When it comes being on hive, there are lot of financial decisions to make. There are times when a person's reason for joining hive, determines how their payout will be handled. Did you join hive to build a career on hive Blockchain or to support other endeavors outside hive? It is never as simple as, long term or short term planning. There are times when it is just due to lack of information about what power up means.
Power up on hive translate to a lot of things but the most simple way to describe it, is that, it allows you to have more influence on hive Blockchain. It depends on a user to find out what the influence means and how it be used to their advantage. Power up is like a fuel that drives everyone account on hive.io, the more you power up, the higher your hive power (HP); the more voting power you have, the more mana you have to perform more activities on hive.io.
I remember how frustrating it was when I first joined, I had limited hive power and I wasn't really getting high payout. Despite that, I still had to rely on the payout I had, to build up my hive power gradually. It was a struggle, thankfully I got some delegations from the person that invited me to hive. You have no idea how relieved I felt when I can finally perform all kind of activities on hive.io, without worrying about running out of "mana".
Power up is the foundation of building a strong hold on hive. In most cases, people's payout tends to determine how often they power up and also, external factors also influence it. So what is my own strategy? payout comes in different forms but the most popular one is, the 50/50 payout. Which means 50 percentage of our payout will be added to our HP and the remaining will be paid in liquid hive, which is transferable at any point.
For person like me, I also use my hive payout to support myself when needed and there are times when I power down to get things sorted. Just like the beginning of this year when I was trying to establish my fabric store, I powered down a significant amount. Does this mean I don't have a long term objectives when it comes to hive? it is the opposite. It simply means I also have a life outside hive.io and I'm planning on keeping both afloat.
Because the moment, I can't manage my affairs outside hive.io, then it becomes impossible for me to be on hive.io. So for me, it is both power up to grow on hive.io and cash out my payout to grow outside hive.io by maintaining the 50/50 payout technique.
This write-up was inspired by Indiaunited contest titled "Power up or cash out" in indiaunited community.
Cover image - Image generated using chatgpt
