Cryptocurrency Projects usually mint tokens daily, and use these tokens to pay for blockchain activities.
When I first learned about this blockchain's predessor and it's abundance economy I was surprised to learn about the Reward Pool, the source of the blockchains riches.
The Hive Blockchain mints new tokens daily and sends some to the people running computers with copies of the entire blockchain ledger and other tokens are sent to the Reward Pool, where HivePower directs tokens from the reward pool to people creating content or upvoting content.
This minting of tokens which refills the Reward Pool daily is also called token inflation. This token inflation is also the source of the abundance we have in cryptocurrency.
Paradoxically we are afraid of inflation in the real world, and we are afraid of the government printing money because it is thought to cause inflation.
While here in cryptocurrency we love token inflation because it pays us.
One big difference is that token inflation distribution can be decentralized and distributedthroughout a community, enriching many, while government currency printing frequently called inflation benefits a much smaller group of people who are already rich.
The size of the Reward Pool and it's daily regeneration, along with the daily regeneration of voting power alllowing people who buy HIve once to redirect Hive from the Reward Pool everyday without buying more HIve is an amazing thing.
This is almost a perpetual money making machine, or as close as we have ever come to it.
The big problems are maintaining value when there is inflation. Too much inflation, to many tokens, and the value of tokens goes to zero. But get the token inflation rate right and the token maintains it's value and everyone in the ecosystem is happy.
This concept of the Reward Pool, Daily regeneration of voting power, and the situation where the Reward Pool is practiocally a perpetual money machine is very hard for people to understand completely, because even though people say they understand it, they still behave as if one person getting Hive robs them of Hive. They fail to completely internalize the concept of abundance.
If you grasp it, you can reduce many ill feelings you feel which are somewhat based on concepts of competition and limited resources, which makes you angry about the rewards of others.
If you realize this you also realize you should choose these assets to build your financial future.
Assets grow in value, assets may generate income, and assets can be borrowed against.
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Shortsegment
About shortsegments
Shortsegments is a writer focused on cryptocurrency, the blockchain, non-fungible digital tokens or NFTs, and decentralized finance for over five years.
Leofinance is a social media community on Hive, where you can write long articles or short tweets called Threads about any topic and join a passionate social media community.
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Hive
About Hive
Hive is a blockchain and a community with several hundred decentralized applications on it, including social media platform Hive were you can earn Hive cryptocurrency tokens and Hive Backed Dollars, a stablecoin. It is also the home of the social media platform Leofinance where you can earn Hive, Hive Backed Dollars and Leo the cryptocurrrncy reward token of Leofinance. Learn more at this link:
