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RE: If I were Hive Dictator for a Day...

in #hive4 years ago

The changes that you propose to the distribution of inflation would not make any difference in attracting new investors...at best it would have a marginal gain.

Currently HP holders directly receive 47.5% of the inflation (15% from staking rewards + 32.5% from the reward pool). At this moment the inflation rate is ~7.62% so that equates to ~3.62%. With your proposal that would mean that stakeholders would get 67.5% of the inflation (65% from staking and 2.5% from the reward pool). That comes down to ~5.14% APR...hardly enough to divert investors from other projects out there.

The real APR is around 2.84x at the current staking ratio, so the current APR is more like 10.3% and your proposal would bring it up to 14.6%. An increase in the amount of hive staked would bring that multiplier down.

The problem is not how the inflation is distributed...you are mis-identifying the real issue.

The best performing asset over the long term is BTC. What are the tokenomics of BTC? Answer, the miners receive 100% of the inflation and investors receive 0% of the inflation. Let me repeat that...BTC investors receive 0% of the inflation.

Not ot only that, every time a BTC investor makes a transaction they have to pay a fee to a mining pool. As a self contained system BTC is setup so that only miners profit from its use...not investors. And yet, Bitcoin continues to outperform everything else.

Why is that? People believe that it will appreciate in value over time (in fiat terms) because of its limited supply. That narrative creates demand.

What narrative can we push that will drive demand for Hive? That is the real question.

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