A Shift In Hive's DHF?

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(Edited)

Sometimes the biggest changes start with a single instant that can be pointed to as the starting point.

Many of us believe that Hive is rapidly moving to another level. Over time, this is what a blockchain should do. When things start out, they are highly centralized. However, those that are successful will consistently move in the opposite direction. Distribution and a spreading out is vital.

For the past few years, we saw this taking place. It is not quick but rather a slow and steady process. With the introduction of an ever growing layer 2, we are seeing things really change.

The Decentralized Hive Fund is a mechanism that was put in place after the fork from Steem. This is designed to fund projects that will help Hive grow. It is in keeping with the original intent of the ninja-mined stake that went awry with Steemit.

Funding depends up stake weight voting just like everything else with Hive. Some believe this is an issue since the stake can be highly centralized when voting. That is why what we witnessed in just the period of a few days shows a change.

@klye is a long time user of the platform, software engineer, and a Hive witness. However, as we can see, he is not close to being a consensus witness nor one of the "power brokers" on Hive.

klye.png

Nevertheless, in just a few days, the proposal was able to be funded, almost a week before it was to go live.

klye.png

So what does this project do and why is this such an important point?

The proposal, at least in part, addresses the issue of the power down time on Hive. This is a source of controversy so we will be looking at an application that can allow one to get his or her Hive immediately. The idea of @hive.loans is that one can get liquid Hive in return for what is powered up.

Why would someone want to do this?

Obviously, the first thing that comes to mind is immediate need. One has a crisis or something unexpected comes up, and cash is needed.

Another is the fact that traders often like to know this is a possibility. For example, let us say the price of Hive runs 70%. If one has a decent stake, the idea of taking profits could be in the cards. If the Hive is powered up, that is not possible. Of course, there is a charge for doing this but if one is locking in 70% profits, the fees are less of an impact.

This project is open source as evidenced by this post.

Here we see how what is being developed could be a pathway to larger integration. Any project on Hive will be able to integrate Hive.loans into its platform. This could lead to other use cases such as a larger lending or trading platform. The liquid Hive could be coupled with another token to create a system similar to Maker.

Funding Of The DHF

This is the first project that we came across which is looking to actually fund the DHF instead of solely taking out. In another article, I shared how this is a new model that could be adopted by the community. Outside core blockchain coding, perhaps most of what is concentrated on should have the potential to generate revenue for the DHF.

Here we see thinking that is aligned with the long term. Having a DHF that is continually receiving funding from successful projects means we will see the account extending further in the future. Unlike government projects which end up with nothing in them like Social Security, this can insure that developers down the road have access to what they need.

Of course, not every project will fit into this idea. Many deal with protocols and infrastructure which cannot generate revenues on their own. Nevertheless, it is a model that can adjust our focus and the thinking of developers when they put a proposal up.

Opening Up To More People

The key to all of this is inclusiveness. A blockchain that benefits only a few is not going to excel. For too long, this was the view of Hive (Steem). However, the evidence is starting to mount that things are heading in the opposite direction.

To start, we are now seeing a layer 2 that is providing additional wealth centers. A few projects are growing to the point where some have substantial holdings in those tribes/applications. The creation of addition wealth centers is spreading the holdings out, albeit not all in Hive. What this does is it creates the potential for individuals to take an interest.

Governance is an important factor in blockchain. DPoS is very straight forward: it all comes down to stake. However, as evidenced by this, it is not necessarily the stake of the individual doing something like putting up a proposal that is vital. It is the people supporting him or her.

All of this takes time. Yet here is an example of a relatively small stake holder who had an creative solution and proposal who was able to get funded in a matter of days. This will cover the costs of development on something that will benefit the community via the application and likely the DHF with additional monies.

Instances like this show us what is possible. Perhaps we call it a proof-of-concept in regards to the process. The application is obviously going to be rolled out but the truly groundbreaking moment is what else that took place during with this situation.

As they say, Rome was not built in a day. Each time we take another step forward, that is moving us closer to the ultimate destination. There is not one magical action that is going to instantly push Hive to the forefront. Instead, it is going to be the culmination of millions of actions taken over a period of a few years.

With the DHF, we saw a bit of a shift in the DHF. Let us see if we can build upon it.


