Some days ago Aggroed published a post about his idea of cutting inflation of Hive to the 8th part of what is now.
The informal proposal created a debate where many ideas about how to fix Hive economics where exposed, most of the comments seemed to disagree with the idea of cutting that inflation for many reasons.
One can think about this as a great idea to lower the supply of Hive and create an artificial scarcity that would increase the value of our beloved crypto but what would be the result of it?.
Cutting the inflation would mean that every content creator would perceive less profit from their work and also could create good conditions for some whales to dump some of their Hive at good prices.
MORE DEMAND NOT LESS SUPPLY
Actually the inflation rate of Hive may look high, as we don't have enough demand to cover all the supply that we generate, the token is devaluated periodically. Now Hive isn't an attractive crypto to hodl.
One of the reasons why HIVE is so cheap is because we keep printing massive amounts of inflation. I think we should drastically reduce inflation. I think we should bring it to 1% per year and hold it there. .33% for witnesses, .33% for DAO, and .33% for post rewards.
So instead of increase the distribution of the wealth in chain the idea is to cut profits from the small fishes to mantain or even increase the benefits of the big stakeholders. Taskmaster's reply was very clear about this particular issue and I fully agree with his pow.
How about, instead of monkeying around with inflation, we focus upon generating, oh say 50% growth over the next 12 months? If that happens, that 8% inflation rate would see miniscule.
Seems reasonable to want a better price for Hive but this target shouldn't be a excuse to implement convenient solutions for the wealthy users instead of working in onboarding more users and a better token distribution.
INFLATION, HBD AND DAO
The underlying problem is imo much more complex than a higher or lower inflation rate, HBD is a permanent headache as other users pointed out
Essentially HBD holders can manipulate the price of HBD in order to buy it cheap, convert to Hive, sell it (which pressures the price dowwn)...rinse and repeat.
The DAO is perceived as a duty free for witnesses and contributes to the printing of more Hive. So we have various problems that can be discussed to obtain a better price for the token.
Can we think once more in this blockchains future and less in our particular wallets?.
How we answer this question will determine the success of Hive. I believe that if Leofinance has proven a better development is precisely for a better token distribution and a nicer behaviour of the whales of Leo.
We should promote stacking Hive and Leo and not just look for fast profits dumping these coins.
HOW DO WE GET MORE USERS?
Aggroed knows well how to promote a product, why he hasn't talked about strategies that he knows that work well with Splinterlands, some marketing would be needed.
Imo one of the targets should be the gaming community and I think that here Aggroed's experience may be very useful.