#hive

If I were Hive Dictator for a Day...

ats-david@ats-david (75)1936d

With the chance to be Hive dictator for a day, this is what I would do:

Reduce social rewards from 65% of the token inflation pool to 5%.
Increase staking rewards from 15% of the inflation pool to 65%.
Increase witness rewards from 10% of the inflation pool to 20%.
Reduce unstaking time to 5 days.
Increase the number of consensus witnesses to 30+1.
Increase the number of witnesses needed for consensus on hard forks to 25.
Reduce witness votes per account to 20.
Require a minimum of 10,000 staked HIVE to run a consensus validator node (witness).

These changes would be made in addition to currently proposed code changes, such as HIVE-to-HBD conversions and witness vote decay. Numbers 1-4 would be the priority and have the most immediate and significant effects.

Why would I do such a thing?

Hive (and previously Steem before it) just continues to bleed out. Only about 36% of total supply is staked. Around 54% of non-staked HIVE is stored in known exchange wallets. Unstaking still outpaces Staking from week to week.

The 3% APY on staking rewards isn't attractive enough to stake HIVE for 13 weeks and it seems that few investors care about the social media part of Hive, so curation incentives aren't much of a factor. A 4x increase in staking rewards and a large reduction in unstaking time could reverse the long-standing trend of unstaking and sending funds to exchanges where they can be staked in other tokens or traded for other tokens that offer better yields or more speculative upside.

More consensus witnesses, better incentives for them, and a reduced number of witness votes could help attract better witnesses and diversify the top 30. As witnesses are paid in staked HIVE, the incentive to hold those distributed tokens due to much higher staking yields is greater.

Hive needs stronger hands but we don't incentivize it - outside of the social rewards system which is almost entirely unattractive to investors. Locking funds for 13 weeks is also far too risky in conjunction with the social mechanics and given the history of the token's performance.

What becomes of Hive after the Day of the Dictator?

Hive would be left with:

A more decentralized blockchain
Three-second block times
Free transactions
A native decentralized exchange
A decentralized, native stablecoin that pays interest
A potential 12%+ APY for staking
A 95% reduction in unstaking time
A 92% reduction in layer-one social rewards
A potentially more diverse set of consensus witnesses
Better incentives to invest in and build out Hive's financial ecosystem

And that's just what we would have immediately after the changes are made.

I would then relinquish my dictatorial power, grab a nice frosty beverage, watch Hive flourish, and happily read all of the "Thank you!" comments from the joyous investors and users of Hive that had finally realized the genius of the plan. I would quietly retire to my newest Lamboyacht and count my HIVE stacks as they grow larger and larger every day, allowing for even more Lamboyacht purchases that would save the sad normie economy. Statues of me would be erected in town squares around the world and global citizens would speak glowingly to their grandchildren of the time when prosperity and humanity had been benevolently airdropped to the Hive people.

This is the future. This is the way.

Make it happen.

If you were Hive dictator for a day, what would you change? Let us know! Make a post and tag it with #hive-dictator!

Comments · 30

@hivebuzz(74)· 1876d
Congratulations @ats-david! You have completed the following achievement on the Hive blockchain and have been rewarded with new badge(s) :

You received more than 104000 HP as payout for your posts and comments.
Your next payout target is 106000 HP.
_{The unit is Hive Power equivalent because your rewards can be split into HP and HBD}

_{You can view your badges on your board and compare yourself to others in the Ranking} _{If you no longer want to receive notifications, reply to this comment with the word STOP}
@uwelang(79)· 1931d
Let us elect you as the dictator, most points are valid however economics are only a small problem of the chain, we still talk to much about tech, features - we do not have a story.
@nonameslefttouse(77)· 1932d
Hawaiian shirt day.
@alex1407(39)· 1933d
I still think Hive's unique offerings are relatively easy crypto onboarding and distribution. So I disagree with the drastic reduction in reward pool inflationLessons should be learned from elsewhere in the cryptospace, I don't think Hive should follow in the wake of crypto trends.

