Burning HIVE! | Jan 2021 | How much HIVE is burned and how?

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(Edited)

Hive has been around since March 20, 2020. Let’s take a look how we are doing when it comes to burning HIVE.

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The initial option that was built in for burning HIVE was the promote option. On the old chain there was a promote section tab, that was mainly not used by almost anyone. Now this tab is no longer on Hive.Blog so the initial idea for burning HIVE is not available now.

Peakd have developed their own model for promotion and burning HIVE and it seems that it is used a bit. Not on massive scale though, but yet a start.

Other options for burning HIVE is the cost for creating a community (3HIVE) and making proposals. Another thing that burns some small amounts of Hive is the tipping option also provide by Peakd. A small amount of the tip is burned in order to prevent abuser.

On the old chain there were a few initiatives for burning tokens, out of which the most notable the @burnpost experiment from @smooth. This initiative is not running now on Hive.

Finally, authors can set @null as beneficiary to their posts and burn Hive in that way.

The period that we will be looking here is March 21 till January 8, 2021

Transfers to @null account

Here is a breakdown by date for HIVE transferred to null.

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A total of 11k HIVE transferred to @null account in the period.

From the quick analysis I did on who is transferring HIVE to null, most of these cases are Peakd promotions and proposals. There is a cost for making proposals. I’m not totally familiar with this but there is like 100 HIVE cost for proposal, and at other times 50 or even 25 HIVE. I guess it depends on the value of the proposal.

On average in the period there is 1k to 2k HIVE sent to null per month.

Setting @null as beneficiary

Another way for burning HIVE is setting @null as beneficiary. For the not so familiar what this means, it basically sent the rewards for that post to @null, burning them.

Here is the chart.

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A total of 7.1k HIVE transferred to @null as beneficiary account.
This chart is pretty much random. Usually when some of the popular large stakeholders set @null as beneficiary, it creates some significant amounts sent to null from those rewards.

Note: For simplicity I have converted HBD and VEST rewards to HIVE, so the numbers of beneficiaries are approximate and not accurate.

Total HIVE Burned in the period: 17k HIVE


If we consider the HIVE inflation with around 2 million new tokens created per month (depending on HBD prinitng), the sum above is very small. There is some effort for implementing systematic solution to bunr HIVE, like the way Peakd is doing it, but this has obviously not scaled.

Top 15 Users that Burned HIVE in the period Oct-Dec, 2020

Here is the table for top 15 users that burned HIVE in the period.

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The list is a compilation from transfers to null and setting null as beneficiary. HBD converted to HIVE as well.

@splinterlands are first here, probably setting up @null as beneficiary for most of there posts. @memehub and @roelandp follows with proposals costs.

The top users that burned HIVE is a mix from null as beneficiary on posts and the cost for creating proposals for the dev fund.


Some thoughts on the burning

The amount of HIVE burned in the period is very small. Promotions, creating communities and creating proposals for the DHF fund are the ways that burns HIVE directly. Setting null as beneficiary on posts also burns some HIVE.

Burning HIVE is mainly about reducing inflation. Inflation is a long debated topic here and the point is that it can be easily offset by growth and demand. The official inflation is around 7.5% now but as we have seen the HBD conversiosn are almost doubling it. 24M more HIVE created per year vs few ten thousands burnt.

The above methods are not creating any significant amounts of HIVE burnt. Some other options are implementing ads and burn HIVE from the add revenue on the main frontends like Peakd, Hive.Blog or Ecency.

Another interesting method that now is appearing is locking/burning HIVE from Hive based projects. 3Speak is paving the way for this with their tokenomics and SIP pool. The idea of ownerless pools is appearing in some other DeFi projects, where funds are locked into a liquidity pools forever.
If more of the apps build on HIVE create something similar this can create some demand for the token and create a base floor value for it, creating a long term sustainability for the project.

All the best
@dalz

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28 comments
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Some other options are implementing ads and burn HIVE from the add revenue on the main frontends like Peakd, Hive.Blog or Ecency

I think, Leo follows this model and pretty success ?

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Buying them of the market first is the most important thing.

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@dalz, Hope that soon the days will come when everyone will going to feel the Scarcity Of Hive Token Supply. Let's hope for the best and let's enjoy these Bullish Trends. Stay blessed.

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Burning tokens is a BS.

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LOL ... Yea I guess the logic will be why print them in the first place
The ownerless pools is an interesting concept as it provides functionality (deep liquidity pool) and removes tokens from circulation at the same time.

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I think that burning tokens simply by setting null as beneficiary is BS too.

But using ad revenue and buy back tokens from the open market so that they'll be sent to null is a completely different story and pretty useful too if you ask me. In short the leo model.

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Hey great post and interesting to see that it's so little amount burnt. Just also want to mention that you spelled @memehub names wrong in the post.

Keep up these great post, it gives a great insight in how Hive is really doing

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(Edited)

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Hey crokkon.
The transfers are going down yes ...from 2k in april, may 2020 to 1k in december.
The beneficiaries are random with months as well .... more or less same results.

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What could happen if the inflation is reduced?

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This is a long debated topic and the only way to find out is to do it :)
I personally I'm not a fan of reducing inflation, maybe just tweaking the HBD

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I love your posts these days, thanks for teaching the old newbs like myself lol

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Well if it wasn't for splinterlands it looks like hardly any hive would be burned. I'll admit though I'm not really ready to burn my own lol. I do vote on some of their posts however which in a way I guess helps burn some hive.

I'd be curious to see how much Hive could be burned from ad rev. I'm going to think it's going to be a drop in the bucket honestly but every bit can help. reducing the inflation however seems the easiest but that also means people staking the coin will earn less which means some people might power down creating another influx of hive on the market that drives price down.

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Buybacks from ad revenue is one of the most efficient model. It create buy pressure. The other ways of burning are not as efficient, and reducing inflation is not good imo

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From the data you have exposed us it is evident that burning money by sending to @null is absolutely not productive. Maybe we could introduce the burn of small quantities, even fractions, on the operations and transfers we do on the platform?

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Burning tokens for the sake of burning is not very productive IMO.
Buybacks and then burning, create direct pressure on the market and it a better way.

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@ dalz
I am unfamiliar with these terms and the importance of burning Hive.
Thank you

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I think there is far more burning going on we cannot account for, there are people with autovotes curating that have long lost their keys lol so that's also inflation taken out of the system never to be used again. I'm sure as it grows that lost accounts with autovote become a bigger source of burned inflation

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Yes... basically lost funds, because of keys.... this is true for all blockchains and Hive probably as well.... who knows how much is lost in this way

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Burning would be better though as this would reduce the total amount of HIVE (including staked) and increase upvote value (though this would be minimal?)

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Whats the amount of Hive created daily?

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70k to 80k depending on the hbd conversions

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Time to push people into burning that much Hive somehow :)

I've got a bot up randomly giving people LEO if they burn some Hive, but so far it looks like nobody has gotten anything yet(the more they burn the higher the chance of getting some LEO, https://hiveblocks.com/@leolottery).

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