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RE: Shittokens

in LeoFinance3 years ago

The main challenge for Hive-Engine tokens (as for most crypto) is one of utility.

For example, with play-to-earn there is no real value created by catching virtual fish. If there is no market for the fish and no tangible benefit to anyone from catching the fish then there is no reason for anyone to invest in the economy to pay the fishermen. So the fishermen get paid with native tokens that no-one wants, except for new fishermen looking to buy fishing rods to hopefully make a profit catching fish. And the token value goes down (once the rate of new fishermen dries up).

For hive-engine tokens the utility gained from being able to decide which articles get rewarded is pretty thin (in my view). It doesn't create utility, it just determines which users receive any utility. The articles may well have value, but it is hard to generate an economy for that value, particularly if the articles are published for free.

That said, there is a lot of potential utility to be generated by a community. I think the NFT space is now leading in that area. That's probably the way I would go if I were launching a Hive-engine token. Sell a stack of NFTs with each NFT linked to a (delegated?) allocation of the token (potentially varying by rarity) and ransack the NFT space for community-utility ideas that bring value to being a member of the community. Then have PoB as a means for communication and rewarding moderation / governance / ideas / development.

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You explained Axie Infinity quite well there :p

Those are some great points and something I've been planning on doing with POSH PETS NFT soon. There needs to be utility from many viewpoints, sinks/spends and other sources of income than just printing tokens and waiting for speculators to buy your bags.