Now is a good time for a Hive reminder.
While most of the time Hive users are used to the price of HIVE languishing in the basement, when prices do increase rapidly, it seems to have a strong effect on many people. Of course, there is joy and elation that comes with increased value, but then there are also other emotions that arise, like regret. Selling too early, holding too long, or not performing the right actions consistently to earn before. When prices are up, many have the sense that they have missed out, and will react, often in less than impressive ways.
People can do with their stake as they wish, but when it comes to future earnings, well, that is dictated by stake. It doesn't matter whether the price of HIVE is up or down, the mechanics of the blockchain are the same. Yet, price does impact on behaviour of those with stake, and those without, and there is no uniform response. However, there are many generalizations that can be made, but one that is consistently observed is that people expect to earn, regardless of how they have behaved in the past.
I wrote an article a few days back about learning about Hive, but will assume that most people haven't done so. For instance, the reward pool fluctuates slightly, but regardless of the price, it stays pretty much the same. The reason is that while the value in other currency might shift, it is calculated in HIVE.
For instance, this is the value of the fund when I wrote that article:
And this is the value of the Reward fund now-ish:
Around about the same amount of HIVE, but 170K more in value. And it is from this that the rewards come, but the author and curation rewards are dictated by vested stake. But, all things remaining equal, if an account vote delivers exactly 10 HIVE and nothing changes between then and the payout, 5 HIVE will be earned in curation, and the author will earn 2.5 HIVE and 2.5 HIVE worth of HBD.
Going on that model, let's make it easy.
HIVE @ $1
5 HIVE Curation to voting account (distributed as HIVE POWER)
2.5 HIVE to Author (distributed as HIVE POWER)
2.5 HBD to Author (As liquid)
HIVE @ $10
5 HIVE Curation to voting account (distributed as HIVE POWER)
2.5 HIVE to Author (distributed as HIVE POWER)
25 HBD to Author (As liquid)
Only the amount of HBD changes, but the HIVE distribution is identical. So, this means that the author gets a liquid amount that they can do with what they want immediately, and some powered up as stake. While the curator gets an amount of HIVE that will take 13 weeks to make liquid.
Now, there are other games in play to consider. For instance, if HBD is able to hold the $1 USD loose-peg, it is easy to calculate what amount of HIVE it can purchase. And, this is where an author can make some decent gains to increase their stake, whilst still keeping it all on Hive. Because, if they are earning more HBD when the prices are high, and then lets say 1 year from now the prices are at half the amount, they can buy more HIVE back than they earned.
I am trying to keep this simple for my head too.
So, let's say in that year, HIVE is worth 10 dollars and nothing changed all year (wouldn't that be nice), and there were 100 authored posts, each earning $100. Then, this model fits:
100x
5 HIVE Curation to voting account (distributed as HIVE POWER)
2.5 HIVE to Author (distributed as HIVE POWER)
25 HBD to Author (As liquid)
Now, lets say that there are only a voting account and an author account.
After the 100th post pays out, each has earned an identical amount in value, but one has all powered up, and the other has 50% of the value liquid.
Curator
100 x 5 HIVE = 500 powered up (@10 worth $5000)
Author
100 x 2.5 HIVE = 250 powered up (@10 worth $2500)
100 x 25 HBD = 2500 liquid (@1 worth $2500)
Now for the purpose of this illustration, the very next day HIVE flash-crashes and loses 50% of its value and drops to $5. Now, the curator has 2500 worth of value, and the author has 3750. At this point, the author decides to buy 500 HIVE with their HBD. And then the price springs back to $10 again.
Curator
100 x 5 HIVE = 500 powered up (@10 worth $5000)
Author
100 x 2.5 HIVE = 250 powered up (@10 worth $2500)
500 HIVE liquid = 5000 (@10 worth $5000)
Of course, this is an unrealistic scenario, but with the price fluctuations, it is possible for an author to use their HBD to take advantage and increase their holdings while still on the platform, using the convert or internal markets. Then, with the liquid HBD, it is also possible to earn 15% interest (set by witnesses) on that HBD while waiting for the opportunity also, with a near liquid (3 day unlock) position. And of course, that HBD that is liquid can be used to buy other assets, or taken off-site for spending or trading into alternative tokens.
To each their own.
And, this is very important to remember, because while you might have assumptions and expectations, on Hive what you know or don't know, and how you behave or don't behave - is your responsibility. You can post what you like, or develop what you like, but whether it gets supported by anyone with stake, you have no direct control over. You can influence it in various ways though, which in general comes down to topics, quality, interest, interaction and behaviour.
But there are no guarantees.
Hive curators with stake tend to have their own standards for voting and downvoting. You might not agree with them, and they might be inconsistently applied anyway, but - they can do with their stake as they choose.
Regardless of price of the token, no one is entitled to future earnings, outside of what their powered up stake draws on the pool in curation. And, this includes witnesses. No one earning anything now should take it for granted and believe their are entitled to it, regardless of how long they have been on the blockchain. Support shifts focus all the time, because attention and preference is constantly changing focus also.
