This weekend, I tried to convince somebody to join Hive and again I don't think that I managed to convince the person. My success rate in this respect is close to zero but it's not the thing that I want to talk about. While trying to explain how the hive blockchain works, I told my friend something that I find pretty powerful and I thought it would be a good idea to write a post about it. Here the post in question...
Your stake defines your power on Hive
When you stake Hive, this Hive becomes a kind of different currency that we call Hive Power. With powered up Hive, you can increase your curation rewards and your vote value increases as well. In addition to that, you get around 2.6% apr from the blockchain for having hive staked. When you power up, it matters therefore on a financial level but you also have a bigger say in terms of witness voting. The more Hive Power you own, the more important your vote for the witnesses election process is going to be.
You define how hive is distributed
There is however a side about all this that is often forgotten: With your Hive Power you can determine how Hive is distributed.
On Hive, there is a reward pool that is defined in code on the blockchain. Every block, a certain amount of Hive is distributed among all the posts and comments that were done on the blockchain. It's the votes on these posts that define who gets how much. However, it's not the quantity of these votes that matters but how much Hive Power lies behind each vote.
Let's say you have a stake of about 5000 Hive. This would give you an upvote value of around 0.1$ today. This value fluctuates according to Hive prices. This means that you can distribute 10 votes of 0.1$ each per day. So per day, you define how 1$ of Hive is distributed. Of this amount 50% will come back to you and 50% will go to the authors.
If you have 50'000 Hive Power on your account, you would be able to distribute about 10 times this amount. You can distribute 5$ worth of Hive per day to authors of your choice and you keep 5$ for yourself.
The bigger your part of the overall Hive Power, the more value you can distribute
If you grow the percentage of your stake in respect to the complete amount of staked Hive, you will define the distribution of a bigger part of the reward pool.
A big stake therefore not only helps you to earn more money, you can also define how a bigger part of the reward pool is distributed.
The bigger your stake, the more good you can do!
You want to help people in poor countries? You can vote for authors from these countries. You want to support an idea on the blockchain? Vote for the posts of the project. You want to help developing a game on hive? Vote for the posts of this game. The bigger your stake, the more good you can do on Hive!
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