In our latest conversation with Starkerz during our very first Hive Meetup Guatemala, he talked about Value-Creation economic systems on HIVE. Projects that are part of this system are able to create value through some activity and receive $HIVE and $HBD through those value-creation activities. They are then able to spend some of that $HBD or $HIVE on suppliers, such as editors, graphic designers or other businesses such as restaurants, coffee shops and barber shops!
We were actually very close to getting hair and beard cuts with an $HBD barber ourselves, but Starkerz's flight got delayed.
Recording Box is a value creation system
This is a visual representation of the value creation system we are currently operating at @recording-box:
Knowledge to musicians
It starts by building knowledge with existing clients (musicians) on how the HIVE ecosystem works.
We help them create a HIVE account, help them install Keychain on their mobile phones and help them record a live performance so they can introduce themselves to the HIVE community.
We also show them the different communities and tags and how to use them.
Here's an example. @estebanm is the latest musician we've onboarded to HIVE:
Knowledge to shops
While we are educating musicians, we are also educating shops (on the right side of our graphic). The lowest hanging fruit are shops that already accept $BTC over the Lightning network. They are already familiar with Lightning terminals and holding BTC. We explain the benefits of also considering holding a stable coin like $HBD to avoid price fluctuations of an asset like Bitcoin.
By holding a stable coin, they are more likely to keep that money as cryptocurrency instead of immediately changing it to fiat, which is what they currently do when receiving Bitcoin.
Some of these shops-owners are also very interesting individuals who could potentially be content creators as well, showing people about yoga, vegan lifestyle, plants, coffee, etc. So we also teach them how content creation can be monetized in the HIVE ecosystem.
Tying it all together
We've educated and onboarded musicians. And we've educated and and onboarded places where musicians can spend $HBD. Now we introduce them to each other. Musicians can now earn HIVE/HBD from content creation and spend it on coffee or studio time.
Recording Box is also HODLing
OK, so now that the recording studio is both receiving HIVE & HBD as payment, and also spending HIVE & HBD with local businesses as well as other providers (designers, programmers and editors in places like Venezuela).... What else are we doing to make this value-creation system more robust?
HODLing of course!
Holding on to $HIVE
The studio has its own HIVE account. Some of the money we receive is being kept to build a Hive Power stash for this account to become a curation account for musicians and creators. I tried to start this back in 2019, but I think it didn’t work too well, as I first needed to establish my credibility as an individual Hivean first.
Perhaps now that I'm slightly more well known, I'll be able to make the project grow and maybe get some delegation from other curation projects.
Holding on to $HBD
Some of the money received is also kept in HBD. By holding on to $HBD, Recording Box can earn 20% APR on savings. We can then use this new HBD to build the business' treasury as well as pay part of the salaries of our employees.
Next steps - Hive Party proposal (working on it)
The very next thing I'm going to do now that our value creation system is up and running and there are a few Hive musicians and shops in the area, is put together a HIVE party. Hopefully I'll be able to find a few sponsors here on HIVE who'd be interested in having their logo on display at the venue in exchange for some liquid $HBD.
We can document the whole thing, and produce lots of content to be shared on social media showing real life use-cases for HBD.
I'm putting together a budget and a detailed explanation of the event to see if we can make it happen.
I'll keep you posted.
Do you know of any other businesses that are building value-creation systems on HIVE? I'd love to check them out.