Hi @gtg,
Thanks for your vote and question.
It's important to clarify the distinction between the fees generated from transactions and the purpose of the DHF grant.
The fees we collect from transactions are primarily used for the ongoing improvement and maintenance of the product. This includes launching new features, regular updates, and covering operational costs to ensure the platform remains efficient, secure, and user-friendly. These fees are crucial for the long-term sustainability of the project.
On the other hand, the DHF grant is specifically aimed at covering the initial development costs of the Hive CrossDEX. Building a robust DeFi infrastructure from scratch, especially one that doesn't currently exist on Hive, involves significant upfront investment in terms of resources and manpower. The grant allows us to undertake this extensive development work without compromising on quality or scope.
Moreover, our vision extends beyond the initial 6 milestones outlined in our proposal. The grant helps us lay a strong foundation, but the journey of enhancing and expanding the DeFi infrastructure on Hive is an ongoing process. The fees generated will support this continuous evolution, ensuring that we can keep adding value to the Hive ecosystem over the years.
We believe this approach balances the need for initial support with the long-term viability and growth of the platform, ultimately benefiting the Hive community.
Thank you for your engagement and for allowing us the opportunity to explain our funding structure.
Isn't that the whole point of owing a business/launching a product that's for profit? Take a risk in the hopes that the product succeeds and the revenue from that exceeds the cost to develop and maintain the product?
Hi @rishi556,
I appreciate your perspective, and you raise a valid point about business risks and rewards. Indeed, launching a for-profit product typically involves risk-taking with the hope of future success. However, for a project like Hive CrossDEX, the scenario is a bit different.
Developing a comprehensive DeFi infrastructure for Hive is a substantial undertaking, requiring significant investment in resources, time, and expertise. While transaction fees will eventually sustain the platform's ongoing maintenance and improvement, the initial development phase presents considerable financial challenges.
The DHF grant plays a crucial role in this early stage. It enables us to cover the upfront costs and kickstart the project, which would be challenging without community support. This grant isn't just about funding. It's about community involvement and ensuring that Hive CrossDEX aligns with the needs and expectations of the Hive community.
Our goal is to build a platform that thrives commercially and significantly contributes to the Hive ecosystem. With the DHF's support, we can achieve this balance, creating a product that benefits the goals and objectives of both TeraBlock and the Hive community for the project's long-term success.
Thank you for engaging in this conversation and helping us clarify our approach.