Posted Using LeoFinance ^Beta
@mephistophenes(52)· 1934d
Reducing unstaking time would be great. Having to wait 13 weeks to unstake is absolutely outrageous.

Posted Using LeoFinance ^Beta
@sbenbow(53)· 1934d
If I were a Hive Dictator for a day, I would :

1) Delegate the running of Hive to those who know what they are doing (I'm don't know enough about the runnings of the network yet, and I'm not too proud to admit it!); and 2) Relax on my Dictator's desert island paradise for the rest of the day

Posted Using LeoFinance ^Beta
@roleerob(71)· 1935d
Well-known definition of insanity @ats-david:

"... doing the same thing over and over and expecting a different result."

At least you are recommending a complete break out "from the box!" Nice!!

But ...

Sadly, having been "in here" for 3 years, I agree with @oldtimer ... I'll close with saying what I often find myself saying these days, "I hope to be proven wrong" ...

Posted Using LeoFinance ^Beta
@fabian98(74)· 1935d
Well, this is a dictator who thinks in everyone's best interest, you were much better than Saddam.

Posted Using LeoFinance ^Beta
@onthewayout(62)· 1935d
The changes that you propose to the distribution of inflation would not make any difference in attracting new investors...at best it would have a marginal gain.

Currently HP holders directly receive 47.5% of the inflation (15% from staking rewards + 32.5% from the reward pool). At this moment the inflation rate is ~7.62% so that equates to ~3.62%. With your proposal that would mean that stakeholders would get 67.5% of the inflation (65% from staking and 2.5% from the reward pool). That comes down to ~5.14% APR...hardly enough to divert investors from other projects out there.

The real APR is around 2.84x at the current staking ratio, so the current APR is more like 10.3% and your proposal would bring it up to 14.6%. An increase in the amount of hive staked would bring that multiplier down.

The problem is not how the inflation is distributed...you are mis-identifying the real issue.

The best performing asset over the long term is BTC. What are the tokenomics of BTC? Answer, the miners receive 100% of the inflation and investors receive 0% of the inflation. Let me repeat that...BTC investors receive 0% of the inflation.

Not ot only that, every time a BTC investor makes a transaction they have to pay a fee to a mining pool. As a self contained system BTC is setup so that only miners profit from its use...not investors. And yet, Bitcoin continues to outperform everything else.

Why is that? People believe that it will appreciate in value over time (in fiat terms) because of its limited supply. That narrative creates demand.

What narrative can we push that will drive demand for Hive? That is the real question.
@dswigle(78)· 1935d
I'll just let you be dictator! We have a better chance of survival.
@amr008(68)· 1935d

Reduce unstaking time to 5 days.

Except this , I would do something similar to what you have mentioned .

I believe the unstaking period is there to prevent panic dumps and I kinda like that idea .

Posted Using LeoFinance ^Beta
@agr8buzz(68)· 1935d
Solid! but too little too late

Posted Using LeoFinance ^Beta
@nathen007(73)· 1935d
You wouldn't need to grab a frosty beverage, I'd send you a crate of them AND the fucking fridge to put them in!
@jfang003(78)· 1935d
I don't know if I would reduce social rewards to 5% because it would kill people trying to build their bags here. I personally think there would be a bunch of people just quitting due to the sudden change in rewards. But I think the communities with tokens would probably be fine with these changes.

Posted Using LeoFinance ^Beta
@amr008.leo(43)· 1935d

Your post was promoted by @finguru
@lebah(71)· 1935d
Follow the rules and follow the most profitable

Posted Using LeoFinance ^Beta
@lnakuma(71)· 1935d
So good dictators do exist in this world.

Posted Using LeoFinance ^Beta
@whatsup(76)· 1935d
Let's say ATS was dictator and got every thing on his list done....

Who would know or care outside of Hive?

Look, we changed up the economics that no one knew about, with new economics no one knows about.

to be fair some of the ideas are good, but frankly as long as there is no commitment to recruiting something... It will not matter.

