Newbie Initiative Task 5 - Layer 2 Tokens & Use of Tags

Why do communities create tokens on Hive?

The Hive Blockchain is a unique blockchain that offers more than a social media/social blogging features, but expands to being a new foundation for most new blockchain projects. The design of the Hive blockchain has made it possible to new crypto projects to be birthed on it, a very good example is Leofinance which today feels like a new blockchain on the Hive blockchain itself. To make this possible, the Hive blockchain permits the creation of Second Layer Tokens (Layer 2 tokens) or community tokens.

Common examples of Layer 2 tokens include: Leo, POB, NEOXAG, VYB, and more.

Community tokens (Layer 2 tokens) are primarily built to reward community members and add to the uniqueness of a community. With these second layer tokens, a specific community could incentivize her members and usually, with the more community tokens a user earn, his/her presence will be felt more in the community.

In my opinion, I also believe strongly that these tokens are designed to help a community build its own economy. With these tokens, community members could maximize their earnings beyond Hive and HBD.

Let me quote @tomlee in his interesting post about layer two tokens:

In the future, second-layer tokens will produce more whales than Hive itself will ever produce as well as bring more people to the space than Hive itself. How do I mean? Take for instance, a sportsman or an accountant; what would possible draw him to the Hive blockchain will not be the Hive token itself rather the SPORTS and LEO tokens respectively.

Explain why the use of tags is very important on Hive

Tags are keywords that can be used to direct attention towards a specific post. In the midst of a stream of content being produced daily on the Hive blockchain, the need for correct tag usage cannot be overemphasized. Using the correct tags helps curators of a particular community easily see posts made in these communities; it also helps curators looking for a specific content niche to easily find posts made within this niche.

The above point also means that ones use of tags may be the thin divide between your earning good author rewards and the lack thereof.

Tags are also SEO tools. In Search Engine Optimization (SEO), the use of correct tags will result in a post gaining more search engine visibility. So, a user who wants his/her content to be more outward facing than centred on Hive should consider using proper tags.

An outward facing content is one easily discoverable by a search engine.

Correct tag use should follow this order: tags related to the content, next is tags for the community, and finally general tags.

List some general tags you know on Hive. Explain the difference between these tags

There are a lot of tags on the Hive blockchain:

TagOriginating Community
POB/proofofbrainProof of Brain
OCD/OCDBOriginal Content Decentralized
NeoxianNeoxian city

What are the various ways you can earn tribe tokens on hive?

A user can earn tribe tokens by doing one or more of the following:

  • Using the tribe token tags
  • Joining the tribe (community) and actively engaging
  • Buying/swapping other tokens for the community token on the different decentralized exchanges (DEX) built on Hive.
  • Staking existing tokens for more token rewards.
  • Delegating your community tokens for more token rewards
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