Few have a genuine understanding how powerful the incentive model truly is. Most of cryptocurrency overlooks this fact. However, it is the powder keg that will most likely push cryptocurrency into the forefront of society.
It is ironic that Hive is one of the most overlooked blockchains there is. Since the start, this was one of the main premises that it operated upon. Over the last few years, we saw this expand to the second layer. At some point, the world is going to comprehend what is taking place.
Of course, this is not exclusive to Hive. Throughout cryptocurrency, we see this. Bitcoin, for example, was built on this idea. After all, miners are incentivized to purchase equipment and spend vast sums on electricity. There, naturally, it is for a chance to get a block reward. Nevertheless, we see how successful this is.
If Bitcoin can incentivize people to spend large sums of money on specialized computer equipment, what else could be done with this model?
In this article, we will take a look at it.
A Complete Reversal In Our Thinking
To fully implement this, people are going to need to adjust their thinking. In fact, since we operate under an economic framework that values scarcity, undoing a lifetime of thought is required.
Yet, the second this is done, an entirely new world opens up. Instead, of scarcity being the driver, true abundance is. For this reason, tokenization is going to take over. We will see tens of millions of tokens designed, providing people with incentive for anything we can think of.
Here is a quick example:
Gyms charge a monthly membership fee. This is done automatically and the owner makes money whether one works out or not. Actually, since there is no wear and tear on equipment, those who do not show up are more profitable.
How about we switch this model? Instead of operating from that premise, why not reward those who do work out? Provide an incentive to show up regularly. Insurance and medical companies could be brought in to help support the token by providing utility.
Ideas such as this could be brought into many of the existing companies. If they would be open to a completely new way of doing things, they could use cryptocurrency to radically expand their businesses.
Unfortunately, this is not where the innovation comes from. It is unlikely that tokenization by the Fortune 1000 will comes from the likes of Starbucks. Even a Google is going to be slow to embrace this.
Instead, it will be the true innovators who provide the experimentation. Of course, there is a chance that those start ups end up completely disrupting some industries.
This is where the stagnant face some risks.
Those who are quick to adopt a different way of thinking are going to enjoy a lot more benefits. Some major corporations are going to be like Blockbuster and Kodak. They will be too slow to respond.
Staking Is A Voting Mechanism
Corporations can put the idea of staking to use. This is a build in voting system they can access to make decisions. Here we can see how the "community" can replace some of management.
Netflix or Disney could use token staking as a way to determine which shows to fund. Those who own the token are given access to the different pilots that come out. The holders stake their tokens on the shows they want to see receive money for production. Here is where the customer base is making decisions on behalf of the company.
Haven't companies been trying to figure out what consumers want for decades? Here is where they can directly access that information.
The idea of a Decentralized Autonomous Organization (DAO) can also be implemented. Any corporation can establish their token system as a DAO, opening up a new governance model. Here again, the DAO could be accessed for decisions, with the token enabling the "voting" on those decisions. Some of the profits from said decisions could be fed into the DAO, perhaps by purchasing the token off the open market.
Of course, all of this could be integrated as payment or discounts on the different products and services offered.
Hive Already Offers This
As we know, Hive is already engaged in some of what is discussed here. The Decentralized Hive Fund (DHF) is already in operation. It was present from the day the chain was forked. So far, it offers real time voting on any proposal that is made asking for funding. The community votes its stake to determine where the daily pool is allocated.
The world is going to be transitioning to one based upon incentive. This is clear when looking at the general trends that cryptocurrency is already offering. Instead of operating based upon the old business model, we are going to see innovative ways to incorporate tokens into the process.
It will give users a stake in what is taking place. For now, the regulators and politicians are stuck in the old mindset. It is why we need to keep expanding further out, with more projects tied to decentralized chains. At the same time, open source and redundancy is vital. We need to ensure the attack points are minimized.
