Hive and Layer Two Tokens Finally Getting It
Hive and Layer Two Tokens Finally Getting It
Hive has been around for a while but layer two tokens have actully been around longer than hive. Crazy right? but that's because of the whole steem takeover and split from it. These layer two tokens used to be few but have in the last two years really ballooned. The major issue is that I would (rough estimate) guess that 90% of them are totally worthless.
90% Worthless
There are few tokens that hold any weight really and those mainly stem around games more than anything else. That's because games hold some type of value as assets and tokens in the game have demand behind them. That's also the core competent of a lot of these tokens is simply off demand and new money coming in either via CC or other cryptos to buy their games assets.
All the other tokens though in terms of layer 2 social to me have no value besides just people wanting it and trading in demand of hive for that token. That's not really the best way to launch a new token but it's often what we see happen.
The Shift
However that's starting to shift as LeoFinance has been the first that I know of to implement some form of ads to generate revenue for the web3 social platform that will get returned back to the tokens value.
This is the first time new money as far as I've been able to tell will be earned and injected back into the system.
Now I'm sure I'll get hate for this but personally I feel like it needs to be said as a business person it's something that constantly bugs me about the Hive blockchain. That's the sheer abuse of the DAO for dumb things or projects that aren't needed.
Sure I agree it should be used for things like keychain as there's no way to really generate revenue besides blogging about the updates but it's also a core piece of the hive ecosystem along with core development. But other things like films, race cars and that mix of things should not be funded from this including ANY games or layer two projects besides seed money to get started.
Seed money helps development and builds to the ecosystem but it's then up to that game or layer two to generate the revenue and figure it out if they want to survive.
For instance there is no reason why 3speak shouldn't be earning revenue right now from video ads and or at least some type of revenue system internal or external to help fund the project and create value in their token.
Now on the flip side of that people will say it's a web3 decentralized project so we don't want ads. Ok that's nice but you have expenses of which have to be paid and those payments are simply a negative on the price of hive or HBD instead of it being treated like a real business or app and generating its own revenue to not only fund the project but to also bring value and pay their content creators.
Applying Web2 to Web3
This is why twitter runs ads, youtube runs ads and every other social platform runs ads. It allows the company to expand, pay its devs but the thing it lacks (in most cases) is paying back the content creators AND users of the platforms. Without content creators and without users viewing that content, interacting with it and viewing the ads the platform would be nothing. Yet on web2 all you get are shadow bans, banned, limited reach, asked to pay more money to reach your own followers and more.
This is where I believe the shift of web3 happens.
Web 3 to me is where a social platform allows the user to say what they want to see and don't want to see via following or muting someone. While ads are not targeted at the moment there's also no reason why a ID tag that is decentralized and anonymous be created for a user that could target ads to that "person" aka computer to serve up targeted ads.
This blend is the perfect thing we need to start brining crypto projects into real web3 solutions where content creators and users are rewarded for their time on the platform. It's also decentralized in nature via community voting and not a single business, it's up to each user who they want to interact with and I'm sure more is on the way.
It's time for business and blockchain tech to really start coming together and build amazing things. It feels like we have been stuck in a constant meme cycle instead of good projects for the last few years and it's time for that to change.
Will we see a hard shift once everyone sees the success of LeoFinance over the next few months?
Watch them slowly kill themselves by their hands, its crazy when people say this and fail to realise that if they launched a business tomorrow, they'd seek ways to "promote it" so if everyone were to not want ads, who would watch, view or buy your shit? The DAO? Who funds the DAO again?
https://leofinance.io/threads/view/alokkumar121/re-leothreads-q3znphhc
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Ads can be intrusive. I would probably not mind them if we don't start using remarketing tactics like the ones Facebook uses. No one on Hive needs to know what websites I visit when not on Hive. As long as the ads aren't algorithmic, then okay. However, advertisers typically want a return on their investment. Why would advertisers buy ads on Hive when they have more reach and engagement on Facebook and YouTube, and have the opportunity to reach the demographics they wish to target through retargeting?
The advertising game is highly competitive. If advertisers don't see a return, they'll advertise somewhere else. Therefore, to be competitive, you'll have to implement the features they like on other platforms. You know, retargeting and algorithmic advertising. For that reason, I'd rather not see ads. I think we can find other ways to monetize our content.
They can be and there can be too many of them. The key is to find that balance but ads are required to fuel the business because it's not free to run a website. In particular one that has video and one that is highly active such as twitter.
I understand the business challenge of needing revenue that translates into profit. I'm a business owner too, so that challenge is very personal. But I have never advertised. The reason I don't is because I know I can get clients with content marketing. Since I'm a writer, that's an easy, low-cost way to obtain clients. Plus, I have a few other strategies that work well. But if your business is a product-oriented business or not based on writing, then it gets more challenging. Podcasters and video creators can use their skills to attract viewers and clients. But I admit the Web2 subscriber model is broken.
The reason many YouTubers have a Patreon account is because they don't make enough money on sponsorships and Google advertising. The Patreon account supplements their income. By the same token, most content creators on Substack aren't making that much money, and it takes a lot of subscribers to really make a profit. Advertising is easier and pays better.
That said, I still prefer other forms of revenue. For me, advertising is a channel of last resort. I don't want to be in a position to where I'm altering my message to make advertisers happy. And I absolutely do not want to be bombarded with ads that track me all over the internet.
Hey man, I'm not in disagreement with your overall position, but I'd like to point out that using the DAO to fund a commercial advertising the strength of HIVE or maybe throwing our name and logo out there doesn't seem like a complete waste. I would agree a race car probably isn't going to target our primary demographic, though.