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RE: HIVE inflation reduction: thoughts on the next hard fork

in #witness4 years ago

How about burning the funds in the DAO instead? It's not really working, which is a major reason why the token price is so low.

Lastly, my experience with tribes has shown me that high percentage distribution through a tribe is bad, but having just enough to give people a taste is great.

The distribution of what exactly? HIVE rewards?

I disagree that we should cut hive inflation and post rewards to zero. I just think we need to cut the whole thing drastically. If you thought the halving is good for business just wait and see what the eigthening can do for you.

HIVE is not Bitcoin. Bitcoin's value proposition is to be an inflation hedge. Investing in Bitcoin is betting against a broken financial/economic system where central banks are forced to overprint currency. HIVE is a utility coin on the Hive blockchain. It will be gobled up in no time if there is growth. Growth is lacking because either 1) the time for tokenized social media/online communities hasn't come, yet 2) not enough development is being done 3) or there has been a failure of governance on Hive.

#3 is not fixed by further centralizing power. My guess the reason Hive isn't growing as much as it could is a combination of #1 and #2. This is so radically new that many obstacles for adoption still exist. Also, while some interesting new second layer projects have been launched, a critical mass hasn't yet been reached.

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Meanwhile people are literally KYCing themselves to put GIFs on Parler. The market for censorship resistance has never been bigger, Bitcoin is in a bullrun, the fiat printers are going 'Brrrrr' and Hive is struggling to hold 10cents.

With so few trying to make accounts it's also near instant now... so that currently isn't the problem either.

Lack of a smart contract layer and therefore hype for future projects is the only thing left. People invest based on fundamentals and hype, ROI here is negative... and the hype is gone because we can't be much more than a social platform with out a real smart contract layer.

I agree with everything except for the part about the DAO. The @hive.fund account does not release new hive to the market. It only dishes out HBD. We can make the case that it contributes indirectly to the selling pressure if those HBDs are converted to hive but the amount that is distributed via proposals is small compared to what is printed via rewards.

Currently the lack of markets for HBD make it practically imposible to reduce the selling pressure of hive. People need to convert or trade their hive dollars on the internal market instead of selling them directly on exchanges.

The @hive.fund account does not release new hive to the market. It only dishes out HBD. We can make the case that it contributes indirectly to the selling pressure if those HBDs are converted to hive but the amount that is distributed via proposals is small compared to what is printed via rewards.

Sure, it's only 10% whereas the content rewards are 65%.

Currently the lack of markets for HBD make it practically imposible to reduce the selling pressure of hive. People need to convert or trade their hive dollars on the internal market instead of selling them directly on exchanges.

It's traded against BTC on Upbit and Bittrex.

https://www.coingecko.com/en/coins/hive_dollar#markets

The problem with the lack of exchanges for HBD is that not everybody can use the existing ones. Both require KYC and on Upbit you need to be a korean national or use the branch for Indonesia. Bittrex is a USA exchange that has very stringent requirements to use. So most users are unable to trade them directly for BTC. Either they use a third party like blocktrades which carries an additional cost in fees or they exchange for Hive and then sell that on another exchange.

How about burning the funds in the DAO instead?

Nice idea.