I asked Grok AI and it said that HBD rewards don't involve selling HIVE and don't have sell pressure. What do you think of this response, pasted also below: https://grok.com/share/c2hhcmQtMg%3D%3D_2714a428-1eec-481b-a972-2ab7d35256a9

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Understanding Hive/HBD Payouts: Does the 50/50 Split Cause Sell Pressure?

Hive's reward system can be confusing, especially when it comes to the 50% HIVE / 50% HBD payout option. Many wonder if this creates automatic sell pressure on HIVE by converting tokens. Let’s break it down and clarify how it works.

How Hive Rewards Work

Hive’s blockchain allocates inflationary tokens to a reward pool for content creators and curators. Rewards are calculated in Hive Token Units (HTU) (~$0.003 per HTU, adjusted by HIVE’s price). After 7 days, authors receive their share with these options:

• 100% HIVE: All rewards as liquid HIVE (stakeable for Hive Power).
• 50% HIVE / 50% HBD: Half as HIVE, half as HBD (stablecoin pegged to ~$1 USD).
• 100% HBD: All rewards as HBD (rarely used).

Does the 50/50 Split Involve Selling HIVE?

No, there’s no automatic selling or conversion of HIVE to HBD. Here’s how it works:

1. Reward Calculation: A post’s upvotes determine its payout (e.g., 100 HTU ≈ $0.30 USD).
2. Direct Distribution: For 50/50, the blockchain mints:
   • 50% as liquid HIVE (e.g., ~8.33 HIVE for 25 HTU).
   • 50% as HBD (e.g., ~$0.15 for 25 HTU, pegged to $1).
   • Both are sent directly to your wallet—no market transactions.
3. HBD Peg Mechanics:
   • If HBD > $1, pure HBD is printed.
   • If HBD < $1, a HIVE/HBD mix may be used, but still no selling.
4. No Forced Sales: Unlike Steem, Hive doesn’t auto-liquidate via its internal exchange. Manual trades (3.5-day delay, ~5% collateral) are needed for conversions.

Example Payout (50/50 Split)

For a 100 HTU (~$0.30 USD) author reward:

Component	Amount Received	Notes
Liquid HIVE	~8.33 HIVE (25 HTU)	Minted; can stake for voting power
HBD	~$0.15 (25 HTU)	Minted; stable for withdrawals
Total Value	~$0.30 USD	No fees, direct wallet credit

Does This Create Sell Pressure?

• Directly? No. The 50/50 split mints HIVE and HBD from the reward pool, adding to supply but not selling HIVE. HBD reduces HIVE inflation compared to 100% HIVE payouts.
• Indirectly? Possibly. Users might sell their liquid HIVE for HBD/fiat, but this is their choice, not automatic. Most HIVE is staked (powered up), limiting sell-offs.
• Bigger Picture: Hive’s ~9.5% annual inflation and power-downs (5% weekly over 2 weeks) drive more sell pressure than reward splits. Daily rewards (~$200K–$500K) are a small factor compared to market trends.

Conclusion

The 50/50 HIVE/HBD payout doesn’t involve selling HIVE—it’s a direct mint from the reward pool. While user behavior (selling HIVE manually) could add pressure, it’s not automatic. For deeper dives, check Hive’s reward docs or track HBD’s backing on hive.supply.

What’s your take on Hive’s reward system? Share below! 🐝

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Posted on October 27, 2025. Data based on current HIVE price (~$0.136 USD).