@abipup could you explain to me why we go with a reward rate reduction rather than:
A new framework that gets switched on when Reserve Bonds are off?
I am asking because it is unclear to me what the benefit is of having an APY while Inverse Bonds are active (wouldn't backing increase drastically if APY is close to zero when we are under backing?).
Also, a little bit uncorrelated to the topic perhaps, but:
- Is there a roadmap in place that shows the policy teams' strategy to make the reward rate adjustments an autonomous process?
- Are there talks on how we market APY? To me, it feels more as a way to not get diluted, rather than an actual form of yield.
- (edit) Q: Shouldn't APY be based on: Reserve Bond Income + Premium Target?
Thanks in advance for clearing this up for me.