3Spealk SIP: Going To Eat Up A Lot of HIVE

in LeoFinance18 days ago

By now you heard about 3Speak's plans with their new project of expanding the network and decentralizing video storage. It is a bold move that stands to alter how video content is handled.

In this post, I am not going into the a lot of the details of the project. For those who missed it, you can read the post here.

Instead, I want to focus upon the tokeneconomis and the impact that is going to have. It is a rather interesting model, one that is worthy of delving into. By design, I presume, this stands to greatly benefit Hive and its token.


Source

At the core of this is the Service Infrastructure Pool or SIP. This essentially is a fund that is in place to create long term value.

All activities that take place on the new network will feed into the SIP. It matters not what the action is, all proceeds find their way into it.

The thing about the SIP is that it is permanent. What goes in does not come out. The principle is there to to grow over time. All payouts to stakeholders come from the fees generated.

One way to look at the SIP is as a liquidity pool. It is there for people to trade the tokens against each other. The 3 tokens will be SPEAK, BROCA, and HIVE. Obviously, HIVE is the on and off ramp since the other two are platform tokens.

All funds generated through trading, video uploading (GAS), and advertising go into the SIP. The breakdown is summarized as follows from the article linked above.

However, before the SPEAK gets into the SIP, it is chopped three ways to SPEAK, some burned to mint BROCA, and the rest sold to buy HIVE. The SPEAK/HIVE/BROCA are then sent to the SIP and locked permanently.

This is akin to a burn without actually burning any tokens. Instead, the tokens are locked up and used to generate fees via trading/exchange.

How Does This Help HIVE?

The SIP becomes a simple supply issue. As the network grows, activity increases. Thus, the success of this project aids in the success of Hive. This includes the token itself.

Let us use a simple example.

Presume for a moment there are $90 in advertising fees. It won't be in USD since that currency is not part of the DEX but the point still holds. This is broken up 3 ways: 1/3 is in SPEAK, 1/3 mints BROCA, 1/3 buys HIVE.

Effectively, we see $30 of each token. All of this is sent to the SIP. At the present price of HIVE this amounts to around 260 HIVE being put into the SIP. It is now basically out of the circulating supply.

Obviously 260 HIVE is not going to change anything. However, what if, as opposed to $90 in advertising, the amount was $900...or $9,000? Now we are seeing the numbers jump.

The goal is to have the SIP filled with a lot of each token. Liquidity is sought. This is vital when swapping tokens. Non-liquidity leads to slippage which affects people's ability to operate. A tight bid-ask price allows for people to get what they need instantly.

Also, the fact that each time anyone transacts, the proceeds are going into the SIP.

Therefore, when we think about it, payments come from a variety of sources.

If we want to consider the potential, think about how many uploads there are on YouTube. There are more than 500 hours of videos uploaded every minute, or 6,000 videos per minute if we use a 5 minute video as the average. Picture the fees generated if 1/100,000th of the volume is hit.

Ponder for a second all the exchange fees that are generated by the Uniswap network. Take all the tokens in liquidity pools and add the fees up. It is likely a rather large number. Again, take a slight percentage of the total.

Finally, consider all the money spent on digital advertising each in. In the United States, it is well over $100 billion. Factor in the other countries around the globe and we can see how this is a rather large number.

For a third time, take a minor sliver of that and what do you come up with?

All of this is adds to the SIP. Because of the ratio, HIVE is being bought using 1/3 the proceeds.

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It is rather naive to think that this project is going to totally dominate the video content world immediately. However, it is not unrealistic to feel this is something that could grow into a rather large network. As more people tangent into the idea of Web 3.0, it only makes sense that a platform like this will hold appeal to some.

Ultimately, it all comes down to the success of the network. 3Speak itself covers a minor niche. Of course, it does not presently have the ability to promote the idea of decentralized video storage. Also, all uploading is done on 3Speak's network, through their site.

How will things change when one is able to use the network from one's own website? The means the network will truly be the back end of things. Of course, to use the network requires BROCA which must be acquired using HIVE (or SPEAK).

The key is active participation. Anyone is able to house videos. A follower of any content creator can become part of the project by providing decentralized video storage. Thus, the entire community can be part of the process. The third party is not Google or AWS but, rather, the fans of the video creator.