So, regardless of price, how you behave is up to you. And how you react to the behaviour of others, is also up to you. We all have good days and bad days, but if you are more negative on Hive than positive, and are constantly having bad days here, perhaps you aren't suited for the current environment. It is okay not to be, but it doesn't mean the environment is at fault. A fish out of water suffocates just as surely as I would drown in the middle of the ocean. What is great about Hive though, is that there are many places for a fish to swim, and many places for a landlubber to walk.
Taraz
[ Gen1: Hive ]
Note: While these kinds of things are obvious to some, they aren't known to many. Because of this, I want to introduce bits and pieces of basics, and also some of the behaviours associated around Hive, because there are new people coming in through various gateways all of the time, and it is useful to get a grasp of the ecosystem, without having to read guides.
I am not a fan of most Hive guides, unless it id for something highly technical, because the "help" they offer is generally pretty generic and unhelpful- and often misinformed about what actually works and does not. The average person doesn't need a huge amount of detail and are unlikely to apply most detail anyway. So, rules of thumb, basic directions and a bit of a story to tie them together, will go a long way to covering the needs of most users.
Through content creation at least, there is no fast way to wealth on Hive, and content creation alone is likely not going to be enough for wealth creation, without learning about all of the other mechanisms and influences in play, as well as the opportunities to empower ourselves. Our behaviours are our own.
Posted Using InLeo Alpha
This is a good reminder series for a lot of people. I remember when I first started on the platform. It was at the peak of the bull and some of the numbers you saw floating around on posts seemed too good to be true. Actually, back then they were unless you had the stake to support it via bid bots! I hope this helps people understand some of the mechanics here.
Yep! Just think about all those gains made by the owners of bidbots, risk free.
The little ripple on hive prices really made people to notice them. I saw little murmuring in binance community pages....they were curious about the price rise....it is strange for them as it is fluke, but for the regular user who contribute on daily basis is a reason to smile. I joined here very little insight and now flowing in whatever way possible...never took nit negative but enjoying the stay is what is more importsnt.
And this is only a little ripple. Hopefully, since it is one of the few that are up the last day or two, people will dig a little deeper.
Thanks for sharing! Interesting knowledge - makes sense that Hive remains unchanged.
The system is actually incredibly well thought out, even so still far from perfect.
Thank you for writing this, yes this is way more helpful than reading the Hive docs :) I have been focusing on staking all the author rewards right away by changing payout on my posts to 100% HP and it has been a good strategy while HIVE price was low. But now it seems it might be better to switch to 50% HP 50% HBD?
Also I have some HBD, I was playing Hive Pumps where I would switch to SWAP.HBD when Hive pumps, but now I am stuck in HBD, seems like I might as well stake it for 15% as HIVE will probably not drop to 30 cents any time soon?
It depends a bit on what you are looking for. The stake will earn guaranteed curation, but you might be able to trade the HBD for a higher gain. I can't tell you which is better :)
Yep. I stuck what I had in savings.
It's incredible that HIVE has risen like that, even crazy how fast it did.
The reward fund you showed almost doubled in price.
And that is in three days. There are times it can go 5x in the same period of time just about :)
I agree with what you said. Nothing is certain in the Hive blockchain. It is a place prone to change and surprises. All witnesses can change in a month. The HBD interest rate can change in a minute. Etc. etc.
The closest thing to certain, is that the information on it will be immutable.
Or in a few hours, as seen on Steem.
This is a big one. People get comfortable as if it is certain.
I underestimated the strength of the Koreans in the HIVE token. 3 Sundays and 3 pumps. And every Monday, Michael Saylor buys bitcoins. Today I start buying again. And sell on Tuesday :)
They organize themselves well.
How do i even begin to appreciate you!? This is timely and the explanation is in clear terms that a young child would grasp.
I've been here for a little while now, but i get lost and confused half the time. I read posts rhat talk about Hive, the polls, and the technicalities but they're barely understandable. Being highly misinformed, i just realized that i have been making some mistakes but I've learned a thing from this one and will be sticking around for more guides and insights. I really want to thrive on Hive and i am willing to put in the work. This will be helpful for me.
Again, thank you, Chief!
Even I can understand it :)
I wonder whether the price of HIVE will stay here or go up; or this is just another pump, which has been longer than previous ones.
of course hard to say, but it might keep heading up just to piss me off, before dropping back to a baseline for a while until mid-year. But, I dunno!
I'm a green hand, can you teach me more about hive
If you are willing to read a lot regularly :)
Of course I'd like to, but I'm a little confused
Agreed... its useful to have little reminders, I've been here 4 years or so, and I've learnt a hell of a lot, but I'm pretty sure I've forgotten plenty along the way!
I did vaguely remember that the proportion of the rewards changed relative to the price, so this was a pertinent reminder today, thank you.
I've seen plenty of talk about powering down to make the most of the price fluctuation, but honestly I can't be bothered to faff around with that. I try to be sensible when I buy and when I save, but I'm certainly no day trader. I think now the hive price has gone up, its better for me to save whatever HBD I can muster for now, and see if I can build that up a little ready for whenever the price dips
(...because the price will always dip at some point, but hey, thats me... the eternal pessimist!)
My struggle is to find the entry price on MEXC for short-term gain. As for HP, still too small to power down and sell.
Entitlement is the problem. Those who complain about the reward system seem to imply that they have a claim on the stake of big holders. However, when I check the HP of complainers, it is almost nonexistent.