I Just Increased My ELIXIR Stake. It's What Changed My Mind
Initially, I had 53 ELIXIR tokens staked. I thought that was enough, since staking 50 ELIXIR in the wallet is all it takes to earn weekly dividends.
A while back, I took a closer look at the whitepaper. I ended up adding another 20 ELIXIR.
Was this FOMO?
Or is there something truly compelling about ELIXIR?
The First Thing That Caught My Attention
For those who don't know, ELIXIR is a token created by @bulliontools. The token's purpose is to provide Hive Power (HP) to the @nectarbytes account, enabling manual curation of high-quality posts on Hive. What drew me in wasn't the token price, but rather the business model. Unlike most Hive projects that focus on token price, ELIXIR takes a different approach.
ELIXIR prioritizes increasing Hive Power (HP).
Essentially, all proceeds from token sales are used to build up Hive Power (HP) for manually curating quality posts, which in turn generates curation rewards.
Why That Really Matters
The simple logic behind it is this:
More ELIXIR Sold
↓
More Hive Power
↓
More Curation Rewards
↓
Weekly Distribution
↓
More Value for Stakers
So, as more ELIXIR is sold, stakers will gain more value by receiving larger weekly dividends.
ELIXIR: A Project That Rewards Activity Instead of Inflation
I don't know much about other Hive projects, but I do know that most of them mint new tokens to reward their supporters. ELIXIR is different; it rewards its supporters based on curation activity.
The ELIXIR whitepaper states that 90% of curation proceeds are distributed back to eligible stakers—specifically, those holding a stake of 50 ELIXIR.
I Also Like the Limited Supply
The supply of ELIXIR is strictly limited to 200,000 tokens, with a predetermined distribution: 100,000 ELIXIR reserved for sales and the other 100,000 for delegation rewards.
This means there is no special allocation of ELIXIR for the creators or the project account itself—unless they purchase it with personal funds.
A note:
Scarcity doesn't guarantee success.
But an unlimited supply usually isn't attractive either.
The Pricing Strategy Is Interesting
Next, let's look at the sales pricing strategy.
ELIXIR employs a tiered pricing model.
Currently, the price of ELIXIR is 1 HIVE each. This price applies to the first 10,000 tokens.
Once the initial 10,000 are sold out, the price will increase to 2 HIVE each.
For full details, you can read the ELIXIR Whitepaper directly.
https://ecency.com/@nectarbytes/nectar-whitepaper?referral=ekads
This means early supporters pay less than later buyers.
This post is not a solicitation to buy ELIXIR; rather, it outlines the project's economic design. Always do your own research before deciding to invest in crypto.
What Finally Made Me Buy More?
So, what made me finally buy more ELIXIR?
Certainly not because of the hype.
Or FOMO.
Nor was it a desire to get rich quick.
However, after understanding how the project works, I felt comfortable increasing my stake from 53 to 73.
By doing so, I earn passive crypto income in HIVE every week and also help support the curation of quality posts on Hive through manual curation by @nectarbytes.
https://ecency.com/@ekads/how-to-earn-crypto-passive?referral=ekads
I'm Still Aware of the Risks
While there are many interesting aspects to the ELIXIR project, I realize there are always risks involved in any crypto investment I make.
The price of the ELIXIR token could plummet at any time.
Or the rewards provided might change.
And there is no guarantee that the ELIXIR project will remain profitable forever.
Closing
Well, that’s the story of why I finally decided to increase my ELIXIR stake.
Have you ever invested in a project because you understood its idea rather than because everyone was talking about it?
Share your experiences in the comments.
This is my entry for the ELIXIR Writing Contest.
https://ecency.com/@bulliontools/elixir-writing-contest-is-live?referral=ekads
I invite my friends to participate: @rayhanhiveman, @angeluxx, @katriel1, @nabbas0786, @suisver
Cover image created using ChatGPT
Elixir logo banner credited to @bulliontools
Before and after image based on @nectarbytes update, edited using ChatGPT