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RE: Hive Staking Rewards

in #hive5 years ago

I already told you that I liked the idea of being able to redirect a part of your inflation reward to another author as post reward. However, I have a few objections to your proposal.

a) Governance

I think the biggest objection is the impact of governance, short powerdown times = extremely dangerous for governance. This is two fold:

  • If everyone that powers up can participate in governance:

Easy way to manipulate governance with a high stake quickly and then leave quickly again (Makes an exchange attack more likely)

  • If only long powerup times can participate:

The overall stake participating in governance will shrink significantly making a 51% attack significantly more likely.

b) Incentive:

At the moment holding hive gives you an incentive to participate in voting and engaging on the platform. I agree that this incentive also leads to wrong decision-making but I also believe that significantly less people will engage and significantly more people will just enjoy receiving the inflation and do nothing.

If there is inflation, this should incentive people to engage.

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a) Governance

I think the biggest objection is the impact of governance, short powerdown times = extremely dangerous for governance. This is two fold:

If everyone that powers up can participate in governance:
Easy way to manipulate governance with a high stake quickly and then leave quickly again (Makes an exchange attack more likely)

Does this mean you didn't read my post fully? 😄

Here's what I wrote:

  • You decide that you want to take part in governance voting & DHF voting. However, you need to have staked your HIVE for at least 4 weeks to be eligible to take part in it. So you need to wait 2 more weeks until you're able to do that.
    • The reason for that is that individuals can't just buy stake (HIVE), overtake governance and then sell the stake again.

At the moment holding hive gives you an incentive to participate in voting and engaging on the platform. I agree that this incentive also leads to wrong decision-making but I also believe that significantly less people will engage and significantly more people will just enjoy receiving the inflation and do nothing.

No, I disagree. Inflation should incentivize hodling to stabilize the asset, which in return makes HIVE more attractive as there is less risk about it dumping hard. Why do you think MCO is so stable? Or why ETH is going to become much more stable? You need to have 32 ETH - currently min 4k USD. That's a lot for the average joe. At ATH, that's over 50k.

I did ready your post fully, but it seems you did not read my comment fully.
Either way you do it, it is bad for governance.

The only reasonable thing is:

  • The same powerdown time for all operations (To avoid splitting up stake).
  • Long powerdown time to stop exchanges from powering up to manipulate.

Like some people below pointed out already. Why should we hunt for those few thousand investors to invest in hive but have a shitton of competition but instead we hut for app creators and consumers to buy hive for RC etc.

The same powerdown time for all operations (To avoid splitting up stake).

Splitting up stake how?

Like some people below pointed out already. Why should we hunt for those few thousand investors to invest in hive but have a shitton of competition but instead we hut for app creators and consumers to buy hive for RC etc.

Well, they aren't really investors themselves, are they? So I'll take that opinion with a grain of salt. Also, there are far more than a few thousand investors.

Splitting up stake how?

If 50% of the stake is liquid, 25% is short term staked and 25% is long term staked. That's less stake then voting for governance.

Well, they aren't really investors themselves, are they? So I'll take that opinion with a grain of salt. Also, there are far more than a few thousand investors.

I agree with them. I don't want Hive to be a "object of speculation" but instead a useful token. That's the only way you establish a stable price on the long term on a token.

This way, it doesn't matter what the market sentiment is, the price stays pretty stable (compare it to FIAT). If it is a speculation object people will pump and dump and that is bad for developers.

What we want is a stable price that is dictated by the utility of the token. (For me mainly by the amount of RC). Thus, if there are 100k users here using apps, all of them will need RC to use the apps and the apps will make sure their users will be able to do so. That creates continuous demand and a stable price.