In the Hive ecosystem, the decentralized blockchain launched as a Steem fork in 2020, the Decentralized Hive Fund (DHF) is presented as an innovative mechanism for fostering community development. This fund, financed with 10% of the annual HIVE token issuance, allows users to propose and vote on projects that supposedly boost the network. However, beneath its facade of on-chain democracy, the DHF has become an instrument that serves a handful of "whales" and privileged operators, allowing them to plunder community resources to the detriment of the entire ecosystem.
The main criticism lies in the complete lack of transparency and accountability. Many approved proposals lack details on how the funds are spent, with nonexistent or superficial reporting. For example, @ empoderat's post on Hive.blog denounces that "there is little to no accounting" for the proposals, and that the operators rarely interact or follow up with the community. This raises suspicions of money laundering, as @ por500bolos points out: "Projects with tons of money that end up being nothing more than that." Instead of investing in sustainable infrastructure, the funds are allocated to maintaining personal lifestyles, not applications that benefit Hive.
Another problem is the lack of structure in the proposals. There are no clear business plans with start and end dates, realistic cost estimates, or self-sufficiency goals. @ shmoogleosukami argues that "everything should have an end date and be self-sufficient," criticizing projects funded over years that don't generate their own revenue. Blatant examples include the "Value Plan," a "money incinerator" that costs almost 1 million HBV a year with no visible return, promoting Hive in communities that "instigate" the funds. Or the ridiculous marketing with a rally car, described by @ crrdlx as "the dumbest marketing idea since New Coke," with no analytics or measurable impact.
Oligarchic control exacerbates the plunder. Large holders with millions of HP (Hive Power) dominate the votes, pushing dubious proposals like Splinterlands—described as "pay or we'll leave"—without scrutiny. @ isnochys proposes minimum stake and membership requirements to demonstrate commitment, but whales, with their disproportionate power, ignore these demands. This creates selling pressure on HBD, without generating purchases, which sinks the price of HIVE faster than inflation and scares away serious investors.
In short, the DHF, far from decentralizing progress, has morphed into a loot for the few. Without weekly monitoring, enforcement, or vetoes of perpetual proposals, it loots the community fund, eroding Hive's credibility. The community is clamoring for reforms: greater participation, mandatory audits, and limits on whales. Otherwise, this "decentralized fund" will remain a centralized farce, dooming Hive to irrelevance.
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