Hive Will Thrive When We Do Not Focus Upon HIVE

in LeoFinance5 months ago

The title sounds counter-intuitive, I know, yet it does show how important bringing out Smart Media Tokens (SMTs) really is.

Presently, the focus is on the HIVE reward pool. Honestly, it is really the only thing of any value right now so it makes sense. However, over time, we need to start to transition to something beyond it.

Before making a case in that direction, I must state a few things pertaining to the HIVE currency.


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To start, it is vital that HIVE always maintain a reward pool for content. The staking of the token plays into governance operations such as Witness voting, thus it needs to be as accessible as possible. Rewarding content helps to spread the distribution of the token out. Ultimately, we need to see millions of accounts holding HP.

We also know that HP is beneficial when voting for proposals in the DAO. Here again, we want all to be involved and a decentralized distribution will help to combat abuse.

Some have stated that HIVE should just be for the applications and businesses. I disagree with this. The idea is to decentralize the distribution to as many people as possible. The voting aspect of Hive, as more people are involved, will dilute the reward pool. By this I mean it will reward more users on a weekly basis, albeit with less per post.

The introduction of SMTs will allow applications and communities to tokenize their ecosystem. This puts the onus upon them to operate as they see fit. Eventually, the goal needs to have more focus upon the SMT than HIVE. Right now, HIVE is the main token while any other token is the gravy. SMTs offer the possibility of switching things up.

Does that mean HIVE becomes worthless? Quite the contrary.

HIVE is the token representing the base layer. It is required (in HP form) to interact on the blockchain. This is a valuable utility as the ecosystem grows in numbers. Millions of people playing games, posting, interacting, and doing whatever else the applications offer will all require Resource Credits. This can only be achieved by having Hive Power.

It also provides a powerful defense mechanism against what took place with Sun. As the overall token distribution flattens out across more users, the ability to take control lessens. We saw the result of what happens when there is an overwhelmingly large honey pot to access. Imagine for a second if the distribution was 1 million individuals with 350 HP apiece. Even if someone came in a got 35,000, which is 100 times the average, it still would be impossible to take control.

Thus, we can see that HIVE has an vital utility to the blockchain. The "long tail" shows how the accounts at the far end of the spectrum can hold enormous influence.


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That said, Hive is going to evolve into a diverse ecosystem. It basically can serve as a data structure and immutable ledger for many different types of applications. People obviously have different interests which should be rewarded. Naturally, we are not all going to agree with what that is.

We recently saw an announcement with the introduction of @dbuzz. This is a microblogging (Twitter like) application. Over the years, we watched a couple of attempts at something similar fail. Why was that the case?

In my view, it starts with the fact that it pits the quality content group against those who are looking for growth. Obviously, Twitter is very popular as well as being easy to use. If fossils like United States politicians can use it, anyone can. And with the monthly user base, it is evident that many are.

Of course, being rewarded for microblogging content could be very appealing. It is an easy way to get a large number of people interested. The challenge is that it is subject to tremendous abuse. We witnessed this on a couple of different occasions. Voting blocks and spamming were common as people tried to milk the reward pool. People would spam the network throughout the day simply to try and garner a few votes. We know with the automated comment spammers of the past, how profitable this can be.

The hard fork altering in the EIP changed this somewhat but we can easily see how it can happen again.

So what is the solution?

Here is where SMTs enter the picture. If we were all active with our different applications, focusing upon those tokens we were interested in, then what those people on DBuzz did would not be of great concern to most of us. Applications could monitor what showed up on their feeds, culling out those who were trying to abuse the system. At the same time, each of us as individuals can choose who we follow or not.

To exemplify all this in action, let us use Twitter as an example.

Suppose that application suddenly decided to post to Hive and created it owns TWEET SMT. Instantly, 330 million monthly users would be on the blockchain. There would be billions of posts done a day all using Hive as a distributed ledger.

Under this scenario, how much would each post earn? Obviously, most would get nothing more than dust. The upvotes from the majority of the people, would have next to nothing in the way of Hive Power. Thus, even if one received a ton of votes, the payout in HIVE would be very little.