It is essentially moving the community from passive viewers to active participants. For this effort, people will potentially be rewarded with tokens for providing this service. Again, we will see this happening across the board.

From the tokeneconomics perspective, all of this adds to the financial aspect of the network. Each stage of the process that generates money is fed into the SIP.

As it pertains to the SIP, here is the goal (from the original article):

The goal is to have the most liquid dex for SPEAK/BROCA/HIVE on the market; high liquidity means little slippage, which is the crux of what most people use Cexes.

Simply put, to achieve this end, there will need to be millions of dollars locked up. Doing some simple math will lead us to understand how much HIVE can be eaten up and taken off the open market.

Over the next few years, if this project does become successful, it could tie up tens of millions of HIVE. It could become one of the largest HIVE sinks we found to date.

The potential is there. We will have to see what happens.


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Lets buy more #Hive before it runs out.

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LOL Not sure it will run out but it is not a bad idea to get a few more coins.

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This might be good advice as long as HIVE is close to the $ 0.1 value. I do not think that this favorable purchasing situation will remain for a long time.

This, sounds very promising. 3speak is going to make big big waves in hive. 2021 is going to be interesting.

Planning into the future is imperative for Hive to thrive, using video which is popular a great initiative spelled out here.

Not everyone will present in video, many do consume video for information or music, this sounds a good start.

@tipu curate

3speak in my mind reads freespeak and that's what's going to drive people here from centralised and highly censored platforms.

What's even greater here is the economic structure that is going to benefit both Hive and 3speak. It's a very smart solution and I hope other communities will follow.

I'm glad to see more and more communities coming up with smart solutions that can serve as an example for others. We're on the right track.

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There are a lot of big brains in this community. Such ingenious ideas on how to grow and develop HIVE being born every other day it seems. And you seem to know about it first! Keep it up and Florida Man may become a complement.

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A lot of innovation rolling out.

It might not have originated on Hive but people are pulling the ideas in.

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This is precisely the sort of sink Hive really needs. May all mainstream platforms go overboard with their canceling ways.

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This is all very interesting. I hope it helps the 3speak platform. One of the issues many alternative media sites have is they or their users tend to focus on just one sort of content, like mostly videos about cryptocurrency. If a site wants to find broad acceptance it needs to have a broad appeal and user base with a variety of topics.

When it comes to crypto sites one of the mistakes many of them make is with being too complicated. They structure things in such a way that might appeal to someone very involved with and used to cryptocurrency but would just seem complicated to the average user. Similar to the above point, if a crypto site wants to reach truly broad appeal it needs to keep things as simple and streamlined as possible so that new users don't even need to know anything about cryptocurrency to sign up and start using the platform.

I just cant wait to run a 3Speak node, basically the desktop app as describe on Hivefest video, tokenomics is so different than most other crypto video platforms, and still ppl think that dapp tokens will diminish Hive, its just a matter of time for Hive to become the "GAS" of the ecosystem

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Yeah it will be fun when it comes out. I am hoping in January but we will see.

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Interesting to hear that 3Speak are still on buidling. For me, the explosion of 3SPeak has been so delayed, however, its good that some superior tokenomics are brainstormed and coming forth.

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Exciting stuff. 3Speak is one of the reasons the majority of my Hive is powered up (delegated to leo.voter). Seems like most of the exciting stuff with Hive is on the second layer (leofinance, splinterlands, 3speak).

That is where is should be.

Most of the exciting stuff on Ethereum is through the DApps.

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It is very interesting. For that I have just one thing to say as I'm not well versed in tokeneconomics, but I get the idea. I just hope that 3speak will get to the point in which uploading a video isn't a pain for slow connections. I think when that is achieved it would surpass YouTube in number of uploads as it would be a relief for content creators as myself that can't used it because the upload fails every time.

But I can see that the momentum that it has build is considerable and we might be looking at a great competitor for other centralized video storage services.

I'm glad you did such a deep dive. I'm beginning to understand all this stuff (beginning!!!). The presupposition that it must be successful is key. Youtube is king and always will be. It will be interesting if others can chip away at it.

Youtube is king and always will be.

I disagree. Youtube will collapse like a lot of other entities.

