crowdfunded basic income.

Members regularly accrue pending balance, and when their pending upvote balance is high enough, they receive an upvote on their latest post (or next post if their latest post is older than 24 hours), from one or more of our curation accounts.

# What is HPUD?
Hive Power Up Day is a longstanding Hive tradition, where users opt to power up their accounts on the first of the month. There are often contests and achievements to be earned from it. Just look through your feeds and you will see many better explanations than we can offer.

# Hive SBI's Power Ups
Hive SBI regularly receives HIVE enrollments as users designate accounts for ongoing curation. In the early days of our program, we powered up everything on a daily (and later, weekly) basis. After some years, we found the economics of our program were better suited by not immediately powering up everything.
Since Hive has an equity token (HIVE) and a debt token (HBD), there are core mechanisms that reward users for arbitrage activities that facilitate pegging the debt token to a target $1 value. For many years we have maintained a balance between HIVE and HBD in our 'liquid' reserves, and whenever we notice there is potential arbitrage profit, we put some portion of our reserves into motion. In order to have adequate HP to support our curation commitments, we were powering up 10% of our liquid HIVE on a weekly basis.

More recently, we chose to increase our liquid reserves in order to better benefit from the occasional HIVE pump. When the HIVE price begins to fall from each pump, the HBD arbitrage becomes more profitable, and shifting more HIVE into HBD enables bigger swings each time. In addition, when HIVE falls, the HBD part of our reserves would grow as a % of total program value, and enable us to power up even more when HIVE falls, partially offsetting the declines in vote values that result from HIVE price collapse. Now we power up 1% of our liquid HIVE reserve instead.

Since our liquid HIVE is continually replenished by enrollment fees, a 10% powerup rate implies that we were keeping 10 weeks of enrollment fees 'reserved' as liquid HIVE or HBD, and a 1% powerup rate means we are gradually moving toward 100 weeks of enrollment fees. That seems excessive, even in light of the fact that Hive SBI is more than seven years old.

That brings us to HPUD. Instead of only participating when our weekly powerups happened to land on the first of the month, we hope to participate on a monthly basis. That means 64 power-ups in a year, and 1% each time brings our liquid reserves target down to 80 weeks of enrollment fees.

Of course, by the time we reach an equilibrium where 1% weekly powerup is roughly the same as weekly enrollments, the program will have grown and it will likely still be less than 10% of total program assets.

That's a lot of words to say we just powered up some HP and will again.


![image.png](https://files.peakd.com/file/peakd-hive/steembasicincome/23tmjgGNFL7zEnKsSLacuMgW5WCiH6wN7zcXFZnB2SfBRsEMEpLXeFcbrRZ83yJPH7Q16.png)

# Impact on Votes
In the short run, building a reserve means powering up smaller amounts. That has a slight drag. In the long run, we will once again reach a stable equilibrium where we power up approximately all of the enrollments we receive each week. At that point, the boosts from arbitrage profits and carrying liquid HBD to benefit from HIVE price swings will work together to provide more member value than was 'lost' by not immediately powering up.

We are here for the long-haul. Hive SBI has never powered down. We are comfortable making short-term trade-offs that boost the long term performance of our program.

# Enrollment
To curate accounts using Hive SBI, or to increase the level of basic income that you receive, enrollment is very straightforward:

Just send 1 HIVE to @steembasicincome. Include the name of a Hiver to sponsor in the transaction memo (preceded by @). You and the person you sponsor will each receive 1 unit in the program. You can sponsor any active Hiver (except for yourself), it does not have to be a current member.

The official currency for enrollment is HIVE. If we choose to accept HBD without refunding it, you do not receive extra value for it. Enrollments are processed automatically every 144 minutes.

Most questions are addressed in our [FAQ](https://docs.hivesbi.com/). If you still have questions, ask in the comments section or join us in our [discord channel](https://discord.gg/Z5KVQ5whKR).