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This would not make HIVE a primary focus for these individuals. Instead, their focus would be on earning TWEET tokens. There would be an assortment of Whales and Orcas on that platform who would be rewarding people with big upvotes. Again, unless they happen to have a great deal of HP, it would not affect that end of things too greatly.

Even though the HIVE payouts would amount to little on the individual level, collectively, it would take up a large portion of the reward pool. As it stands now, in this situation, it would likely eat up most of the pool simply by the sheer numbers. It would overwhelm the other applications.

Of course, this changes if Telegram, fresh off their loss to the SEC, decided to make a SMT for its platform of 400 million users. Instantly, on a collective scale, the Twitter people are not taking the majority of the reward pool as the Telegram people are getting their share also.

We can see how this keeps repeating itself as more users join. Obviously, I do not foresee either Twitter or Telegram becoming a part of Hive. I simply use this to illustrate things on a rapid scale.

What is interesting is that while the focus will not be on HIVE, the value of the currency would explode. With that much activity utilizing the network, the need is enormous. This would push the value up relative to fiat.

We also would see a system where, over time, millions of accounts would end up holding Hive Power, thus pushing the distribution way out. As larger accounts took profits during the price run up, we would end up seeing a greater flattening of the curve.

Right now, Hive is an ecosystem that is struggling to get users let alone the individual applications. Hence, we are in a situation where the tokens that are on here have little to no value. Some might hold promise, but thus far, have not really broken through.

Hopefully, as more people join the network through the different applications, that becomes more of their focus. Whether it is a game that offers hundreds of thousands of people in game assets, or a twitter like feature, having the ability to spread the Hive token out is crucial. It also will be a natural thing as some of the applications enjoy more success.

The reason why SMTs (or HMTs) are so important is because of the fact that having a token at the base layer offers a number of benefits. Because of the coding, they are instantly available if exchanges want to pick them up. They also are under the same governance mechanism as HIVE since they will be tied to the blockchain.

For this reason, I hope that these are high on the priority list. I know the developers are hard at work on many things and they were mentioned as being on the list.

It will be of great benefit to the community and potentially offers a radical shift in our focus. I believe, in the end, it will also resolve a great deal of conflict among the community.


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So you're saying the trending page needs to change and not be all about Hive

No it really has nothing to do with the trending page.

What it means is the trending pages on the different applications will be more important. Most of what is trending on other apps will not be trending on Hive and people wont care. They will be focused upon their rewards in that token with HIVE as a secondary payout.

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But that is really point of it? Am I right @taskmaster44Ole? So, what is the use of HIVE blog, for what reason? Enjoyable, interaction and fun is given. What is the main point...

True observations and recommendations. From the look of things major focus is on hive as a reward rather than hive as a community. There would be more growth in the community when there's a shift of focus.

Cheers!

The chicken or the egg. I think the community growth needs to precede the shift in focus.

After all, without an application having the userbase, there will never be any value in that token. This is the quandary. Numbers will change a lot of things and push things even further out from the center.

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I think micro-blogging concept integration will fail. The reasons cited by you are right. It'll create chaos in the platform. Is it possible to have different sites for such tokens not overlapping with hive blog?

I believe the front ends have the ability to block other applications from appearing on their front end.

Thus we see Actifit posts blocked by Leofinance, as an example. I imagine that Peakd has the same ability if they wanted to integrate it in.

Hive blog, in my opinion, since it is a community front end, should show everything. All the others can alter what is fed in and could block the microblogging app.

The bottom line is an application like that could bring in an enormous amount of users.

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I feel like there is already chaos on the platform. Not from any of the content but the obtuse way you access information or try a search query, find new content. It's unique compared to the rest of social media platforms and search engines in how it either doesn't work or has it's own set of definitions and functions that seem unique.

Searching in a search bar is meant to return search results. A lot of people might try to search something here like they do on every other site in the world and think it's broken and not worth pursuing.

Interesting update between what works and not in the hive, also what will produce a change of focus. Many hits here in this post. Thanks for the brilliant suggestions.

