It's always interesting to see different perspectives on HIVE as a token. Lately, we've been seeing some chatter on Twitter about HIVE and a lot of people have 0 understanding of how it actually works.
I have always been bullish on the Hive ecosystem from a technological and community point of view. I've been on this chain for a while and I've seen how adaptable, flexible and resilient not only the blockchain is but the community is.
Our community has stuck through thick and thin. Moments where it looked like we weren't even going to make it.
In the end, we prevail. Always.
But that is a story of community. That is a story of technology.
Sometimes those stories don't align with an economic story. Today, let's focus on that economic perspective.
HIVE: Will it Ever Recover or Die in the Bear Market?
The HIVE token is an interesting one. We have an economy unlike any other. With users, witnesses and content creators earning the token for various activities across the chain.
We also have HBD which acts as an on-chain stablecoin and now pays 20% APR.
Some people are debating a lot of the mechanics on HIVE. Some people have said we should get rid of the content creator/curator rewards pool. Others are saying we should lower the HBD stablecoin APR.
@dalz puts out some fantastic content about the economics behind Hive and HBD. I think it's quite obvious that having HBD at the 20% rate makes the Hive economy a lot more attractive to the outside world.
One thing that Hive has always lacked is a good outward facing image. Most people think of us as some kind of cultish following around a small market cap token.
HIVE is small relative to the broader crypto world but we have a lot of really amazing technologies here and projects that have built amazing things.
Why is HIVE Not More Valuable?
I think its safe to say that the tech and dApps on Hive are severely undervalued. As an ecosystem, we are severely underpriced in the market.
BUT how do we fix that?
You need to bring in capital from the outside. You need VCs. You need institutional money. You need MORE retail investors.
That's how you grow the market cap of HIVE.
In my opinion, there are a lot of different ways to do this. 2 of the ways that I tend to think will have the most profound impact in the coming years are:
- Resource Credits
- HBD
Resource Credits
RCs or Resource Credits are Hive's equivalent of gas fees. Instead of them being a one-time feed that you pay from your wallet, they are rechargeable credits that you get for holding HIVE POWER.
The more HIVE POWER you hold, the more rechargeable Resource Credits you get each day.
As a project owner, RCs have some value already. LeoFinance is working on onboarding a lot of people and we delegate RCs and HIVE POWER on a daily basis to allow those new users to transact.
RC pools / delegations are relatively new on the Hive blockchain. These things will begin having a much more profound impact in the long-run as more projects and dApps actually start onboarding new users.
If LEO onboards 100,000 new users, RCs are going to become incredibly valuable. As a project, we already hold millions of HIVE POWER but we may need to acquire millions more if RCs start to become demanding.
Now imagine 5, 10 or 25 projects that try to do the same as LEO... Now we have to compete for RCs.
HIVE will moon, trust me.
HBD
HBD is the hot debate. Some people don't like the 20% APR and others think it's a saving grace.
I believe that it's a HUGE success on Hive. It's a marketing stunt as much as it is a way to build up our economy.
Some people think debt is bad.
Some people think giving out passive APR is bad.
Those people clearly haven't seen companies and governments grow to behemoth-level economies by issuing debt.
The key is issuing debt in a smart, conservative and growth-oriented manner.
If the Hive ecosystem brings in whales with tens of millions of dollars by paying a measly 20% APR, is that not valuable to the ecosystem?
Imagine that many of these whales come in for the 20%. Then they start poking around at HIVE. They start seeing the growing use case of RCs. They start seeing the Hive projects who are trying to build massive economies of their own.
It all feeds unto itself.
I'm starting to sound like @taskmaster4450.
The 20% APR on HBD has gotten me really excited about HIVE as a token once again. RCs have always been a long-term play to me, but HBD seems to be a quick-hit that we can deploy to bring some real whales into the game.
I think it's vital that we not only keep this APR but actually leverage and market it to a broader audience of investors.
Look at @dalz's new tool and you'll see only ~6% debt. The overall HBD supply has actually been contracting or barely growing during the reign of the 20% APR.
This shows us that the debt is completely under control. Actually, issuing more HBD will help a current issue that whales have which is the difficulty to buy and stake HBD / sell HBD when they want to.
An illiquid market. We are far from a debt problem.