You can market to end users, or developers or investors... but you have to market to someone in a market that is hot as hell and has 9000 projects, many of which aren't concerned with routing all the inflation back to a handful of stakeholders.
@pfunk(73)· 1936d
I still think Hive's unique offerings are relatively easy crypto onboarding and distribution. So I disagree with the drastic reduction in reward pool inflation.

Because it's a balance between security and reward dilution, I think if you increase the number of witnesses to 30 there should be an increase in rewards. And voting for only 20 witnesses with 25 required for a hard fork is reasonable. But would the extra cost of those witness positions be worth the cost to inflation elsewhere? I don't know.

I remember years ago you argued strongly against high staking inflation, and granted Steem's was pretty ridiculous. But at this point trying to chase the current staking mania seems too little too late. Lessons should be learned from elsewhere in the cryptospace, but I don't think Hive should follow in the wake of crypto trends. They tend to be short-lived.
@trumpman2(59)· 1936d
As if we dont have enough shitty witnesses

Posted Using LeoFinance ^Beta
@enforcer48(75)· 1936d
@mindtrap(75)· 1936d
You know it's been almost a month since the last post I made and your post is exactly what I needed to be active again.

Who knows, maybe some smart ideas pop up and those who pull the strings start implemetning to the code things that DO matter...

Bye for now...dictator
@eroche(69)· 1936d
Is there a recent (Non Technical) roadmap for Hive?

Posted Using LeoFinance ^Beta
@antisocialist(75)· 1936d
I think I would expect more from the dao. Things made there should pay the upkeep, iyam. If it is built with dao money, and it makes profits, it should pay the dao back, at least. Why are we paying for things to be built that bring profits to the builders, but not the hive? Do we really have 80million hive worth of 'improvements' to be made?

I'd add staking rewards to the savings accounts. The more liquid hive, the better for the pool. A 3day hold is much better than a 13 week hold. I'd go for the witness changes, too.

Let's say:

Newb attraction pool: 50% Staking rewards 3day withdraw: 12% Staking rewards 10 week withdraw: 20% Witnesses: 15% DAO: 3%

We know the reward pool, designed to attract newbs, is used to pay for other things, I see nothing inherently wrong with that, folks can vote their stake how they want.

I'd make hbd interest contingent on staking, too. Just as a disincentive to holding on an exchange.
@joythewanderer(81)· 1936d
I’d make the main platform hiveswap and make each (shit)post a lottery as main burn mechanism
@bitcoinflood(80)· 1936d
Agree on a number of these things Idk about the 5 days though wouldn't that kill the system as it's a 7 day window for rewards at the moment that would have to be changed to 5 days as well.

I FULLY agree that staking Hive is pretty much pointless unless you blog here constantly or curate constantly. Only so many people are going to take up 1-3 hours a day writing a post and curating and commenting on others posts and it's a very small percentage of people. Unless there are more use cases outside of just blogging this will always be an issue. Instead of wildly changing everything up I would instead use those funds and time to start building more use cases/front ends that are not article marketing driven. Each of these front ends of course would have their own token and not reward in hive. Instead hive would be used more as the ground base of all future projects so rewards of hive could be reduced/ totally removed at some point while the front ends are the ones that reward the tokens which could be used to buy hive.

There's A LOT that could be done. I feel we waste far too much time and resources/money on constantly reconfiguring hive instead of building use cases.

Why hasn't hive built it's own market?

Why hasn't hive built a NFT marketplace?

Building groundworks like this are important and can help bring in more developers for games to use the NFT marketplace etc.

Posted Using LeoFinance ^Beta
@lordneroo(74)· 1936d
About time.

Posted Using LeoFinance ^Beta
@drakos(70)· 1936d
Stop making sense, this is 2021.
@tuck-fheman(75)· 1936d
I'd just rug pull and put it all into DOGE.
@oldtimer(76)· 1936d
The real dictators will never allow this.

Posted Using LeoFinance ^Beta