Wow, if a TWT SMT was successful that would absolutely be game changing.

Similar thoughts, it's not the size that matters, it's how you use it, like some people say. As an example, the Esteem dapp has the ESTM Token, which is used to reward from actions.

Also can be used to boost content, oneself or a friend, gift etc. That kind of attracts using the application more, so decentralizing a decentralized system should not be a bad thing.

Very true although I dont imagine the ESTM token has a great deal of value.

Imagine, though if Esteem had a million daily users. Then the token would be worth a great deal (depending upon the total number), hence might drive users to focus upon their ESTM rewards.

As of now, none of the secondary tokens have any value, thus the only thing really to get is HIVE. Hopefully that will change in the future.

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Payments in HIVE will amount to dust in HIVE token terms, but we don't know what can happen with the $ value (or purchasing power). Twitter adopting HIVE will certainly cause the price to pump a lot.

It is important to have abundance mentality and how we can create value to humanity outside, so that we are not a remote "tribe" on the net.

Very true. We do need to start to pull cryptocurrency into the "real" world as much as to just being online.

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all sounds great. smt would be great

I'M just tired waiting for SMT. we need to take one deep breath and decided throw everything we have and make smt happen or just focus on what we have.

I think we all are tired of the talk.

Before the Sun situation, they were on testnet so the majority of the coding was done. The only thing required is to hard fork it in once they are happy with it. Unfortunately, we have to get through this hard fork first.

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I'm earning as much extra tokens as possible

Not a bad idea. I think it is good approach.

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is there a time frame for SMT's (HMT's) ???

The developers that I heard mention it did not give one. I think they are hesitant because there are a few issues such as the next hard fork has to take place first and that will take at least a month after it is officially announced.

I am not sure about the development end of things. Before the Sun deal, there was a testnet already in place so most of the coding was done.

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thanks for the info. As our gaming community is growing. those would be great for rewarding players.

Always love your take on things.

Gaming really offers huge opportunities in the digital asset space.

I think it will be one of the industries that drives mass adoption. It is enormous, technically inclined, and accustomed to in game assets.

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Value creation is what will thrive lately whether its hive or any other project its all about the ideas that become practical and implemented in real life that's where the value will come from lately for sure !

SMT will not bring what people expect, the hype and always postpone have made people to not believe anymore about it.

i still wanna read the rest of your post as gawd it looks detailed. First wanted to ask about this:

To start, it is vital that HIVE always maintain a reward pool for content. The staking of the token plays into governance operations such as Witness voting, thus it needs to be as accessible as possible. Rewarding content helps to spread the distribution of the token out. Ultimately, we need to see millions of accounts holding HP.

HIVE reward pool remains a little more accessible via more HIVE in escrow with the hive dao. Previously this same amount existed as STEEM that was ninja-mined (aka owned by steemit inc and premined by them) so HIVE forked out this ninja-mined stake (presumably by forking out the user/s that held the ninjamine funds in their wallets?) and in turn escrowed the equivalent amount of STEEM owners of those account to keep them in a HIVE dao.

Am I correct or way off the mark? hard to keep up with all this blockchainsplaining sometimes, is all.

My question is this - is the escrowed HIVE going to provide enough of a benefit where HIVE is being equalised in distribution? From the outset of HIVE hf, there was no equality in distrubtion or equal accessibility from what I experienced. The same heavy bag holders on STEEM (well some of them) had an airdropped Lion's share of HIVE from the outset of HIVE hf too.

it needs to be as accessible as possible. Capital accumulates easiest and quickest by those that have the most so there will be limited or no, equal accessibility.

That's me being a Marxist, I thought I'd try it out for a change, no harm intended just havin' a Josh
Jolly good show, ta ta!

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Awesome

A shift in focus from the community to the coin could be detrimental as some users prefer the community due to recent events and updates.. the both ways are beneficial. I will practically love more HIVE

HIVE THRIVE could be the words of a great campaign and we need to help it develop on the right path. Community can bring so much help, hopefully some will listen and the right choices will be made.

Definitely agree!!!