(Scroll down for the Hindi/Urdu version)
Many people have asked me about HIVE and HIVE POWER on Hive, and I have explained it to many people repeatedly. But this time, when friends from the Indian subcontinent asked, I thought of giving a detailed reply and posting it on the blockchain, so I can provide a link and hopefully they can understand.
In this post, I have also discussed the advantages and disadvantages of HP Delegations. So you might get a good understanding of Delegations.
Let's start from the beginning
HIVE = Hive is the native coin of the Hive Blockchain, its value fluctuates based on the crypto market and "supply and demand".
You can transfer HIVE to any other Hive account and you can also convert it into HBD (HIVE Backed Dollar).
HIVE POWER
HIVE POWER (or HP) = These are HIVE tokens that are "staked"/"PoweredUp"/"locked."
Benefits of converting HIVE to HP:
Increased Upvote Value - the upvote value of your Hive account increases, resulting in more "curation rewards" (rewards you get for upvoting)
Increased Resource Credits (increased number of transactions) - you get more Resource Credits (RC), which are used for transactions on the Hive blockchain (upvoting, posting, commenting, sending tokens, even 'marking all notifications as read' etc. are all transactions)
More dividends/interests on HP - you also get some interests on HP, currently around 3% per year (this is separate from curation rewards)
More say in Proposals and overall governance - your power to vote on proposals or witnesses increases, allowing you to have some influence on the blockchain's governance (although significant changes require a lot of HP)
Increased Trust on the blockchain - it helps maintain overall trust in the blockchain, showing that many HIVE tokens have been powered up to HIVE POWER, indicating trust of the community and serving as a positive indicator for the blockchain.
Increased trust on individual Hive user - it also helps others trust you, showing that you are here for the long term and not just trying to quickly withdraw Hive.
Increased Security - if, for some reason, someone gains access to your account keys and steals them, they can withdraw all your HIVE, but not your HP instantly. When they try to power down that HP, you will be alerted, and you can recover your keys and your account even before the first power down received which takes 7 days, enough for you to secure you keys again.
Now that we have seen so many benefits, let's look at a few drawbacks
13 weeks long wait time for power down - It takes 13 weeks to convert HP to HIVE, 1/13 HIVE per week. (e.g. if you have 1300 HIVE POWER (HP) in your account and you request to 'power down' that HP to convert it to HIVE, you will receive 100 HIVE every week for the next 13 weeks). During this time, the price of HIVE could fluctuate significantly, causing you to miss a selling opportunity.
Can't trade them like liquid HIVE - If you have liquid HIVE (HIVE that is not converted to HP), you can trade it at any time, convert it to HBD, or send it to another account. But this cannot be done with HP, you have to convert it to HIVE first.
Now let's talk about HP delegation.
HP delegation is like a loan that you can give to another account, and they can take back the loan without your permission.
For example, let's say account "A" has 100 HP, and another account "B" delegates 200 HP to account "A." Now, effectively, account "A" has a total of 300 HP (100 own HP + 200 delegated by "B"). Now, "A" will see an increase in their vote value and receive more curation rewards. Why would account A delegate HP to account B and what benefits can account B receive?
Case 1 - To help newbies get more Resource Credits - Account "A" may be a new account, and you are delegating some HP to help them. (I mentioned that HP provides Resource Credits (RC) that help new accounts write posts, comment/vote, etc.) (This does not provide any financial benefit to Account "B," it is just helping others)
Case 2 - Getting some tokens as rewards - Account "A" may be giving you some tokens in return for the delegated HP (for example, the Holozing community gives ZING tokens if you delegate your HP to them)
Case 3 - Getting better curation APY/APR - Account "A" may be a curation project like curangel, ocdb, etc., that sends you a portion of the curation rewards to your account daily. These curation accounts generally maintain good curation APR, which some people cannot achieve by manually curating/voting, so they delegate their HP to these projects and receive daily rewards in their account.
Case 4 - Just to help a project/community - You may want to delegate your HP to an account that is doing good work or helping people on Hive, so you can also delegate your HP to support them. This may reduce your curation reward, but it benefits the project. (I delegate some of my HP to such projects because they deserve it)
Case 5 - For gaining more chances of curation (considered bad in some extreme cases) - Delegating HP to an account could increase your chances of receiving upvotes, or they could add you to their private upvoting list, resulting in more and larger upvotes. Some projects do this without giving any curation rewards to their delegators. So you can support a project/community by doing this.
