It always goes back to simple business ideals. If we want hive to go up there needs to be a reason to buy it. People earning the token will always have incentive to sell which is fine but not good for price right now as there is too much selling and not enough buying.
We need something similar to smt's or tribes when communities get updated. They have to create revenue or buy pressure on hive and the best way to do that is make them very easy to set up with reasonable a cost to do so. Say 100hbd or the equivalent of hive. This will only be viable if the communities can be used to generate revenue.
For me a community or tribe should be at the level of leofinance when you purchase it and we get to see hundreds of them pop up. With 100's of gateways we will get new users and increase on chain activity. Leo will soon have a sign-up through metamask, twitter, facebook and google. We could see ad revenue from hundreds of sites which can auto buy hive from the market to sustain your community token. More users, more ad revenue. More revenue, higher token price and more demand to earn it.
Imagine if i could buy the sports.hive community with all of the leofinance options set up and ready to go with a slight customization and really own that community an it's keys then it would be a small price to pay. Then it is up to me to market that community externally, bring in users and moderate the experience to make it profitable. The community gets rewarded for being active and i get compensated for running that community successfully.
With hivepay.io in stage one it also opens up the possibility of marketplaces in each community that can accept any of the tribe tokens. Suddenly we have a varied and interlocked hive based economy through growing communities all of which increase revenue and buy pressure on the token. Communities should automatically provide RC to new users signing up which means the moderator account will need to keep powering up hive as it grows and further increases the use case of the token.
With more users we are a lot more desirable for apps to build here. Keychain makes everything interlocked and we all know how good the hive blockchain really is. We still have time to build web 3.0 but it is fast running out.
Hive-engine hasn't hurt the blockchain. It is showing what should have been build a long time ago and put to proper use. We should already have hundreds of leofinance sites adding value to the community but have been failed by the business minds and too focused on the technical. Those are important but there needs to be balance as you build. A focus on the people as well as the product. If tribes had kept developing at the base layer with the pace leofinance has done we could be doing a lot better as a token. Hive powers apps but we need a those apps prebuild for everyday people to run with.
Yes but I think you are missing my point. Communities and tokens by themselves do not increase the market cap of HIVE if there is very little tying them to HIVE. We need to create real demand for HIVE and simply creating more tokens and communities on top of HIVE doesn't really do that with the current model. Resource Credits are the only thing tying them together and currently it costs so little in terms of resource credits to run a community on top of HIVE that it simply doesn't drive enough demand for the HIVE coin to make a difference.
I got your point. But you seem to be looking in terms of a few thousand users.
I'm thinking of hundreds of communities with thousands of users each. For a start. ( I know,optimistic in the extreme but we should be planning long term.)
I see hive as the base token for all of these and trading pair on all dex the same as with eth or bitcoin. The revenue needs to be used to buy hive in my theory to power these markets.
Also each of these communities then generating ad revenue which will buy hive from the main markets to power their token and create a buy pressure.
Leofinance earned over $700 last month which was used to buy hive from the market. As of now they are a very niche site and only beginning to expand their audience as you know all about.
A community for harry potter could have a lot more members within a few months under the same set up. There could be hundreds of these communities within a couple of years if the tools are in place for people to start and run them. People spend hours every day setting up and running communities for free and with the threat of cancellation hanging over them. Why would they not do it for profit if the option was there.
A $70,000 buy order on hive every month (100 communities) would get it moving very fast and increase interest and speculation on the future of the token. That would only be a very conservative estimate as you can easily see leofinance going 10x more profitable in the new couple of years and these numbers could keep going up. People will drive the price but we need to be able to bring them in and keep them. from that point there is profit to be made from their attention and the higher the revenue goes, the more interest people will have to take part. Start their own community or innovate even further. It has to stat from somewhere.
Ok, but why would the community need to use their ad revenue to buy HIVE? Once LEO is on other exchanges they will no longer need to go through HIVE, correct? And I would imagine most of the popular/big communities will work on listing their token in other places...
I'm sure some of the bigger ones could branch out but taking the harry potter based community as an example. Their token would be hive based and i couldn't see binance listing it as an option. It would need to be traded on a hive dex against hive. The mod account would also need to stake hive for RC.
I mod the community and use the ad revenue to buy back the token with hive. Leo is a tribe with mining, Wleo and probably more to come but as a harry potter community those aren't what people would come for. They would come to engage and earn some crypto through participation. Post/ comment and earn. Buy badges and other token sinks to be added to the sites.
Maybe it can even be done in such a way that ad revenue is paid directly in hive to the mod accounts based on analytical views to each community site. Cut out the bitcoin step altogether? Then the money is already in the system and tying up hive into the chain and off the exchanges.
Who knows all of the possibilities.
I'm just trying to imagine some of them.
HIVE is the governance token of Hive. A successful Tribe will want to also buy some Hive Power to have a say in base layer affairs just to make sure their own community is secure.
Posted Using LeoFinance Beta