I don't recall reading the current whitepaper in the past years but yesterday I did, it was the 2020 version which apparently is still the most recent one. I like the fact that the whitepaper is set in stone and that we don't have forks happening often.
To me it does show that HIVE is a very stable system and network in general.
What the whitepaper talks about
You can have an overview of all the concepts used on HIVE such as:
- Resource Credits (RC)
- Delegations
- DPOS
- DHF
- Reward pools and allocation
- Keys
- And a few more topics
All important concept are explained using language that can be understood by non initiate.
With only 10 pages, I thought it was very well written and does carry a lot of weight but is still accessible to all.
Link to the Hive white paper: https://hive.io/whitepaper.pdf
By reading and trying to understand all concepts, you have already taken a great step in leanrning about the Hive ecosystem, you might not know yet what to do with the knowledge but if you decide to stick around, I am sure time will tell.
My unanswered question: HP Interests
I am in the process of planning my first Hive app/tool to be deployed as an MVP before the end of the year and I needed information about the tokenomics and hive inflation. That is what got me into reading the whitepaper in full to get a start of the answer.
My questions is:
Are Hive Power interests (15% of pool allocation) paid only on effective HP or HP owned ?
Contrary to what I thought it was hard to get a definitive answer and thought my research, I couldn't find a sourced answer I was satisfied with, if anyone has the answer with a link to source, I would appreciate it in the comments.
My initial thought was that interests would be paid on owned stake as an incentive to buying and holding HP and not losing on those if you where delegating to others else you would need to get something in return or accept the 3.14% as a lost to you for the service.
So the question remains, who gets the interests in this case you or the person you delegated to?
The difference with APR on curation
For curation it does make sense that you only get the income from effective HP as you want to give an incentive to degetor to upvote content and have more impact on the platform, whether for a temporary period because the user is new or for a more long term approach if it is a project that you wish to support.
So when you are doing your calculation for curation rewards don't use your full HP stake but only effective HP which is: total - delegated HP = effective HP
I don't have stats from the beginning but in the previous two years, I believe I got an average range of 7% to 9% on my effective HP which is nice because it is paid directly in the token HIVE or more precisely in Hive Power (HP), this could make a big difference in term of USD revenue if the price increase a lot during a potential bull run.
If you are making 50 HIVE per month in curation, you probably still make that much down the line (with a constant stake) but the $ value would be more.
50 HIVE X $0.22 in 2024 = $11 per month
50 HIVE X $1.85 in say 2025 (speculation) = $92.50 per month for the same amount of work.
50 HIVE X $6 in 2028(still speculation) = $300 per month
Earning income directly in the currency/token can be a good tool to hedge for future price increase because you can leverage your work now for better reward later down the road, providing you don't sell along the road.
Being part of the Hive ecosystem and contributing with content, upvotes is a way to "mint" new token into existence as you compete for a portion of the inflation which is decreasing over time.
Increase your reputation and audience is like investing into new hardware to mine better down the road, this is part of your capital investment as well, you have the opportunity to build your own productive tool like a factory, your is producing content, engagement with others in the community.
BONUS: today is HPUD day for August 1st 2024
Another month went by and it is time to Powerup some HIVE, I a first Powerup this morning just after midnight but I am not sure it registered properly since I didn't get any notification message from hivebuzz about the badge you can win.
I will have to wait until tomorrow when the new badge is released to know which one I got.
If you don't know HPUD is an initiative on chain where users are encourage to Powerup their account of the first of each month, staking more HP give you more power on the platform and on reward allocation.
Since we are in a stacked weighted environment, the more HP you have, the more value your vote can give to other users. You also have a bigger say in proposals and elected witnesses.
Keep in mind that only the power of users that are active in a single day will count toward the distribution by the reward pool so upvoting is important even more when less people are doing it as you have more chances to get curation rewards.