Overall, this is a much better option for humanity. If companies what our attention, they are going to have to reward us for it. No longer should it be acceptable for companies to simply extract from their customers/users.
This is a mindset people need to adopt. Your time is valuable and if some broadcast network is going to make a fortune off you time to view a project, the least they can do is incentivize you to watch.
Naturally, we know this is not taking place. Here is where individuals have to start taking a stand. Why should we support something that does not reward us for the time we give?
Obviously we should not.
It is time to being talking about the power of the incentivization model and how it is time for companies to start rewarding us if they want our continued patronage.
If you found this article informative, please give an upvote and rehive.
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If a company wants us fully active they have to reward us by providing an incentive model. That is the future we users dream of
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I have a feeling that, at some point, they are going to have to do that to remain competitive.
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Tokens are ideal for fans. They get a chance to earn income through the entity they admire and support. It can be a football team, an art movement, a sci-fi universe, or a pop singer. In addition to voluntary participation, a stronger bond is established between the fan and the entity as financial insentive comes into play. Until now, tokenization has been chiefly used for concepts created from scratch. (Splinterlands, e.g.) However, this concept can also benefit entities with a large fan base. Perhaps the lack of information technology and financial literacy required to use crypto infrastructures can be a problem, especially for the supporters of large-scale events like football and pop music.
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We can really engage in a major game of mental thinking about all this. What you describe is just the tip of the iceberg.
A lot of possibilities. It will require innovation and creativity. Where is that going to come from? We will see.
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This would be really great to see implemented. At least then people will have a say in which shows stay and which one goes. I’m sure a lot of people would’ve staked enough to have a say in these kind if matters.
This is a very important question people need to start asking. Everyone has 24 hours each day and what you do with each second of the 24 hours counts because you’re never getting it back again. Each second spent without a potential return is time wasted.
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Customers were taken advantage of for so long. We are now seeing the ability to change that.
We will have to see how it unfolds.
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It sure helps that people have some small rewards by actions they do. That's the premise behind delegating stake to a curation project for example. Having a new layer of things that are part of life might even get more people into crypto. But there's a hard wall into changing the way of thinking. Let's see how companies that are only keen in making bucks will do with that. You named two good examples of late reactions, but could we expect that to change in the short term? It would certainly be interesting to see what choices these companies make for their future.
That is the idea. We are taking the idea of multiple streams of income to entirely new level. Soon we will be rewarded for everything we do.
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That's the true basis behind the Universal Basic Income. I hope it comes to the point where some things can be fixed. Otherwise, we won't be able to use any of those rewards like ever.
Wait what? I wasn't actually asking for any donation or such things. I'm just commenting on something that I found interesting.
I'll see if I can put this to a good use.
It is difficult to imagine our future world without tokenization and of the ideas you mentioned. One space am really hoping gets hit by cryptocurrency's disruptive nature is the insurance companies, just can't stand those companies like the banks.
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That will be interesting. It is possible since insurance companies is nothing more than a pool with a risk assessment. We could replicate something like that with pool stakers getting the rewards.
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Airdrop some of your tokens every day for a year, then offer an insensitive to put those tokens to work.
Important to create use cases. That is where the explosion comes from. Right now, the biggest reason to have a coin or token is speculation.
We need to change that with utility.
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Upvotes on hive work that way
Even being able to post to Hive is a use case for the coin - Need to have RCs to post.
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I totally agree with your premise. Once people realize the value of incentivization, they'll flock to Web3. I'd be delighted if you'd review my book Cryptosocial: How Cryptocurrencies Are Changing Social Media. I include a robust discussion on the Steemit/Hive hard fork and how the latter came to be.
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With all the options and competition out there, people will choose the service that offers them the most. Just look at how the streaming service market is. There are way too many options and nobody will want to pay for a service they aren't getting much out of in a time of economic uncertainty.
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You need to change the core.
Anything made to run on the same system core, will fall prey to it.