There are some obvious drawbacks of HP delegation
Chances to support a bad element/account without realizing - You may not realize who is receiving upvotes from your HP (you may know, but you may not pay attention), and sometimes you end up supporting people you shouldn't. You do not have control over where your HP is being used. However, there are many curation projects where you can delegate your HP.
Some might consider it a bit selfish - If you delegate a lot of your HP to someone else at the beginning, you will have very little HP left in your account, and your friends may receive fewer upvotes. This may seem selfish, especially to those who are giving you good upvotes using all their HP, while you are only using a small portion of your HP.
Could lead to RC problems of your own - Some people delegate all their HP, which depletes their Resource Credits (RC), preventing them from posting/comments/voting. So you should grow your account a bit before delegating your HP to avoid any RC problems.
Some might consider it lazier than manual curation - Self-voting (manual curation/voting) gives you full control, and people may think you are a lazy curator if you delegate your HP. With manual curation, you can decide how much percentage to upvote a post based on your own standards. This control is lost when you delegate your HP.
If you have any questions or suggestions that should be added, please let me know in the comments, and I will make the changes.
Hive pr bhot logon ne mujhse HIVE or HIVE POWER ke baare main pucha hai or maine bhot logon ko btaya hai baar baar lekin ab last time jab kisine Indian subcontinent ke dosto ne pucha toh mujhe lga ki ek detailed reply deta hu or us reply ko blockhain pr post kr deta hu, jisse main ek link de sku or hopefully unko samajh aa jae.
Iss post main maine HP Delegations ke advantages or disadvantages pr bhi baat ki hai. Toh ho skta hai aapko Delegations ke baare main achi jankaari ho jae.
Chlo shuru se shuru krta hu
HIVE = Hive Blockhain ka coin hai, iski value crypto market or "supply or demand" ke basis pr upar neeche hoti rhti hai.
HIVE ko aap kabhi bhi kisi or account ko transfer kr skte ho or isko aap HBD (HIVE Backed Dollar) main bhi convert kr skte ho.
HIVE POWER (or HP) = Aise HIVE jo ki "staked"/"PoweredUp"/"locked" ho gye hai.
HIVE ko HP main krne se ye fayde hai:
Increased Upvote Value - aapke Hive account ki upvote value badhti hai, jisse aapko jyada "curation rewards" (upvotes krne pr jo reward milta hai) badhta hai
Increased Resource Credits (no. of transactions possible) - aapko jyada Resource Credits (RC) milte hai, jo ki Hive blockhain pr transactions krne main use hote hai (upvoting, posting, commenting, sending tokens, even 'marking all notifications as read' etc sab hi transactions hai)
More dividents/interests on HP - aapko kuch interests bhi milta hai HP pr, abhi ye kuch 3% ke kareeb hai saal ka (ye curations rewards se alag hai)
More say in Proposals and overall governance -or kuch operations jaise proposals ya witness vote ki power badh jaati hai jisse aap blockhain ki governance ko thoda change kr skte ho (lekin iske liya bhot jyada HP chahiye koi significant badlav laane ke liye)
Incresed Trust on the blockchain - or ye ek tareke se blockchain ke overall trust ko maintain krta hai, ki log dekhte hai ki itne saare HIVE ko HIVE POWER main convert kiya gya hai toh kuch toh khaas baat hogi hi or ye positive indicator hai blockchain ka.
Increased trust on indivdiual Hive user- or isse logon ko aappr bhi trust aata hai ki aap long term ke liye yahan pr ho or kahin Hive nikal kr bhaag nhi rhe ho
Increased Security - agar kisi karan aapse apki account ki Keys leak ho gyi or kisi or ne vo dekh/chura li toh vo aapke account main se saare HIVE nikal lega lekin HP nhi nikal payega or jab vo us HP ko power down krne ki request krega toh aapko pta chal jaega ki aapki keys leak ho gyi or aap keys recover kr skte ho.
Ab itne saare fayde hai toh ek do nuksaan bhi dekh lete hai
13 weeks long wait time for power down - 13 weeks lagte hai HP ko HIVE main convert krne ke liye, 1/13 HIVE per week. (eg. agar aapke account main 1300 HIVE hai or aapne 'power down' request ki us HP ko HIVE main convert krne ke liye, toh every week aapko 100 HIVE milenge for next 13 weeks). Or itne time main kya pta HIVE ki price kahan se kahan pahuch jae or aap ek sell opportunity miss kr de
Can't trade them like liquid HIVE - aapke pass liquid HIVE (vo HIVE jo HP nhi hai) ho toh aap kabhi bhi usko trade kr skte ho, convert kr skte ho HBD main or send kr skte ho kisi or account ko. But HP ke saath aisa nhi kiya jaa skta aapko usko phle HIVE main convert krna pdega.