It is only a matter of time. When the economics change, their model goes down.

Facebook is in greater danger since it is one that relies exclusively on its main platform. Google is much bigger than YouTube.

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sounds amazing! Crossing fingers :)

This will take time but with the right moves could become rather big. We have seen how may users are not happy with Youtube and it's censorship. This new gateway could definitely be something that blows Hive up and brings more value to such an undervalued token. Next year and the year after there will be some big moves on here with some working better than others, but all added together it is great news. Love reading your posts as you make it sound clearer in layman terms.

I agree. The actions of YouTube are making it easier for other options to stand up.

Hopefully what 3Speak is doing will lead it to that end.

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This is so wow, exciting, awesome sauce 👍

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Projects of this type and the enthusiasm around them can lead to success. However, I think it should start from the request, who needs this service and why? I think everyone wants as much exposure as possible and that's why they will go to the platform that offers this ... of course there will be some who are dissatisfied and will look for alternatives, but I think they are still few. My opinion is that Hive should be used to grow 3Speak, from Hive members who should be attracted to video expression, who should be rewarded for this. Then have to find ways to grow Hive and as a consequence will grow everything that is or depends on Hive.

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With the censorship that is taking place, it answers your question.

There are many who are being displaced by the traditional social media sites.

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From every angle that I look at this project it simply presents a win win for us all.
Coming up with a means to reducing the HIVE in circulation is a sweet one!

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Brilliant. 3Speak is just one of the revolutionary and innovative platforms that is emerging around or on Hive blockchain. Hive blockchain has all that one needs, like Ethereum and Tron and more all combined. Let's get user adoption up and awareness increased, and we will go still further.

Thanks for explaining this, it's complex stuff!

I'm excited for the upcoming this of 3speak. I have a personalized plan to apply. First of all powering and supporting the creators are major things to be done. On the other hand, to provide liquidity, I may locate some buy & sell areas of the tokens after a couple of trading weeks. Finally, I'll be inviting people who may become a part of our platform.

These are my short term plans once 3speak implement these features 😌

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It might take a while. From what they announced, the client will be the first thing to roll out in MVP form.

Hopefully we see that by the end of January.

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Over the next few years, if this project does become successful, it could tie up tens of millions of HIVE. It could become one of the largest HIVE sinks we found to date.

And that will have a direct impact on the price. Great analysis of the tokeneconomis.

This is very interesting and I still try to wrap my mind around it as I didn't understood all the mechanics behind it. Maybe you've written about this before, but indulge me with an explanation about SPEAK, BROCA, and HIVE from both the creator and end user point of view. If you can put some math in it, I will be able to understand it better as well as other followers. Thank you!

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SPEAK is mined by having the LARYNX token, which is going to be dropped to Hive holders in a claim drop formet.

SPEAK is the governance token.

BROCA is essentially the GAS token. People are going to need BROCA to upload videos.

There will, from what I understand, a proof of brain token added similar to what is on Hive and Hive Engine.

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Is that not a turn off though, having to pay to upload a video? The main reason people use Youtube is its free to upload as far as i know, they get the audience and the potential to earn money. People are leaving Youtube because of the lack of freedom of speech. great, they will look for places where there is little to no censorship. Thats one incentive to leave youtube, the other one is making money like they used too and having an audience. Im wondering if the pay to upload thing is slightly off putting? i dont use 3speak but im interested in it because there is such a gap in the market for a go to platform where there is no censorship and the ability to earn money.

That is the reason BROCA is given freely to SPEAK stakers, just like on HIVE and RCs. If you hold a little SPEAK you can enjoy free uploads. The fee will be small regardless, we are talking cents, something that the user would not feel as a burden. So combine the feel of HIVE with the RCs/BROCA + it being inexpencisve, we belive this should be enough to offer an enjoyable experience. Storage is very cheap, 1$ can get you 1gig stored for 200 years, and storage is only getting cheaper and cheaper every year. With the SIP we could offer a free experience, but we have to stop spam, so you'll need a spam/gass token to protect the network anyway.

ok thats cool, seems very cheap like you say. I look foward to seeing it develop. Creating a buzz will go along way in helping it succeed. I hope it works out, it sounds like it has great potential. This is what i always saw in Steem and Hive as being the potential. If hive can become a gas token it would sure help the tokenomics too.

