In July, 5,225.73 HBD was burned and 24,569.72 Hive. This is total of around $10,000 USD worth of HBD/Hive burned in July. That's roughly $322 burned on a daily basis.
These numbers don't reflect the additional Hive Engine tokens burned as well. Due to how Hive Engine works, it is more difficult to calculate this, and Hive Engine token prices are mostly a fantasy as most will fall as much 50% by selling as little as $1-2 of it.
For example, LEO is biggest beneficiary of these burn posts and I estimate about 2,200 LEO is burned monthly. At a current price of around $0.0298, that's about $65 a month burned.
Why?
The burn posts give stake holders an alternative option to direct inflation. By voting on burn posts, you are opting to reduce inflation.
How does it work?
@buildawhale creates a single post daily with 12 comments below it. All author rewards earned on the post (including Hive Engine tokens) are burned immediately by the blockchain when the post reaches payout. The process is completely automated through the use of beneficiaries.
Isn't this self-voting?
Yes, it is self voting, but I receive no benefit as all the author rewards are burned automatically by blockchain protocol.
What about curation rewards?
Anyone who votes the posts, will receive normal curation rewards. These are not burned as authors cannot change this.
If you want to support reducing the inflation, feel free to vote one or all of the burn posts and its comments. If you don't want to, no worries, there are a lot of choices on where to place your vote.
If there was a 0.01 Hive base fee for every transaction, that gets burnt, do you think that would help the chain at all or if anyone would even care to pay this fee? I mean we can play with the numbers a bit but these burn posts are super impressive. Imagine if that $10,000 was mostly sell pressure, with our illiquid pairs not sure how long the price would sustain.
I’m not sure it would make much of a difference. The fee is usually low enough it’s fairly insignificant. It would also go against one of the main tenant here of no fees.
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BEER.Hello @themarkymark why my account got downvoted @buildawhale even though I have been removed from blacklist from @hivewatchers ?
This has become my understanding, developing from long consideration of the token burn mechanism purported to reduce inflation. Inflationary currencies promote distribution, as Ben 'Helicopter' Bernanke has demonstrated. Hive's primary impediment to increased value isn't it's inflation, but rather it's lack of adoption, which token burning discourages.
Lack of adoption is an interesting one.
Inflation is a glacier. We have a reward pool, so think of a pool of water. Voting is like draining that pool, forming a river. Near the banks of the river you have several whirlpools, holding the water. The rest continues to flow downstream. Some escapes the whirlpools and flows downstream. Some might find itself in another whirlpool for some time. Eventually, all the water reaches the waterfall.
So yes. We've created a scenic river many enjoy. Letting everyone play in the water has been/could be an attraction.
Adoption stops at that waterfall. We've not built a dam there to harness the energy. There's a big lake forming down there and nobody wants to swim in it. All that water or rewards got dumped over the edge.
Get people to play in that pool, way down there, and we've once again established adoption.
They will carry that water back to the pool, as they're buying it to support the products creating the waterfall. Precipitation. Now you have mass adoption.
Majority of those playing in the river right now have no clue what I'm talking about. The glacier is melting away.
Burning doesn't inhibit mass adoption, due to lack of rain. It's just preventing a small amount of water from escaping one of the many whirlpools.
Something like that...
Indeed.
That's a lot of HIVE. In less than four months, you burn an entire me.
I have formerly participated in the token burn posts, but my understanding of currency has evolved such that I now reckon wider distribution would more benefit Hive than increasing extant token value.
Were I yet convinced of your oligarchical membership I would yammer about the plot to prevent adoption in order to prevent domination of governance by acquisition of Hive by off platform investors. Now I reckon your interest in the token derives from your personal plans, which seem not to be based on gaining wider distribution and more users, but to focus on increasing the scarcity of tokens to increase the value of those you hold. My own fiscal policies are also consistent with my stake, so I'm not flinging accusations, but simply noting that our policies are consequent to our resources and plans.
Thanks!
I’m largely trying to counter poor dhf spending and the increased sell pressure it created. Also the fact we have a microscopic user base but are creating like 90k hive a day.
I sincerely appreciate the fact that you are doing something you reckon will improve things without tromping on any toes. I don't harbor any illusion that you should be helicoptering your Hive tokens - or Hive should that 90k - to Fakebook bots, or on Twatter. That might pique curiosity in one of the bot farmers and bring a new user to the Hive, but it will produce selling that will put pressure on price, and that would be bad for you and Hive. However, I don't have enough tokens to helicopter any, or much care about the price (as affecting me personally).
I note we both care about the userbase of Hive, and Hive isn't gaining 90k users a day, nor does the current environment seem to intend such growth. I think we'll agree that no matter how many rally cars Hive funds through the DHF we're not going to generate growth in users nominal to justify that inflation. I think there are changes that can be made to make the environment attractive to new users, but the recipients of that 90k (that fund the rally car) will continue to oppose those changes.
So, who is getting that 90k? Off the top of my head without checking any of my assumptions I think of the top 20 witnesses, then the Smooths and Blocktrades of the DHF, then the Real Wolves of Trending, all of whom I assume have ~100k accounts across which they share the love. Are there any particulars you are aware of that pin the 90k tails on the right donkeys? I should look and compare curation rewards to author rewards to see which churns out more of that inflation, and wrap my head around the DHF and how conversions of HBD to Hive impact that 90k, but I didn't. However, I wonder if you know these things already so post these questions to you to save time if you do.
Thanks!
Reward pool gets most of it, then witnesss, and finally filling dhf
Ok.
If I remember correctly it is
65% reward pool
15% staking
10% witness
10% dhf
HBD interest is additional inflation and a lot of the dhf funding is from the ninja mine not the 10%.
It seems apparent that the DHF cannot continue the rate of depletion ongoing. Since HBD interest has just declined by 5% it seems there isn't dedication to sustaining the proposals currently being funded with new debt from stakeholders capable of voting for it.
I appreciate the greater detail. I won't press further.
I find it a bit surprising that no sincere effort is made in marketing hive as a social media platform to attract new users. Its primary value is a social media platform, and it will always be compared with other social media platforms. The average users do not care if it is web 3 or web 2. Attracting new uses should be the primary effort and should be done by marketing.
Other social media platforms use AI tools and algorithms to attract the attention of users and display the content that has a high probability of user engagement and retention based on user activity which is missing on hive.
On a personal note @themarkymark can you tell me the reason of downvoting all my posts? What level of enjoyment do you and your @buildawhale bot get by downvoting my content?
Taking a closer look at your blogs, they are fine, it is just that you are self voting your own posts which is frowned upon here. That is it! Keep making good content.
Ok thanks for your reply.
Hi @themarkymark, I have been getting downvoted for the past month, is there any specific reason behind that?
!DOOK
Thanks for the info. I never really understood the burn posts before. Then again I never really looked into them either.
That's impressive 🙂
How do you see this? Is it going to help surge the price a bit?
I do a query each month to see.
$PIZZA slices delivered:
@bilpcoinbpc(3/5) tipped @themarkymark
Why are you downvoting my original content and why do you vote your own comments with multiple alt accounts 🤔
If want to talk contact me anytime @kgakakillerg