Ab HP delegation pr aate hai.
HP degeation ek tareh se loan hi samajh lo jo aap kisi account ko de skte ho or uski marzi ke bina hi vo loan vapis bhi le skte ho.
Ab samjho account "A" ke pass 100 HP the phle se or doosre account "B" ne usko 200 HP delegate(loan) kr di. Ab account "A" ke pass effectively/total = 300 (100 own HP + 200 delegated by "B"). Toh ab "A" ki vote value increase ho gyi or usko jyada curation milne lga. Ab account A ko kyun delgeate krna hai usse account "B" ko kya kya fayde ho skte hai?
case 1 - To help newbies get more Resource Credits - Ho skta hai account "A" new account hai or aap thoda bhot usko HP delegate kr rhe ho uski help krne ke liye. (maine btaya tha ki HP se Resource Credits (RC) milte hai jo ki us new account ko post likhne, comment/vote krne etc main help krte hai) (Isse Account "B" ko koi financial fayda nhi hota bs doosre ki help hoti hai)
case 2 - Getting some tokens as rewards - Ho skta hai account "A" koi aisa account hai jo aapko uss delegated HP ke badle main koi token de rha hu (jaise Holozing community aajkal ZING token deti hai agar app unko apni HP delegate krte ho)
case 3 - Getting better curation APY/APR- account "A" koi curation project hai jaise curangel, ocdb etc vo aapko aapke hisse ka curation reward account main vapis bhej dete hai daily. Vo curation account generally acha curation APR maintain krte hai jo ki kuch log manually curate/vote krke nhi kr paate toh vo log aise projects ko apni HP de dete hai or saara unka voting ka kaam vo curation project sambhal leta hai or apne aap aapke account main daily HP bhejta rhta hai.
case 4 - Just to help a project/community ho skta hai aap kisi aise account ko delegate krna chahte hai jo ki acha kaam krta hai, ya hive pr help krta hai logon ki toh aap unko bhi apni HP delegate kr skte hai, usse aapko toh koi fayda nhi hoga ulta thoda curation reward kam hoga lekin uss project ka fayda hoga. (main apni kuch HP aise project ko deta hu, kyunki vo deserve krte hai)
case 5 - For gaining more chances of curation (considered bad in some extreme cases) - aapne jiss account to HP delegate ki hai vo aapko upvote krne ke chances badha de, ya aapko upvote krne ki koi apni private list main add krde jisse aapko jyada upvotes mile ya bde upvotes mile. Kuch project ye krte hai without giving any curation reward to their delegators. Toh aap kisi project/community ko support krne ke liye bhi aisa kr skte hai
Ab HP delegation ke kuch obvious nuksaan toh hai hi
Chances to support a bad element/account without realising - aapko pta nhi chalta ki aapke HP se kisko upvote mil rhe hai (pta chalta hai pr aap itne dekhte nhi) or kabhi kabhi vo aise logon ko support kr dete hai jisko nhi krna chahiye. Toh aapke pass aapke HP kahan use ho rhi hai uspr control nhi hota. But bhot saare curation projects hai aap doosre ko bhi apni HP de skte ho.
Some might consider it a bit selfish - agar aap shuru main hi apni bhot saari HP delegate kr dete ho kisi ko aapke account main bhot kam HP bachti hai toh aap apne dosto ko upvote value kam milti hai. Toh ye thoda selfish lag skta hai, especially unko jo aapko acha upvote kr rhe hai apni puri HP ke saath or aap unko bs apni thodi si bachi hui HP ke saath kr rhe ho.
Could lead to RC problems of your own - koi toh apni puri hi HP delegate kr dete hai jisse unke Resource Credits (RC) khatam ho jaate hai or vo post/comments/vote bhi nhi kr paate. Toh phle apna account thoda grow krna chahiye HP delegate krne se phle jisse aapko koi RC ki problems na ho
Some might consider it lazier than manual curation - Khud se upvote krne main (manual curation/voting) aapke paas pura control rhta hai, or log aapko lazy curator nhi samjhte or overall aap hi decide kr skte hai ki aapne kis post ko kitne percentage upvote krna hai aapke khud ke standard se. Toh ye control HP delegate krne se nhi rhta.
Agar kuch sawaal ya kuch suggestions hai jo isme add krne chahiye toh neeche comments main bta dena or main changes kr dunga.
Thanks for reading!