Gas / gov token + Smt would be a huge win!

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perfect let's build the future!

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Thanks for your analysis. We need more projects like that, we got 3speak as youtube, micro-loe blogging will be as twitter, we already got some basic games. NFT are already showing up. We just need to brings all these things together and bring up more development. That will ultimately moon hive.

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There is a lot of things starting to take root on Hive.

They are in their embryotic stage but they are there. Hopefully each area you mentioned will grow a great deal.

If they do, they will end up providing exponential growth.

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wow and if we have hive locked up that means greater demand for hive and obviously greater scarcity, and by simple laws of supply and demand, higher and better prices, I don't know how much video is published in percentage but one thing is for sure, it must be quite significant, And since I'm not a big fan of posting videos, but if there is benefit in the matter, we'll see how we get out.

I have a question, if hive has its own pool of hive power in stake, how would an additional pool benefit, if we already have one, or is it because of the fact that I have massified tokenization through the masses, and the sale of advertising .
thanks..

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Two completely separate purposes.

HP is used for Proof of Brain, ie upvoting for rewards.

This will be a liquidity pool of HIVE that is used to enable people to trade for SPEAK and BROCA.

The SIP is effectively a decentralized exchange used for swapping these 3 tokens.

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.
ok thank you very much well we hope that this will contribute to our beloved platform to grow more than what we have for now, which is not bad considering that we barely have a year and there are great projects on the way.
thank you and happy day.

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if 3speak manages to convince some influencers to enter the platform, we could see an exponential migration and things could increase exponentially. if I know a little Dan from his writings and publications, he will surely have a plan for that and maybe he has more than a few contacts

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I am looking forward to see what the plan is. It will be interesting to watch who joins and how they approach it.

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3Speak has a lot of potencial.

I still don't understand how it is not such a popular option for users who make videos.

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There are some technical difficulties that the team had to work out.

The switch to this new system should be very popular once people (content creators) grasp what is taking place.

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To be fair to us, we have the flood gates sealed, so to speak. The cost of hosting viral videos adds up, and until we have our fully decentralized storage system rolled out (we offer web torrents peer 2 peer downloads already, we just need the incentive layer to bring it to life), we will have to watch our cost. Unfortunately, this has lead to a "queue" of sorts, where we have dozens of large scale communities waiting to "get in" - get in = tokenized community with fully decentralized back up storage. Once we have this thing ready, you'll see the numbers on speak jump 10 fold. We have been working this whole time diligently, and our work is about to show itself in a big way.

The model seems astonishing, why do I feel like hive might finally kick off after this brilliant move by 3speak???

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It could. We will have to see how quickly things grow. It will take a while for all of this to roll out from what I understand.

That said, it could end up eat up a great deal of HIVE if it does become popular.

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Yeah we just have to wait, but imagine locking that huge amount of hive that 90% signals a sort of growth, potentially for hive. Wow considering it is even better. Although nothing is certain yet

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It will all come down to the success of the platform. 3Speak is basically a MVP at this point, a proof of concept if you will.

The new plan is a radical expansion. Getting people involved in the decentralized storage aspect will provide a gateway for people using the system. If one is providing storage, wouldnt he or she also upload videos if that person creates them?

It really could change things on an ongoing basis.

The client is really a great idea. That will help to foster adoption.

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That is pretty cool the way they have it worked out. I have never really used 3Speak because I don't do a lot (zero) video content myself. I guess I don't really consume a lot of video content either. The only time I ever visit Youtube is if I want to watch a music video or learn how to do something. I like how this is potentially going to diminish the token supply while still adding value to the token. I could really be game changing. I need to decide what I am going to do with my tokens if I get any via the airdrop.

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The potental for those tokeneconomic is huge.
SIP is very interesting because of the look like liquity pool, just cool!

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I just cant wait to run a 3Speak node, basically the desktop app as describe on Hivefest video, tokenomics is so different than most other crypto video platforms, and still ppl think that dapp tokens will diminish Hive, its just a matter of time for Hive to become the "GAS" of the ecosystem

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Learn and earn

Great!!!
Keep up.

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Cant wait to see what happens with hive price in 2021!