I believe RCs will play a major role in HIVE's future but I also think the 20% APR economy that can be built around HBD will bring massive amounts of institutional-grade money into this ecosystem and I am all for that.
What are your thoughts? Drop a comment below!
About LeoFinance
LeoFinance is a blockchain-based Web3 community that builds innovative applications on the Hive, BSC, ETH and Polygon blockchains. Our flagship application: LeoFinance.io allows users and creators to engage & share micro and long-form content on the blockchain while earning cryptocurrency rewards.
Our mission is to democratize financial knowledge and access with Web3.
Twitter: https://twitter.com/FinanceLeo
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Whitepaper: https://whitepaper.leofinance.io
Our Hive Applications
Join Web3: https://leofinance.io/
Microblog on Hive: https://leofinance.io/threads
Delegate HIVE POWER: Earn 16% APR, Paid Daily. Currently @ 2.8M HP
Hivestats: https://hivestats.io
LeoDex: https://leodex.io
LeoFi: https://leofi.io
BSC HBD (bHBD): https://wleo.io/hbd-bsc/
BSC HIVE (bHIVE): https://wleo.io/hive-bsc/
Earn 50%+ APR on HIVE/HBD: https://cubdefi.com/farms
Web3 & DeFi
Web3 is about more than social media. It encompasses a personal revolution in financial awareness and data ownership. We've merged the two with our Social Apps and our DeFi Apps:
CubFinance (BSC): https://cubdefi.com
PolyCUB (Polygon): https://polycub.com
Multi-Token Bridge (Bridge HIVE, HBD, LEO): https://wleo.io
Posted Using LeoFinance Alpha
My thoughts remain what they have long been:
In order to draw Web 2.0 users into our Web 3.0 ecosystem, we have to outwardly offer things that appeal to Web 2.0 users. It's basically marketing 101 — you have to meet your customers where THEY are, not where YOU are.
The previous biggest success "bump" we had was Splinterlands. WE know what it is, here... but outwardly it was a game pitched to gamers. It had ease of access: You pulled out your Visa/Mastercard and suddenly BOOM you had a Hive account. Even our son the gamer has a Hive account. He could care less about blockchain, decentralization, crypto or anything else... but he's into MTG and thought Splinterlands was a cool attempt at creating something online.
I believe the future of Hive lies not in what we ARE (blockchain, decentralized, crypto, etc.)* but in what we DO. Blogging? Sure! Threads? Sure! Gaming? Sure! YouTube-ish video? Sure... when 3Speak gets fully ramped up and running and turns their attention OUTWARDS. Commerce? Again, we have HiveList, but it's just a grain of sand at this point.
It's easy to slide into writing an entire essay on this... but "short version," we have to "pitch" what someone who knows nothing of Hive would find really cool and worth investigating... not what WE think is really cool... because we're already here!
=^..^=
A 20% APR on a token that is sitting at major lows is not much of a incentive. There needs to be a promise of onboarding and monetary inflows for that to be realized. The fact is, active user numbers have been stagnate for years and that's what matters.
How many whales have signed up for the 20% HBD passive earnings? Not many if any. Since the beginning users have been talking about potential, but haven't been able to make those positives talking become a reality. Hearing the dream over and over is getting lame. No one likes a broken record.
It's getting old hearing about all the potential, while the numbers that matter remain the same. Really, what has changed is that the users from richer nations have decreased over the years, while the users from poorer countries have increased. This is not a positive...
Truth be told, the staking for power creating an Oligarchy is a huge problem and is a big factor in keeping the platform from major adoption. If it's pay to play and those with the biggest purses have the majority of the power, Hive doesn't seem like a better alternative to much. In reality, it just reminds many of the corrupt systems currently in place that hold us down.
The latter points are what need to change, because the continual building of new options that mimic the mainstream ones are not working. On top of this, as more central authorities crack down, because crypto is a threat to the power fiat gives them, we need better and more decentralized exchanges that allow us to cash out easier with fewer middlemen.
As long as turning Hive or HBD into fiat is a multi-step process, the tokens themselves aren't as enticing to earn, because it's easier to redeem your grocery store points than use Hive or HBD in the real world where it matters.
