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RE: Hive Staking Incentives in a New Token Distribution Scheme

in #hive3 years ago

What I have outlined in this post would actually stabilize the rewards/financials of Hive, rather than constantly tweaking the social elements in order to try to fix what is constantly seen as "broken." By removing the social rewards on the main chain and allowing those interfaces to run with their own tokens and social mechanics that can shift their focus to social media functions and features, those interfaces can excel and can try their own systems to see what works best for them based on their own business goals.

Once that option is available for the interface owners, then we can shore up the underlying chain, financial products, and incentives for investing and staking. We can stabilize the economics and mechanics based on actual investment and proven financial demands in the greater crypto community. We can make the base token and chain competitive in the industry while also having the social media, gaming, and commerce apps on the application layer. We won't need to make adjustments for social needs that don't necessarily work for gaming. We won't need to make adjustments for gaming needs that don't necessarily work for everyday commerce. It would allow us to become more stable, predictable, and profitable - which is what investors crave.

"How often does the financial system of bitcoin change?"

Not often at all...because Bitcoin doesn't do what Hive does. It doesn't pretend to be a social media chain with a complex token system. It doesn't pretend to "get you paid" by submitting social content and seeking popular/stake-weighted supporters who are themselves seeking a return based on their activity. And that's my point.

Investing in Bitcoin is straightforward. Profits pretty much rely on capital appreciation. We don't have that here. Our overall ROI is negative. Steem's overall ROI is negative. Outside of the general FOMO of 2017-2018 - which was basically a market-wide phenomenon - this experiment has proven to be an unmitigated disaster for investors. It's great for bloggers who don't need to invest much at all, but not so much for the monied interests that allow for the "getting paid" part to work.

I'm old enough to remember a time when the goal was to simplify things. We talked about K.I.S.S. - even joked about it. But it never happened, despite it being what we actually need. If we don't figure that out and start moving toward something that can attract and retain both users and investors, then we're just going to continue down the same path.

But I just want to remind you that this post is meant to be an idea for what we can do with staking and inflation once the social rewards are already removed or reduced and a second-layer solution already exists. If we can't or aren't willing to do that, then this won't matter much.

Essentially, this is just the idea/planning phase before it can be drafted/coded. So input is welcome and I thank you for yours.