We have a problem on hive. One that is going to sink the whole blockchain if it's not solved. People can say what they want about the price of hive and the future of the chain but if it keeps dropping lower then people have no incentive to stake it or to buy it from the markets.
The price dropping in the short term doesn't matter but if it keeps going down and stays down then it's not viable for a lot of the projects to keep running on chain and they will fail, leave or just fade into obscurity. The price doesn't matter if it's due to poor markets in general but in our case that is not the overall cause.
The real problem with the price of hive is that there is a lot more sell pressure than buy pressure. At the moment there is little to no reason for anybody to buy the token.
In the past, witnesses said that applications would need a lot of hive power to onboard users and this would create the demand needed to keep the price competitive. Unfortunately we have not have any large new applications built in the past few years. There is no need for large amounts of hive power due to the lack of new applications or new users and we are currently on a very dangerous slope.
The large projects that we do have peakd, ecency, inleo, 3speak are all receiving funding from the hive DHF or have received large amounts of funding from the chain in the past. At the moment it's 4K a day but the hive promotional fund was getting 10K a day just last week. These numbers are not sustainable if there is no buy pressure on the token. Combine that with the people selling their hive as they should and you have a large outflow of hive to the markets with very few buying.
This can only end up one way if we don't correct it.
Why are they not running ads?
I know that we don't like ads and if possible we would choose not to have them but if the choice is between seeing a few ads on peakd and splinterlands or those projects failing then it's an easy choice for me personally.
Inleo had great aspirations of running ads and buying back their token to turn it into a viable business and did start not that long ago. I found them very unobtrusive and didn't hurt my experience one bit.
Unfortunately Khal said that they were not earning as much as he had anticipated and were effecting the speed of the site but i wish that they had pivoted instead of reversing. The whole community was so excited to see real revenue coming into the project and could see how this was going to be a huge positive on the project and the token price. It was just a matter of figuring out how to maximise the returns instead of giving up at the first hurdle.
Could peakd figure out a better way to do it??
- Integrate ads.
- Turn revenue into crypto.
- Buy Hive from the markets.
- Distribute as staked hive to HP holders.
It would put buy pressure on Hive. An extra reason to stake more hive. Create a long term and viable revenue stream.
Apart from people seeing a few ads on their feed it has very little drawback if they can integrate them without affecting the sites performance. I've mentioned it to the devs in the past but there was no enthusiasm to do anything like this.
Other social media sites generate huge profits from ads but on hive we seem to have an aversion to revenue. Instead relying on money created by the eco-system itself with nothing to back it or support the token if it becomes oversupplied.
After a slowdown in 2022, social media advertising revenues have rebounded with 8.7% YoY growth in 2023, increasing to $64.9 billion in 2023. This can in part be attributed to the continued proliferation of social media and creator marketing growth across multiple platforms and new social media forms.
IAB.com
$65B in social media advertising and we have thousands of authors here with millions of page views and not one cent from ads. It baffles me.
I read a similar post yesterday from "Deadzy" who wants to solve splinterlands money problems. To be fair he suggested the crazy idea of earning external revenue from ads. Who would have thought that games could make money by placing ads on their sites.....
From their post
- The user watches the ad in its entirety;
- The $xx is unlocked for Splinterlands.
- Splinterlands keeps 20%;
- The remaining 80% is locked in a wallet, waiting to be used to buy DEC (when the credits are used up).
- Credits are added to the user's balance.
(The 20/80 ratio based on Pareto's law is just an example).
For the user, it will be much simpler: ad viewed -> credit earned.
Personally i would refine this a bit and make it a side option to watch ads and earn in game credits. I would give a higher share to splinterlands to buy sps from the external market and burn or use as prizes. It should be opt in for a game like this but for newer users.
If i could watch 20 ads and earn $1 in credits to spend in the game itself. That would be a great way to build my deck and buy more cards from the market. If splinterlands were able to buy $1 of SPS from the markets every time that this happened then it's a win - win again.
The only way that we are going to survive and to grow if by finding ways to draw revenue into the eco-system and buy hive from the markets. User driven demand isn't going to be enough especially as we drop lower and lower in price. Unfortunatly there are no big apps on the horizon as there is little to no interest to develop on hive at these current token prices.
I know that it's the backwards way of thinking from devs and users who should be taking advantage of the low prices to build stake and grow in the eco-system but people don't have an interest until we are already successful. The hard part is breaking that ceiling in the first place and gaining momentum.
Luckily we do have the tools to do this if the different apps on hive can find a way to monetize their userbase but whether it happens or not is a long shot.
Posted Using InLeo Alpha
Why should devs work efficiently, with the DHF giving devs and projects hand over fist there is no incentive for devs and apps to be self sustaining.
Ads are a must, all revenue streams need to be embraced.
There are only two issues with ads from what I noticed for adsense bloggers: Ads with traffic from Africa and South america does not fetch much income. And for crypto communities the CPM is very low. Khal didn't paid much attention to micro things like that, he took as experiment and then ditched.
Ads need to be embraced eventually. Otherwise hive won't regain 30 cent value back again.
If Leo couldn't do it on a small scale, I wonder why the team didn't double down and find other ways to actually make it work, probably if it worked, the people that make things work might have been better motivated, we should do need that revenue.
Personally, I don't mind ads.
The hatred of ads comes from outside of HIVE and commerce in general. Note the success of Wikipedia, the Brave Browser and the numerous ad-blocking BHOs.
The reward structure was supposed to provide an alternative funding path than ad revenue. So, HIVE marketed itself to a crowd that hated ads. The platform is committed to this path.
As for the downward pressure on the price of HIVE, Personally, I think that is due to the 30% interest on HBD. Everytime there is a drop in the price of HIVE we see people converting their HBD to HIVE. We've seen over a million HBD converted to HIVE during the last market dip. That is about 5 million HIVE the market needs to absorb.
!WINE
Thank you for your witness vote!
Have a !BEER on me!
To Opt-Out of my witness beer program just comment STOP below
Thank you for your witness vote!
Have a !BEER on me!
To Opt-Out of my witness beer program just comment STOP below
View or trade
BEER
.BEER
Hey @yintercept, here is a little bit of from @isnochys for you. Enjoy it!Learn how to earn FREE BEER each day by staking your
BEER
.