I think you all are looking in the wrong places to help us grow and that has been proven with the stagnate numbers through all the updates and new options added over the years. It's too much work to get your foot in the door here, because it's about building relationships more than adding value to the platform and finding your way into a (voting)circle rather than creating quality content.
Youtube is remaining strong, because it's a store of knowledge for people to use to increase their knowledge and skills and we need more of that here. Pictures of a giant garden, instead of detailed blogs about how to achieve that garden yourself is not going to bring users to Hive. We need to be where people come for useful info, not just pretty pictures, a place to buy power nor where equal say is nonexistent.
Hive really doesn't offer anything new. It just offers the worst part of how Central Authorities function. We need to offer something new and fresh to fight these failed and unsavory features that keep us from becoming a healthy and decentralized society. Throwing around the word 'decentralization' is hollow when the main feature creates centralization.
https://leofinance.io/threads/josedam/re-leothreads-javu19jg
The rewards earned on this comment will go directly to the people ( josedam ) sharing the post on LeoThreads,LikeTu,dBuzz.
I want Hive to be stable.
Institutional investors would make Hive more volatile.
Of course everyone who got here first will obviously make money.
Volatility is still bad for user retention and fairness of distribution.
Of course I agree with 99% of what you said so there is that.
Personally I don't think we should try to get institutional investors.
Such events will just be an inevitable outcome of critical infrastructure developments and dapps.
from what we have here compared to other projects we should be sitting at $1 or so. So many dapps and a big community... I guess marketing is one of the ways to make more people aware of it
I still believe in hive and I think more folks, which now reduces their portfolio from other coins can enjoy no fees during sending hive out of exchange. Personaly for us, who are here long time low price of hive is good for earning more hive from blogging. Who knows, maybe when I found some time I will back to make daily blogs. Is way more tempting to me earning much hive from making posts during bear market.
I think, we should market the capability of the chain and not the rewards, because distribution of rewards is always debatable. A view based curation would probably build a good outward facing image, because that way we bring in more viewers and some of them step inside after viewing for some time. So primarily we should focus on selling what can be done on the chain instead of how much you can earn, because earning can never be consistent. HBD interest is all together a different game , so there we can pitch the idea of earning interest.
wonderfully put! loved the read.
The time will come when we rise together. Keep building no matter what!
Hive is a platform for Web3 development - a universal back end database for the decentralised internet.
Long term growth is created by new applications and uses that drives real demand for the HIVE token (for RC, voting rights etc).
Investment will follow usefulness.
Everything else is mindless speculation.
You fundamentally misapprehend what Hive's unique value is.
It is NOT to become a blockchain Facebook, Twitter or Youtube. That ship sailed with the crypto ad ban.
It doesn't need mass adoption (and frankly I wouldn't want that mass of idiots on traditional social media to come here).
Hive's blogging and community aspects and its financial aspects are secondary to its unique role as a self-sustaining decentralised public database and notifications mechanism.
Its user base will grow as those use-cases grow.
Proof of Brain via rewards for content was only ever intended to widely and fairly spread the Hive token to create true decentralisation.
Splinterlands, eXode, PodPing and Keychain show the way to Hive's true future.
We don't need or want the morons of TikTok or other mindless "influencers" here.
We want more developers to discover what Hive offers them.
Good luck, most those have already seen Hive and said, "fuck that"! The masses don't give a shit about the tech, period. You ppl that think they do are why they aren't coming. You miss the whole point and don't understand basic psychology.
Hive doesn't want or need the masses. Psychology is irrelevant.
You simply don't understand what Hive is and where its future lies.
Read my full post.
https://peakd.com/hive/@apshamilton/hives-unique-value-the-trifecta
No, you don't want the masses. but many do, because they think it'll bring in investors, which in turn will increase the value of Hive. So, you can't really speak for Hive in general.
Wonderful
Wonderful
I am very confident it will rise , thanks for sharing
I like HBD these days. Who else offers 20% APR on a Stable coin ? Nobody.
I think if the public knows about the underlying consensus mechanism of Hive and have faith in it, that could help. Marketing Hive as a truly decentralized blockchain and all the good stuffs that precludes it from being a security could be critical.
