Any web3 platform is going to have to generate revenue. It's not free to run a website and it costs money, domain, server costs or even if you outsourced it to a CDN network you need to reward them with a token but how does that token get real monetary value outside of simple supply and demand.
By running ads like we see on web2 but the ads are done in a way to not cater to the ad platforms and start nixing content etc. That ad revenue then goes back into the token, users and creators unlike web2 where companies become massive billion dollar corporations.
I'm aware of the costs of running an operation. This is the same for Web2 and Web3 operations, hierarchical companies and non-hierarchical organizations alike. Is the current rewards system not generating enough revenue to cover those expenses for Hive? If not, why not?
I guess I would have to see the ads in action to understand the tokenomics better. I've never seen anyone explain it in a way that makes sense to me.
I don't believe hive itself brings much value it's always outside apps that run like Splinterlands where the main swap token is hive so people want it for that reason.
Ad revenue at least on LEO is going to work by generating crypto from ads and then buying LEO and HIVE tokens off the market. This means that ads are now supporting dollar value to these tokens daily.
With LEO it starts to generate a APR on the LEO token. But the APR is coming from buy pressure on the market which then gets divided up across all powered up LEO tokens.
At least that's what I've heard over the last two years since this was talked about. We will have better details from the team come November 1st and start seeing it in action.
It sounds good, but something like this has to be seen to be valued, IMO. People in crypto do a good job selling fancy concepts, then they crash and burn. I'm skeptical until I see it.
Any web3 platform is going to have to generate revenue. It's not free to run a website and it costs money, domain, server costs or even if you outsourced it to a CDN network you need to reward them with a token but how does that token get real monetary value outside of simple supply and demand.
By running ads like we see on web2 but the ads are done in a way to not cater to the ad platforms and start nixing content etc. That ad revenue then goes back into the token, users and creators unlike web2 where companies become massive billion dollar corporations.
I'm aware of the costs of running an operation. This is the same for Web2 and Web3 operations, hierarchical companies and non-hierarchical organizations alike. Is the current rewards system not generating enough revenue to cover those expenses for Hive? If not, why not?
I guess I would have to see the ads in action to understand the tokenomics better. I've never seen anyone explain it in a way that makes sense to me.
I don't believe hive itself brings much value it's always outside apps that run like Splinterlands where the main swap token is hive so people want it for that reason.
Ad revenue at least on LEO is going to work by generating crypto from ads and then buying LEO and HIVE tokens off the market. This means that ads are now supporting dollar value to these tokens daily.
With LEO it starts to generate a APR on the LEO token. But the APR is coming from buy pressure on the market which then gets divided up across all powered up LEO tokens.
At least that's what I've heard over the last two years since this was talked about. We will have better details from the team come November 1st and start seeing it in action.
It sounds good, but something like this has to be seen to be valued, IMO. People in crypto do a good job selling fancy concepts, then they crash and burn. I'm skeptical until I see it.
Oh I totally agree. I'm just happy to see some action in this area after 2 years and see how it does.