Hive Explained: Article Five:The Reward Pool and Upvote System on Hive

A Single Candle Can Light A Hundred Other Candles.

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The title is the first phrase of a poem about a single candle being able to light one hundred candles without losing it’s flame. And this same metaphor also applies to the Upvote and token reward system here on Hive.

The economy here is both simple and complex.

Simple in that your upvote directs #rewards called #Hive to others, not from your wallet, but from the rewards pool. Hence the name Rewards Pool.

Complex, in that the Reward Pool gives you new votes every day, these votes direct portions of the Reward Pool to whomever you vote for,and so you give people money from the Reward Pool, not from your wallet. So your wallet balance is not diminished, by you directing Rewards to others from the Reward Pool with your upvotes. So your upvotes have real value

Complex in the your upvotes bestow rewards based on how much Hive you bought and Staked, a process called powering up here. It changes your Hive to HivePower, the Powered up or Staked portion of your Hive. The more Hive Power or HP, the larger amount of the reward pool is directed by your vote.

Complex in that the reward pool is replenished each day. You get ten 100% votes each day, or twenty 50% Votes, or forty 25% votes each day. But any votes you don’t use are not stored, but expire. But the next day you get those same votes again. Your upvotes recharge each 24 hours

This brings us back to the Candle Metaphor

In this way you are like a candle, lighting the candles of others, yet none of this comes from your wallet. So just like the flame of a candle is not diminished by lighting the fire of many other candles, so is your wallet not diminished by directing rewards to many other wallets.

So go forth and be like a candle, and light up the darkness.

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The End..for now.

@shortsegments

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Shortsegments is a writer focused on cryptocurrency, the blockchain, non-fungible digital tokens or NFTs, and decentralized finance. He has been a community member for more then three years.

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Read more of shortsegments articles here

He is also a builder, with two current projects:

No Loss Lottery

The first is the No Loss lottery, a prize linked savings account here on Hive, which awards more the 100 Leo in prizes weekly, and which recent surpassed 1000 tickets sold. Learn more here

Easy DeFi Yield Farming made Easy

His second project is Easy DeFi, which creates a community investment pool allowing community members not yet confident enough to invest on their own, a chance to easily invest in yield-farming and staking on Cubfinance. Learn more here

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Hive is what social media is evolving into, with content creators owning their accounts, their content and censorship resistance is being developed. Hive is an old, but new thing, in the process of becoming better.

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