For anyone who's new to Hive, you should know there's a weekly rewards pool that gives out Hive to authors, curators and witnesses. Right now it sits at 920k for the upcoming week:
although the prices aren't updated there yet it seems like. On top of that now that the marketcap of Hive backed Dollars is under 10% of the marketcap of Hive it means that we're also getting HBD rewards instead of half of the post rewards being in liquid Hive. Now before we get all too technical (which I don't want to get cause mainly a lot of it goes over my head no matter how many times I've attempted to wrap it around it) here's the fun scalable part. The higher the price of Hive the more HBD gets printed for post rewards.
This means theoretically that there's no real "cap" on the amount of rewards the blockchain can give out in HBD. Say if we saw an increase in users using Hive and at the same time investors and buyers/holders everything going up 10x (price has been beating us to it lately) the amount of HBD being printed would also increase with the price allowing authors to share the rewards pool. Here we have to now be careful with how we allocate it, though.
We've had some crazy times back in the day when both SBD pumped to $14 and shortly after Steem went up to $8. Some authors back in the day went on crazy 10x per day posting sprees and many autovoters either weren't around or didn't care to check and it ended with those authors making 2000 SBD per day which resulted in about $30k daily rewards from shitposting. While I wasn't completely innocent in the shitposting part I tried to keep it to max 2 posts per day to not lose my dignity completely. The biggest difference between then and now, though, is the 25% free downvote mana that we now have and boy will we be using a lot of popcorn this time around.
You think your votes being 7x bigger in 3 days is nice, imagine how 7x bigger downvotes will feel!
This will be a great tool to keep rewards from going to unrealistic and unsustainable amounts, though, and will assist with scaling a lot more than it did in the past. Of course there will be some abuse there as well such as grudges, retaliation, hate, etc but I think the pros will definitely outweigh the cons of this system.
If a post like this one ends up making $400 in rewards for instance someone can come in and say "hey, you know while I appreciate the content I do believe the stacking of autovotes may be a bit unfair to the rest of the authors on the platform so I'm going to downvote this a bit so the rewards get distributed to the rest" and this way we will hold eachother down to earth a little bit while at the same time improving distribution. Meanwhile there will be more content creators joining and them not having the advantage of autovotes won't be a big burden as those making "too much" in HBD will start seeing disagreement of rewards downvotes more and more. It's our responsibility to not take them personal though and use them with love and spread them around nicely so the authors don't have a reason to take them personally to begin with.
But Acidyo, if the price of Hive goes up by 100x I want to profit 100x too. Sure, and you can do that by holding hive or hive power and curating with it but one thing you need to realize and learn (better sooner rather than later) is that your post rewards are "pending" for a reason and it takes 7 days for them to be paid out so you should never take them for granted or assume that the content you were receiving $20 in liquid rewards a week ago should now be worth $140 or $2000 with a 100x. It's only natural that those with skin in the game get to see higher profits and more reliable ones (since curation rewards and your vested holdings are way harder to downvote) than those suddenly "coming back" to the platform when they hear all the buzz about it after having been so busy during the bear market with other things. ;)
How's everyone enjoying the pump?
PS! Feel free to downvote this post if you feel it makes too much rewards, I won't retaliate unless I don't like you (just kidding :P)
PPS! The cloud got nothing on the Hive chart at the moment.
