I just read another awesome blog post by Dalz, who was kind enough to provide us with a very detailed overview of how HIVE gets created and destroyed, a historical view of both HIVE and HBD supply since 2016 and some analysis on the inflation of HIVE with yearly and monthly charts.
One chart that particularly caught my attention was this one:
source: blog post by Dalz
It shows Hive inflation per year projected to 2035.
Check out the numbers for the last three years. Inflation has been around 6% per year with a clear exception in 2024 where many holders of HBD are converting into HIVE due to their extended black Friday sale prices, driving inflation closer to 9%. Now look at the bars for future years. As a matter of fact, focus on the bars on the far right. Inflation is around 1.5%
This is because Hive's inflation rate has been programmed to decrease at the rate of 0.01% per 250,000 blocks until it reaches 0.95%.
Since HIVE produces new blocks about every 3 seconds, it means
it will take (250,000 * 3) seconds= 750,000 seconds= (750,000/(60 * 60 * 24))= 8.68 days for inflation to go down by 0.01%.
What do I plan to do with an increasingly scarce asset? accumulate more of course.
Hive's distribution phase
Again, thanks to Dalz, we have this chart that explains how Hive is currently created:
source: blog post by Dalz
🔵 Blue - staking rewards
💛 Yellow - Witness rewards
◻️ Gray - curation rewards
🔴 Red - Author rewards
A large part of new HIVE gets created as rewards for written blog posts and videos made by creators. Another large part of new HIVE comes from curation rewards when other users upvote such blog posts, videos and comments.
With an ever decreasing rewards pool an a growing number of users, a smaller amount of new HIVE will be available to content creators and curators.
It might not seem like there's a growing number of users right now, but that's largely because we're still in a bear market.
I see ongoing development from teams like INLEO who've just announced Leo Shorts (short videos), VSC with smart contracts, Keychain ALWAYS improving the dApp, Distrion, and dozens of new decentralized applications (dApps) on Hive that to me are indicative of a thriving ecosystem.
I believe it's super important to get your hands on as much HIVE and Hive Power as you can now because come the bull run more projects and users are going to want to join the Hive network, and demand for HIVE is likely to increase, driving up its value, price and utility.
Hive's stable value-for-value economy
Once Hive has distributed it's token far and wide, has reached a healthy price, has sufficient decentralized methods of trading with DEXs such as LEODEX, I believe we are likely to see a shift where more folks are coming up with ways of providing value to others in the hopes of receiving $HIVE in return.
I see top notch content creators using subscription models similar to Patreon for their shows.
I see thriving gig front ends with all sorts of job listings and talented workers offering their skills in exchange for HIVE.
I see people putting together computer rigs to host decentralized storage they can profit from.
I see more people operating nodes that will allow us to seamlessly go from HIVE to Lightning and back.
You might not share my optimism, but I really do think HIVE has a promising future. As HIVE continues to evolve and adapt to market conditions, it stands out as a reliable and innovative blockchain platform and could very easily see significant price appreciation and widespread adoption in the blockchain space.
Disclaimer:
As expressed in other finance-related posts, I am not any kind of financial advice professional, I have a very average IQ and low EQ and I'm pretty regular looking, tell bad jokes and come from an average income family. So don't go sell your house and ape into anything I say I will. Also, I'm drinking beer at the time of writing this, so be particularly weary of anything I write.
If you'd like to a silly and optimistic post on what HIVE might look like in 2030 when it's reached adoption by 500,000,000 users, please check out this post. You might find it entertaining.
@alex-rourke/hive-the-protocol-used-by-the-entire-world
