How did Hive did in March 2024 from an inflation standpoint? Let’s take a look!
The projected inflation for Hive for 2024 is 6.0% on a yearly basis, or 0.5% on a monthly basis.
Hive has a double currency system, HIVE and HBD, with conversions between them that add or remove HIVE from circulation on top of the regular inflation. Furthermore, the decentralized hive fund DHF, that serves as a DAO converts the HIVE that is in the DHF into HBD.
The @hbdstabilizer has also grown and it is playing an important role in the overall tokenomics, making conversions and trading on the internal market.
Because of this additional mechanics the HIVE inflation and supply can be drastically different in real time than the regular/projected one.
To be able to follow the HIVE supply we need to take a look at all the different ways HIVE is created, author, curation, witness rewards, conversions etc, then net that out with the HIVE burned from conversions, accounts fees, null transfers etc. To get the virtual supply we need to do the same for the HBD supply as well.
HIVE Created
Here is the chart.
The chart above includes:
- Author rewards
- Curation rewards
- Witness rewards
- Staking rewards
These are the regular ways new Hive enters circulation, and all of them are through vested HIVE, aka powered up. You can notice the slight fluctuations in the daily amounts that is connected with the virtual hive supply, or the base for inflation. When the price of HIVE is low, the virtual hive supply increases, and when it is up, the virtual hive supply decreases.
The thing is the conversions are playing a major role in the ecosystem. Here is the chart again, including conversions.
We can notice that the HBD to HIVE conversions are the dominant in the chart. This works in both ways and a big part of them is converted back to HIVE, especially through the work of the stabilizer.
The regular inflation is around 70k HIVE per day.
We can notice the drop in recent months. This is because the stabilizer has changed its funding from the DHF and has reduced the daily amount of funds it receives and sends them back to the DHF making less conversions in the both directions.
HIVE Removed from Circulation
Here is the chart.
The above takes into consideration six different ways of HIVE removed:
- Ninja Mined HIVE To HBD Conversions In DHF
- HIVE transfers to DHF and converted to HBD
- Transfers to null
- Null as post beneficiary
- New accounts creation fee
- HIVE to HBD conversions
The HIVE transfers to the DHF are now dominant. These are transfers made by the stabilizer. We can see a few spikes in the HIVE to HBD conversions (blue), with one occurring just recently. These were due to the increase in the HBD price. We can also notice the drop in recent months, same as the opposite conversions due to the low volumes that the stabilizer is doing.
Historical HIVE Supply
When all the above is added and removed, we get this chart for the all-time HIVE supply.
Up until August 2021, the supply was almost steadily increasing with a small fluctuation. Then a drop in the supply in September 2021. Since then, from time to time we can see some drops in the supply with the recent happening in February and April 2023. March 2024 ended with 428.5M HIVE in circulation.
HBD Supply
Here is the chart for the HBD supply.
The light color is HBD in the DHF. The HBD in the DHF is not freely circulating HBD and only enters circulation when payouts to the DHF workers are made.
HBD is being created and removed in various ways, but the conversions play the major role here in both directions. Other ways HBD is created are DHF proposal payouts, author rewards and interest.
We can see that after a downtrend in 2022, in the last period the HBD supply is very stable around the 11M to 12M range.
In the last month the HBD supply has decreased from 12M to 11.7M HBD.
Virtual HIVE Supply
When we add the HIVE equivalent supply from the HBD to the HIVE supply we get the chart below.
The light color is HIVE that in theory can be converted from HBD at the current market prices for HIVE.
We can see that the virtual supply fluctuates a lot, mostly because it is tied to the price of HIVE. As the price of HIVE drops, the virtual supply increases and the opposite.
When we zoom in 2023 - 2024 we get this:
In 2023 and 2024 we can notice a steady numbers in the virtual HIVE supply because the price has been relatively stable in the period. The regular HIVE supply has slowly increased in the period.
Projected VS Realized HIVE Inflation in 2023 - 2024
This chart tells the story of the new HIVE entering circulation in 2023 – 2024.
There was a downtrend from the beginning of 2023, up to March 2023, when HIVE was deflationary, but since then the supply kept growing, with some small drops, and we are now slightly above as projected and realized.
Monthly Inflation
If we plot the monthly inflation in 2023-2024, we get this.
This is a long term trend for the monthly inflation. We can notice once in a while a negative inflation happening. This is when there are a lot of HIVE to HBD conversions.
In the last month the Hive inflation is at 0.84%.
In terms of absolute numbers, the HIVE supply in March 2024 has increased from 425.2M to 428.7M, adding 3.5M HIVE in circulation, while the projected one is around 2M.
Yearly Inflation [%]
The yearly, projected and realized inflation looks like this.
Last year 2023 ended with a Hive inflation of 5.7%, when the projected one was 6.5%. From the first three months of 2024 the trend is for 2024 to be around 6.9%, while the projected one is 6%. But it’s still very early, will see how it will go.
Net HIVE Created by Category in April 2024
Here is the new HIVE put in circulation by category for the month.
Conversions are at the top in April 2024 with 1.6M. This means that more HBD was destroyed then created, slightly reducing the supply of HBD and increasing the HIVE supply. Conversions are the main variable that is changing the Hive inflation and when they are positive the inflation is slightly above, or when they are negative the inflation is bellow the projected one.
The curation rewards are on the top with 880k HIVE. Next are the authors rewards with an 460k HIVE added.
Some HIVE was burned for @null as beneficiary and account creation fees.
Note that authors rewards are paid 50% HIVE, 50% HBD, and the HIVE share only is at 480k, while approximately the same amount was paid in HBD equivalent.
All the best
@dalz
Posted Using InLeo Alpha
Interesting. But wat could be the specific reason for this decline in the last month?
Do you think HIVE is self-adjusting token in the context of supply, that is why it trades in a close range and even during the bull cycle, it can only produce a spike to correct later on. Do you think that virtual supply acts as an internal stabilizer for the HIVE price?
Yes, clearly. HIVE price volatility is a third of Bitcoin's
Yes, it appears to be so.
Thank you.
That is a lot of speculation .... cant really know
Okay
Relatively slow growth with not too many months going into negative affect which is good indication in stability. Thanks for update!
It had been a long time since real inflation was above projected inflation. In reality, it is still very much in line with what was expected.
This is so super detailed...what an awesome chart
It actually looks like as day goes by, the inflation keeps increasing and increasing
"Inflation" is used here in a non-rigorous, non-scientific way. What increases is the total supply. "Inflation" could also mean "the speed at which supply is increasing" (first derivative) and should be decreasing. Anyway, all these parameters are defined in the protocol. No surprises. If the number of users and usages increases, it should compensate the increase in supply
I'm guessing conversions are tied to the price of HBD recently going well above $1.
That is very interesting. It has been a while since the realized has gone over the projected. I guess that is why the current Hive price has been low. People are taking advantage of it and converting their HBD to Hive.
Inflation can be clearly seen here…
Thanks for the stats
We are also seeing that this project is being controlled very well for a long time especially controlling its demand and supply is not so easy.Your post has increased our knowledge.
sharing is caring
hive has showed stability which is a good thing.