Theoretically the money that we pay Hive 'employees' should be less than the value they brought to the network, so it doesn't matter if they cash out. Users who hold are just a bonus.
Posted Using LeoFinance Beta
Theoretically the money that we pay Hive 'employees' should be less than the value they brought to the network, so it doesn't matter if they cash out. Users who hold are just a bonus.
Posted Using LeoFinance Beta
How does that work? I think you understand economics better than me 😆 feel free to link me to something, I love your posts but I've missed a bunch.
It works the exact same way it would work with a corporation. Corporation pays employees a wage, that wage is a huge expense, but the value derived from the work is greater than the compensation allocated.
The big difference is Hive engages in a lot of "loss leading".
Meaning we take a lot of losses and give a lot of money away,
with the hopes of luring more capital to the platform.
Corporations do this with sales, we do it with upvotes on content worth less than the payout.