!PIZZA
$PIZZA slices delivered:
@cryptothesis(1/15) tipped @khaleelkazi
Lol if people are already losing their shit because hive went below 30 cents what would happen if it hits 10 cents like it did a couple years ago?
I don't think VC money is good for hive. I think creating more useful tools and services is a sure way to go. I am also big on marketing and collaborations. This is something we've not been doing or doing well for ages.
Give is not like every other crypto project propped up by VC money and fake promises. It is a grassroots project. The people who use it determine, to a large extent, how far and well it grows.
Hive needs the correct marketing to educate everyone who doesn't understand what Hive is. RC's will be a game changer when we have the numbers here. Quick one off the topic with Leodex as it hasn't been doing what it normally does opening up showing the rewards page. This is important for the vote multiplier and was wondering will this be fixed or are you busy developing it?
Then think in the posibility that APR on HBD savings depend on the reputation.
Only more than 70 get a 20%
more than 60 get a 15%
more than 50 get a 10%
more than 40 get 5%
lower than 40 get 0%
You raise some interesting points about the future of the HIVE ecosystem, with your attention explicitly drawn toward Resource Credits (RCs) and the Hive Dollar (HBD).
Starting with Resource Credits, you've correctly identified their value for project owners. Their utility is straightforward: they enable transactions within the network. With a system that recharges RCs based on the HIVE POWER held, the mechanics seem well-geared for incentivizing participation and growth within the Hive network. However, we should consider the potential complexity this might bring for new users and how to mitigate any friction in the onboarding process. If you're correct about the potential growth of the platform, particularly in terms of new apps and users, then the value of RCs could skyrocket.
Regarding the HBD, the 20% APR is indeed quite enticing. Offering such a high return can attract substantial capital into the Hive ecosystem, especially given the relatively low-yield environment of other crypto and traditional assets. As you've identified, the critical challenge is managing the debt from issuing HBD. You rightly compared it to how companies and governments leverage debt to finance growth and expansion. However, for companies and governments, there are generally solid tax revenues or income streams backing this debt, which provides a certain degree of security to debt holders. In the case of HIVE, the backing of the debt is a bit more abstract and relies heavily on the trust and perception of the Hive community and the broader market.
What's clear from your commentary is that the future of Hive will be primarily determined by how well the community can balance economic incentives with user experience and the sustainable growth of the ecosystem. While there's still much work to be done, your optimism and the community's resilience should go a long way in helping to navigate these challenges and ensure that Hive continues to evolve and thrive.
Finally, community engagement and broader marketing efforts to improve Hive's image will be crucial. The tech and dApps developed on Hive are valuable and have great potential. Making this known to a broader audience will help attract much-needed capital from institutional and retail investors.
Hive has such massive use case, and is a complete blockchain with all the things one could find on any other sets of blockchains. I am amazed at how low the adoption is. Surely the world will stumble upon Hive in time and it will become a leader in market cap - at least enter the top 100.
The 20% APR is a double edged sword for attracting people.
Yes it's better APR than you'll find nearly anywhere. However it's so good that most people would dismiss it as too good to be true.
For me, earning HBD is an attractive thing because its price is stable for most of the time so this is like a blessing to stick with this platform. You are all good if not looking at hive price these days but appreciating HBD price
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Great post about Hive and its technology. I too believe that HIVE will brilliantly overcome this bear market phase. Some comments that this post generated are also interesting
I've made a detailed response to this post here: https://peakd.com/hive/@apshamilton/hives-unique-value-the-trifecta
!PGM
!PIZZA
!CTP
We should go VC hunting. These people are already in love with Hive, but they don't know it yet
Ohh, yeah alot of misconception across various platforms about Hive not actually on Twitter but what I will just love to point out is the extreme balance sheet and that's the valuation that tells it's the not gonna plummet as far as adoption continues that's actually one of the reason I'm really commending the effort and development LeoFinance as has been doing so far, cause I see LeoFinance onboard large number of new user you know what that mean.
Thanks so much @khaleelkazi bringing this up.
Someone sounds salty
DON'T TRUST ME. JUST LOOK AROUND."
I expect to hear about your billions of dollars in net gains from the massive short selling positions you must have (because nobody could possibly be that bearish and NOT have any, right?) at the next bear market fren
Posted Using LeoFinance Alpha