Disclaimer: This post is not financial advice. I am posting information that is accurate the the best of my knowledge.
I had to do a lot of digging to get this info and figured Id share what I've found out. I will talk more about how this lack of communication is hurting the project a little later in this post.
I'll share what I know as well as some questions, concerns and suggestions I have. I will try to keep this relatively short and to the point.
@dhedge please correct me where I get things wrong/misunderstand.
What is DVS?
DVS is a layer 2 token on hive. Dhedge Voting Shares. I has been live for a few months now but not much official info about how it all works has been made. Here' s what I know:
How it works:
For those with staked DVS every 2.5 hours the system does a snapshot based on available voting power. This amount is divided amongst all stakers -based on how many tokens they have staked-and put into a database (voting shares) . These shares continue to accrue every 2.5 hours.
When someone with voting shares makes a post ,40% of those shares are converted to an upvote (up to a 100% upvote).
So what happens if the HP of the dhedge voting bot suddenly decreases?
"If we lose a big chunk of HP like we just did, some larger percentage upvotes will be given out to try and compensate for the missing HP, but things will balance out as those shares get spent." -dhedge
Personally, I am very glad I stumbled across this info . I had questions about sustainability. I still have some questions but this clears a lot of things up. The snapshot/voting share distribution is based on the voting power at that time. This is important for long term sustainability.
Earn DVS by delegating to dhedge
The two main ways to acquire DVS is either to purchase them from the market or you can delegate HP to dhedge to earn daily DVS (and some dhedge). At first that rate was a flat 21% APR however that has changed a bit. Here's how it works now:
"...DVS code has been updated creating a green zone price for DVS. Right now this green zone is 0.5-1 HIVE per DVS. Below 0.5 APR will be below 21%, in that zone APR will be 21%, and above that zone APR will be above 21%. This has been added on top of the average price setup."-dhedge
Basically when the price is up -emissions go up, if the price falls so does the emission rate. Price is based on 72 hour rolling average I believe.
A few weeks ago some people manipulated the market and increased the emission for the day by 100x or something crazy like that. These changes hope to prevent things like this in the future.
One can never really predict what the market can do but before bad actors were "incentivized" to lower the price to receive more DVS tokens from delegations. Now that incentive is actually to keep the price up if hte goal is more DVS tokens for delegations.
The dhedge account and other accounts related ot the project are buying up a lot of the tokens that were minted in the clusterfuck a few weeks ago. It will be interesting to see what the market does in terms of token price.
Personally the price of this token is not as important to me as the value.
I am not sure what dhedge has planned to do with the tokens- this may not yet be decided.
This is basically all I know for now. Here are my thoughts. questions etc
Questions:
Are there any plans besides relying on delegations to increase dhedge's HP? If so what are they?
Is setting up a liquidity pool and using the tokens that are being bought back as rewards something that's being considered?
This could be a great way to distribute those tokens that have been bought back to liquidity providers.
What is the plan to increase communication?
I talk a lot about strategy to my Hive friends and they all say the same thing about dhedge/dvs-the communication sucks big time and makes the project less trust worthy.
Even simple "I'm working on things" posts would be better than nothing. Even if you aren't sure of a solution/action plan -communicate that as well.
Failure to communicate sends the message to the community that you don't care /respect them -even if that's not the case and you are simply overwhelmed/busy etc.
The dhedge/dvs community has been very patient waiting for an official guide post /more information in general abut how DVS works. I hope this can at least partially fill in that gap.
Taskmanager is one person doing a hell of a lot of work. Maybe it's time to add another person to help out with some tasks?
Weekly update posts are a good plan even if that update is simply stats etc. This can be automated for the most part.
I think having a consistent presence is important especially to new adopters/people not familiar with dhedge.
That's it for this post. I hope I got all of the information correct. I will do my best to edit this post for accuracy but please also read the comments.
I plan to do a separate strategy post on what I plan to do soon. Now that I have more information and understand how it works (I think lol).