Direct from the desk of Dane Williams.
How whale accounts need to evolve on Hive for the platform to succeed
I really think that the evolution of whale accounts is a hugely underrated part of the success of Hive itself.
We want to see those with stake being the most innovative types of people.
Risk takers that have had success because they were willing to think outside the box and put their money where their mouth is.
What we don’t want to see is the conservatively rich getting richer, with no incentive to innovate or fund innovation.
Unfortunately however, it seems that the creeping inequality in Hive shows that we’re not getting the evolution of whale accounts that I’d like to see occuring.
The direction of Hive Backed Dollars highlights conservatism
The underwhelmingly conservative direction the chain is taking Hive Backed Dollars (HBD) is a prime example of things not working how they should.
When you look at what the success of Terra’s UST stablecoin has done for their native LUNA token, it’s a no brainer that HBD should be expanding in order to compete.
We are positioned perfectly to take advantage of gaps in the algorithmic stablecoin market.
Afterall, we are the only truly decentralised algorithmic stablecoin with no founder stakes or pre-mines in our native token to corrupt where things are going.
(The SEC says hi, Mr Kwon.)
But we are not taking advantage of our position, instead happy to remain conservatively small and insignificant on a global scale.
Within the LeoFinance community, it is fairly well accepted that HBD needs liquidity to level up.
If you can’t even buy $10K worth of the stuff, and right now this is the case, then there is really no point.
Changing how things work in order to implement a Hive AMM model seems like a solid, no brainer solution that should at least be getting more discussion than it is..
But those at the top with influential levels of stake have vested interests in not seeing their current work become redundant so innovation is stifled.
Heck, we can’t get close to the votes required to secure DHF funding for even a second-layer solution to the lack of HBD liquidity.
Instead, we should be encouraging innovation
This is easier said than done and if nobody wants to put their money where their mouth is, then obviously nothing is going to change.
What I expected to see was, when each individual Hive community saw massive profits, that this money would eventually flow back into Hive Power.
They’ve taken risks, succeeded and will hopefully now look to gain a larger influence over the chain with their increased stake.
The thing is however that the only community to so far see this sort of money flow in, is Splinterlands.
When Splinterlands cards went from being worthless to thousands of dollars, I did expect some members of that community to take profit and use that money to gain more influence on the chain itself via increased HP.
But the numbers in the article I linked to at the top show that for some reason, this isn't happening.
Will this be different if say LeoFinance banged via LEO, CUB or POLYCUB repricing 20x?
Or will it just be the same where they stay in their own little bubble or cash out elsewhere?
Final thoughts on the evolution of whale accounts on Hive
I’d love to see those who see success via Hive’s successful communities filter that money back into HIVE itself.
These are the innovators and passionate people I want using their stake to influence the direction of our blockchain.
Do you have any thoughts on the issue?
Leave a comment and get involved.
Best of probabilities to you.