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49 comments
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Excellent write up man. Thank you for the honourable mentions.

Perhaps I'm caught up in teh romance of it all, but it feels like the next few months will be pivotal around here.

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Well if that is the case, both of us are listening to Barry White albums. LOL

I agree with you, things are going to be pivotal with lots of changes taking place. I am not sure how many developers are actually tied to hive now but there is a lot. We are seeing projects popping up all over the place. Your idea is an example of one that came out of left field yet can have serious implications.

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pixresteemer_incognito_angel_mini.png
Bang, I did it again... I just rehived your post!
Week 43 of my contest just started...you can now check the winners of the previous week!
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Well honestly I wouldn't want to see hive powered down and the stakes being taken out, but then for external PR and adoption we need to give people the option to understand that in time of emergency they can take advantage of these @hive.loan option. Nevertheless the DHF isn't perfect by all means. It's better however than having the ninja mined stake. Let's see how it goes it's a nice one by Kyle

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The account is @hive.loans but I do also have the keys for the @hive.loan account around as well.. Will likely just set up a transfer routing daemon to send mis-typed account names to the right place. :)

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(Edited)

And who will fund the loans account ?

Where can we get that much of Liquid Hive?

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The community itself is the source of the lending pool capital.

Users will be able to post up lending contracts with variables of their choosing within certain parameters. :)

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smells like defi to me :)

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In a sense it's a lead up.. Got some ideas for projects after Hive.Loans that will flip the game on it's head even more so than this one.

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(Edited)

hope to see you make hive great again :P ( in the true sense of the word great )

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Instant power down won't sink Hive's price. On the contrary, it will incentivize investors to buy into it due to the fact that their personal funds won't be locked for 13 weeks. It's not like all of us will dump HIVE at $1. Some will probably won't sell for years. We all have different mindsets and goals in here and the system should be more flexible. This project will benefit Hive for sure. Same as Leofinance. Only a fool believes progress and diversification is bad for a project.

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Personally I dont think it will matter all that much on the price. People seem to make a big deal about it yet everything that was offered up as a reason as to why the price was falling, when corrected, did nothing to the price. The last was the EIP was bad so if we change that it will send the price flying since more people will be involved. It did not. I feel the same with the talk about inflation and the power down.

I can almost guarantee that if those changes are made, the price movement will not alter its course.

That said, here is a solution that does provide the flexibility to the system while also keeping the security that comes from a longer power down time.

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Very good read, and absolutely support!

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Majority of available resources should be put into Hive DeFi such as hive loans.

If anything Hive needs to focus on leverging existing social user base, which is one of the largest in Crypto.

HP needs to = value return for stakers. High token price is extremely important to longterm success.

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I think development and use cases is far more important. That will translate into high token price at some point.

Too many seem to want to just pump the price which is a problem. We need to get apps that people actually use.

With that, the sky is the limit.

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This is a cool project I believe.
I may not have had any issues with days of power down but someone once asked me what if you have an emergency someday and then realize you have to wait for some days before your locked up hive can be finally released? What would you do?

So I think this hive.loan is a good way to making things easily for the platform and it's users especially in times of emergency.

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I think most hive-stakeholders are forward-thinking people and won't miss out on a project that code positively impacts the hive blockchain.

I think kyle's project is awesome. I have clamored for such in the past. There is more incentive to hold hive. I don't even have to power down again. If I need to invest in something I believe will again value I will simply get a loan and payback at a later date. Value can flow from over places and back into the hive ecosystem.

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Especially since he mentioned above this is just a gateway into something more.

Looking forward to see what his other ideas are.

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He's a solid bloke is @klye - and this is a great project.

Hopefully it'll boost him up the witness rankings a bit more too.

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This is just one of many ideas that will flow into how we work on here. This is very much needed and definitely something out of left field. I really love the idea and thought that has gone into this idea and hopefully we will have some extra investors on Hive because of this. Glad you do these posts as you make it easier to understand what is happening around us as there is so much.

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It was unexpected and came up quick. Just another application that will be live in the next couple months.

A lot of great stuff is happening.

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Congratulations @taskmaster4450! You have completed the following achievement on the Hive blockchain and have been rewarded with new badge(s) :

You received more than 780000 upvotes.
Your next target is to reach 790000 upvotes.

