It's always interesting to see different perspectives on HIVE as a token. Lately, we've been seeing some chatter on Twitter about HIVE and a lot of people have 0 understanding of how it actually works.
I have always been bullish on the Hive ecosystem from a technological and community point of view. I've been on this chain for a while and I've seen how adaptable, flexible and resilient not only the blockchain is but the community is.
Our community has stuck through thick and thin. Moments where it looked like we weren't even going to make it.
In the end, we prevail. Always.
But that is a story of community. That is a story of technology.
Sometimes those stories don't align with an economic story. Today, let's focus on that economic perspective.
HIVE: Will it Ever Recover or Die in the Bear Market?
The HIVE token is an interesting one. We have an economy unlike any other. With users, witnesses and content creators earning the token for various activities across the chain.
We also have HBD which acts as an on-chain stablecoin and now pays 20% APR.
Some people are debating a lot of the mechanics on HIVE. Some people have said we should get rid of the content creator/curator rewards pool. Others are saying we should lower the HBD stablecoin APR.
@dalz puts out some fantastic content about the economics behind Hive and HBD. I think it's quite obvious that having HBD at the 20% rate makes the Hive economy a lot more attractive to the outside world.
One thing that Hive has always lacked is a good outward facing image. Most people think of us as some kind of cultish following around a small market cap token.
HIVE is small relative to the broader crypto world but we have a lot of really amazing technologies here and projects that have built amazing things.
Why is HIVE Not More Valuable?
I think its safe to say that the tech and dApps on Hive are severely undervalued. As an ecosystem, we are severely underpriced in the market.
BUT how do we fix that?
You need to bring in capital from the outside. You need VCs. You need institutional money. You need MORE retail investors.
That's how you grow the market cap of HIVE.
In my opinion, there are a lot of different ways to do this. 2 of the ways that I tend to think will have the most profound impact in the coming years are:
- Resource Credits
- HBD
Resource Credits
RCs or Resource Credits are Hive's equivalent of gas fees. Instead of them being a one-time feed that you pay from your wallet, they are rechargeable credits that you get for holding HIVE POWER.
The more HIVE POWER you hold, the more rechargeable Resource Credits you get each day.
As a project owner, RCs have some value already. LeoFinance is working on onboarding a lot of people and we delegate RCs and HIVE POWER on a daily basis to allow those new users to transact.
RC pools / delegations are relatively new on the Hive blockchain. These things will begin having a much more profound impact in the long-run as more projects and dApps actually start onboarding new users.
If LEO onboards 100,000 new users, RCs are going to become incredibly valuable. As a project, we already hold millions of HIVE POWER but we may need to acquire millions more if RCs start to become demanding.
Now imagine 5, 10 or 25 projects that try to do the same as LEO... Now we have to compete for RCs.
HIVE will moon, trust me.
HBD
HBD is the hot debate. Some people don't like the 20% APR and others think it's a saving grace.
I believe that it's a HUGE success on Hive. It's a marketing stunt as much as it is a way to build up our economy.
Some people think debt is bad.
Some people think giving out passive APR is bad.
Those people clearly haven't seen companies and governments grow to behemoth-level economies by issuing debt.
The key is issuing debt in a smart, conservative and growth-oriented manner.
If the Hive ecosystem brings in whales with tens of millions of dollars by paying a measly 20% APR, is that not valuable to the ecosystem?
Imagine that many of these whales come in for the 20%. Then they start poking around at HIVE. They start seeing the growing use case of RCs. They start seeing the Hive projects who are trying to build massive economies of their own.
It all feeds unto itself.
I'm starting to sound like @taskmaster4450.
The 20% APR on HBD has gotten me really excited about HIVE as a token once again. RCs have always been a long-term play to me, but HBD seems to be a quick-hit that we can deploy to bring some real whales into the game.
I think it's vital that we not only keep this APR but actually leverage and market it to a broader audience of investors.
Look at @dalz's new tool and you'll see only ~6% debt. The overall HBD supply has actually been contracting or barely growing during the reign of the 20% APR.
This shows us that the debt is completely under control. Actually, issuing more HBD will help a current issue that whales have which is the difficulty to buy and stake HBD / sell HBD when they want to.
An illiquid market. We are far from a debt problem.
I believe RCs will play a major role in HIVE's future but I also think the 20% APR economy that can be built around HBD will bring massive amounts of institutional-grade money into this ecosystem and I am all for that.
What are your thoughts? Drop a comment below!
About LeoFinance
LeoFinance is a blockchain-based Web3 community that builds innovative applications on the Hive, BSC, ETH and Polygon blockchains. Our flagship application: LeoFinance.io allows users and creators to engage & share micro and long-form content on the blockchain while earning cryptocurrency rewards.
Our mission is to democratize financial knowledge and access with Web3.
Twitter: https://twitter.com/FinanceLeo
Discord: https://discord.gg/E4jePHe
Whitepaper: https://whitepaper.leofinance.io
Our Hive Applications
Join Web3: https://leofinance.io/
Microblog on Hive: https://leofinance.io/threads
Delegate HIVE POWER: Earn 16% APR, Paid Daily. Currently @ 2.8M HP
Hivestats: https://hivestats.io
LeoDex: https://leodex.io
LeoFi: https://leofi.io
BSC HBD (bHBD): https://wleo.io/hbd-bsc/
BSC HIVE (bHIVE): https://wleo.io/hive-bsc/
Earn 50%+ APR on HIVE/HBD: https://cubdefi.com/farms
Web3 & DeFi
Web3 is about more than social media. It encompasses a personal revolution in financial awareness and data ownership. We've merged the two with our Social Apps and our DeFi Apps:
CubFinance (BSC): https://cubdefi.com
PolyCUB (Polygon): https://polycub.com
Multi-Token Bridge (Bridge HIVE, HBD, LEO): https://wleo.io