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RE: The First Hive Cross-Chain Enabling Liquidity Pools Launch on Magi Network 11.11

in #hive7 days ago

This is exactly what we already do with Hive staking for consensus. This feature is live and implemented part of our long term plan. Part of Magi's structure is designed to generate a strong buy pressure for Hive / HBD by generating fee revenue to incentive more Hive and HBD being locked up in collateral providers (Magi witnesses) and liquidity pools respectively. You can see the screenshot below of the active Hive staked within Magi of about 120K Hive. While it is not much right now, it'll grow significantly as rewards are paid out to witnesses and liquidity providers.

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What I was referring to above was specifically in regards to DAO activities such as a development fund or other forms of incentives long term. Any kind of future token will only compliment the staking of Hive/HBD and will not directly replace or remove it.

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Great, this is how I understood it and so was not sure what the purpose of a new token would be. From what you are saying, it sounds like the purpose would be for funding development. But if the Magi network already has a sustainable model due to fees and is locking up HIVE/HBD, then it would make total sense for the Hive DAO to keep funding Magi development on a long-term basis. If lots is getting locked up, then the Hive DAO gets a positive return on what it invests in Magi. A clear win-win. And finally a meaningful business model that others can follow.

Whereas by creating a new token, it dilutes the value. Instead of having 10-20 projects that use HIVE/HBD for 100% of their needs, thus greatly increasing the use case and demand, it all becomes diluted into 10-20 different tokens, and everyone wants to push investments into their token, so in the end we have a bunch of weak tokens instead of one very strong one. Fundamentally a very bad economy design.

Whereas by creating a new token, it dilutes the value. Instead of having 10-20 projects that use HIVE/HBD for 100% of their needs, thus greatly increasing the use case and demand, it all becomes diluted into 10-20 different tokens

The model we built directly incentivizes more HBD and Hive purchase. It doesnt act as value dilution. It directly incentivizes more Hive and HBD purchase on top of established APR via pools.

A lot of assumptions are being made here when we haven't even formalized the design yet of such a thing.