You can view your badges on your board and compare yourself to others in the Ranking
If you no longer want to receive notifications, reply to this comment with the word STOP

Check out the last post from @hivebuzz:

Time to go on your Hive Tour
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You know that I have never seen the projects but I will take a look at it, maybe there is something very interesting to see there,
Well I hope this is successful or maybe it is already having it, just vast to see the price of a month ago and today almost doubled, something is happening as well as the volume that is being generated is on the rise.
Well, we hope that with the coming of the masses things will improve, I am invited to all my friends, today with tesla it is much easier since everyone knows tesla so I tell them hey you want to earn BTC by writing come to hive and then change it let's say that It is the hook but as people like it and taste it, hopefully they can continue in this magical world, with the tribes.
There were some disappointments but there will always be others that help us grow as I read or the foodie food token that is a great thing and who will not want to eat.

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The more use cases we provide to users, the more recognition users will have of Hive. No limits to the power of our ecosystem

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(Edited)

very good to see valuable projects getting funding quickly and with little drama for a change :)

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I am just happy to see that something has finally moved up past that project that was just holding the funds. I can't remember what it was called now. The baseline one that others have to pass to be funded. Hopefully some of the other legitimate ones can move up past that other one now too. I'd like to see DLUX get funded for sure.

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I think it is a great idea so I voted about it you promoted it in the Leo Market Talk thread. I think having more options is better than less. No matter what happens, your actual account is used as collateral to back up the loan and the profit helps fund HIVE. As long as the safe guards are in check, we can expect this to be economically sustainable. I do wonder how this application evolves over time and the possibilities it can create.

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Yeah I will be looking forward to some of @klye's future posts in terms of his further ideas with it.

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Wait till this one is built and working and I can move on to my other game changing idea. All depends on what others end up developing and if it gets adopted or not.

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Wait?

Hell it is already 3 days since you announced it. We already moved on presuming this is a done deal.

You developers operate on a slower time frame then us who want it all done now.

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I just hope more and more users will read your posts and use their stake to change the future. It's us now, there's no ninjamine stake, we have to decide how to go forward.

This is a great idea and I'm happy it got founded. It's a game changer.

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We will see what kind of proposals are put forth going forward.

It does open doors for Leofinance. Some of the applications down the road could be funded with a payback to the DAO.

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It's about time to see a proposal like this in DHF, I'm very excited about what's happening. Let's hope for more decentralization in the DAO and with marketing proposals which is what is missing.

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I remember Kyle from when I first started on ste...HIVE no idea why my vote wasn't on him before but it is now! Time to kick out those who don't really contribute to the growth of hive and start putting in those who do!

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Time to kick out those who don't really contribute to the growth of hive and start putting in those who do!

Without a doubt. We need to keep pushing the process and reminding people of how important governance is.

You are right, things will accelerate if we get a handful of people in positions who are doing what @klye is doing, helping to grow things around here.

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We really need to push people into witness spots which are actually doing something for sure.

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I've never done a power down but I think having a time frame of less than 13 weeks can only do Hive good and incentivize new investors to consider Hive.
In real life if someone proposes me an investment where my money has to be blocked for a certain amount of time I have to think very carefully before saying yes and the same goes for Hive.
Great project by @kyle
!BEER

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These next few months are going to some of the most intense, crypto is booming, several projects are all reaching completion, Awesome announcements coming in left right and center.

Good times indeed!


My witness node - Stream on Vimm.tv

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The proposal, at least in part, addresses the issue of the power down time on Hive. This is a source of controversy so we will be looking at an application that can allow one to get his or her Hive immediately. The idea of @hive.loans is that one can get liquid Hive in return for what is powered up.

Awesome news here. Sometimes staying glued to the second layer communities makes one miss the big news in the main Hive layer. I think with that development, we'll be having more investors flood to Hive especially with the awesome usecases now available and thriving communities.

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I hope this represents a shift and we have a chance to prove it. There is a great proposal by inertia, and he explains it in this post.

I hope it makes it through even if blocktrades decides not to vote. I bring it to your attention because a reblog from you can help spread the importance of the proposal.

Let's rally the community.

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