Someone posed the question a while back and asked what is backing the ELIXIR dividends that go out weekly. It's a great question, and one that anyone should be asking of any token before considering buying it. What happens if something happens to dividends from curation and they don't come in? What's the backup plan? What's backing the token?
Honestly, for a lot of tokens the answer is... nothing. You're counting on a person's reputation and word. Depending on the person, those can be either incredibly reassuring or very concerning. We all saw what happened with BRO.
So what backs ELIXIR? For now it's about 2500 liquid HIVE. It's also this.
Silver. Gold. Hard assets. There's also my word. While that may not mean much to some, there is no price I will not pay to make good on a promise. I have a reputation that I keep my word and choose my words carefully, and that's priceless. Years ago I accidentally committed to buying a 1kg silver coin when I thought it was only 1oz. Instead of begging to cancel the deal, I sucked it up, moved funds and made good on the sale. I still have that coin even today.
https://hive.blog/hive-136819/@bulliontools/the-cost-of-keeping-my
Does this mean I'm backing ELIXIR with precious metals? No. I'm also not making it redeemable for precious metals. What it does mean is those concerned about liquidity, exiting, dividends, etc., should know if something happens I have funds available to make good on my word. It may come at a cost, but it's a price I will always pay to keep my reputation pristine and above reproach.
Buy ELIXIR and stake to receive HIVE dividends!
Delegate to @nectarbytes to earn ELIXIR!
https://tribaldex.com/trade/ELIXIR
https://hive-engine.com/trade/ELIXIR
Buy DUO and stake to receive HIVE dividends, tip others, have your posts curated, and grow Hive!
https://tribaldex.com/trade/DUO
https://hive-engine.com/trade/DUO
Do you like stacking gold and silver?
It you could somehow back it with silver, that would be interesting!
It certainly would!
The only real thing standing in the way of that would be the logistics of someone wanting to take delivery.
!BBH
!PIZZA
!ALIVE
That could be arranged as long as the participants agree to pay for shipping. Easier said than done I suppose though.
True, and if they wanted to pay for insurance or not, and they realize if it's shipping internationally there'd be customs fees.
Backing it with gold (or goldbacks) probably would make more sense as it is the more stable one. One can dream..
That's good to know, my friend—very good. Hey, do you have a one-kilo silver coin?
Yes, I still have the coin. 🙂
!BBH
!PIZZA
!ALIVE
A coin that weighs a kilo—wow, my friend, that's incredible.
!LADY
Haha yeah, I have just the one. It's very impractical for storing and selling.
!BBH
!PIZZA
!ALIVE
$PIZZA slices delivered:
bulliontools tipped katriel1 (x2)
bulliontools tipped kerrislravenhill
@bulliontools(8/20) tipped @seki1
bulliontools tipped daveks
Please vote for pizza.witness!
!PIMP being the only other Token backed in part with some silver.
Otherwise, after 9 years here I now have a wild token collection, not including the collection I left back in old defunct tip.cc wallet back on Discord.
Good point about PIMP!
I didn't realize tip.cc wasn't working anymore. When did that stop?
!BBH
!PIZZA
!ALIVE
1 kilo silver coin is insane 😂😂😂
How excited were you for the deal that you missed that fairly big piece of detail about the item?😂😂
Haha I was pretty excited. I should've taken just 3-5 more seconds to re-read it. I didn't because it was very limited quantity and it's not uncommon for many items to get sniped, but that's on me for not slowing down. 😆
!BBH
!PIZZA
!ALIVE
Great job finishing the daily Ecency leaderboard quest, @bulliontools!
Tipped with Ecency POINTS.