If you have to be persuaded and reminded. And pressured, lied to and incentivized. And coerced, bullied and socially shamed. And guilt-tripped, threatened, punished and criminalized. If all of this is considered necessary to gain your compliance on something.
Then you can be absolutely certain that what is promoted: 🎶 ¡is not in your best interest! 🎶
Text, Thoughts & Words by @lpfaust. Minor edits, emphases, ornaments & enhances by me.
I’ve primarily been inactive as a content creator and passively engaged with the chain until I caught up with 
I don’t think this topic has a five-second soundbite solution if we are looking for an honest answer because it’s much deeper than just removing the value of rewards from a rewards pool.
The removal of the rewards pool effectively proposes a break of the DPOS governance protocol at the most fundamental level. At its core, that’s what HIVE staking represents – the ability to use the stake you accumulate (through value provided to the network, be it financial or otherwise) to affect change in the governance of the chain (witnesses, DHF proposals, author rewards, curation rewards, etc.)
What makes HIVE unique among all other POS and DPOS governance chains is how content creation and the building of a loyal base of followers on the blockchain permits a path for individuals without financial means to have a voice in the governance of the network - simply by providing value through content they create rather than through a transactional purchase of HIVE tokens. Staking the earned rewards into the chain from that value of the content created is much like a small business owner investing their profits into their business and is what gives them a voice in governance.
This idea of sweat equity allowing an individual to amass a position to influence blockchain governance is unique to HIVE and a brilliant way to ensure decentralization grows on the chain to preserve and evolve the chain as time goes on. It’s superior to other POS and DPOS chains, which permit the ability to affect governance only through value provided by the transactional purchase of a token.
I would argue that removing the ability to earn HIVE for those who provide value to the network through sweat equity (e.g., content creation) reduces the chain to a pure POS governance model Ponzi scheme masquerading as some form of a DPOS “social network” with some defi and NFTs thrown in to enhance the flavor of the Ponzi. What would the chain then become if not another flavor of LUNA? Why would staking HIVE matter beyond any interest one would earn through staking once you’ve stripped the current utility from the token? HIVE blockchain creator rewards are not simply about value and outsourcing it to a shitcoin layer 2 NFT. You will have effectively shut the door for any creator to affect any change whatsoever on the governance of the chain through their hard work and centralized all the governance power into only those with the most significant economic means.
HIVE and the legacy chain communities have always had a very flawed sense that somehow the individual with more significant economic means and transactionally purchased tokens or the dApp builder brings more value to the chain than the content creator who creates content that attracts attention and brings thousands of new views or new dApp users to the chain.
When creators' earnings show either value parity or greater value than the purchaser or dApp builder, creators are punished, silenced, demonetized, and forced back into the underclass through aggressive downvoting.
It’s a fundamental misunderstanding of where perceived value comes from. Perceived value does not come from cool new tech or the latest slick ponzi simply from being built. Without a growing community, tech alone has no value, regardless of how cool it is or how much capital has been invested. Perceived value comes from a community adopting the technology, growing the community (influencers), and adding value and utility (content creation on HIVE or its various dApps, selling products on a marketplace, etc.)
I don’t believe the DPOS governance and rewards pool are the issues. The core issue is the culture and ethos propagated in the HIVE community.
Since the legacy chain, the HIVE culture fosters, encourages, and rewards a Robber Barron culture rather than a growth culture. The culture of the legacy chain and HIVE has focused on strip-mining maximum value created on the chain. It has never been enough to take block rewards as a witness – maximum author and curation rewards were taken in addition through self-upvotes and voting cartels while downvoting others with great content surpassing some arbitrary ROI threshold. Curation trails were created so crumbs could be passed to some of the creators, and automation has optimized the process so perfectly that one doesn’t even need to engage with any of the content. It’s one awesomely efficient, fully automated, circle-jerk of strip-mining value from a chain. It’s the culture and legacy the founders of the legacy chain (Dan & Ned) left HIVE, which remains and is the poison pill that kneecaps HIVE's growth and adoption.
Listen, a growth mindset for any business or project is hard. It requires delaying gratification. It requires spending money. It requires nurturing a product, a community, and an ecosystem. It requires growing the pie rather than eating everything. It requires understanding and respecting the value everyone brings to the table. It requires a common set of values and establishing different community norms propagating across the community.
TBH, I’m not convinced that entrenched behavior and chain culture within HIVE would change or that my observation would be taken seriously.
I’ve attended two of the X Space town halls because the same question is asked constantly about retaining and growing users on the HIVE blockchain. The truth is it’s not a question that seeks any serious answers. The same six people have been speakers – the same three witnesses or six dApp developers. The same ground is covered, and the same answers are regurgitated. They talked more than they listened, and I found that very little engagement between the panel and the audience happened in those two instances. It’s simply a reflection of the HIVE culture in an audio format – the flawed belief the value only resides in the contribution of the investor and the dApp creator.
I don’t think it’s the rewards pool or the governance model that’s the core problem. It’s the culture of the community. Removing the rewards pool turns HIVE into LUNA 2.0.
TLDR: Removing the rewards pool destroys the HIVE chain; there is a fundamental misunderstanding of who brings value to HIVE; the problem is the strip-mining culture of the HIVE community rather than encouraging a growth culture.
Well, in my own words I've already written many times before at long length about this same uncomfortable and prickly subject. My most recent post and perhaps the most informative, you can read it by «clicking» here. So, today I do not plan to expand textually much more than what I have already done here. Nonetheless, I didn't want to stop doing it without first making a few brief comments on the subject:
Rewards pool:
- Inflation is what provides value to the ecosystem as a whole.
- Inflation is what goes to the DAO/DHF to fund things to better the chain.
- Inflation is what pay our witnesses to secure the transactions every user submits.
- Inflation is what pays out bloggers and "content curators" in the form of a reward pool.
- And last, Hive blog is the only Hive dApp that takes base layer inflation for services rendered.
Consequently and if what is intended is to eliminate the rewards pool of the "social network" aspect of Hive. ¡The Hive main dApp! ¿Why Power up Hive at all? ¿For what? Leading to the figure of the Hive Power as the weakest of them all within the network if what we really want is to attract new users, investors and developers that contribute to the survival and eventual growth of the platform? ¿Would Power Up Hive make any sense?
ÂżWould people care enough to invest or spend thousands of dollars on Hive just for governance?
ÂżWould staking Hive is going to set them apart from other opportunities in the cryptosphere?
Especially when they won't have the ability to distribute Hive and they won't earn any rewards at all for either creating or "curating" content and then even they would also have to wait up to three weeks to power down and recover their capital?
ÂżWill it be the already fragile, questioned and also ready to be eliminated, modified or reduced 20% APR in HBD savings the only feature in Hive and the infallible attraction that will allows us to achieve the new & next couple of million active users?
Well, finally. And if you forgot before or you feel now a bit lazy as to scrolling up to «click» on the previous links that I have left above to better understand where all this spiel comes from.
Please, at least, have the decency to «click» on at least this couple of links next: Here and also Here. Which basically will take you to the same places as the previous links, but with much more interesting and nutritious information to read and digest first.
And to close this long article right here with my last opinion. Let me just mention that if to what the witnesses, the big Hive stakeholders and the promoters of eliminating the rewards pool are really afraid of. It is the unstoppable advances in A.I. technology and that the poor commoners could use it in masse to deceive them with their improved & great content, snatching away their precious Hive and HBD before it devalues and they can't extract all their profits without having to share these with anyone else.
To prevent this from happening, it is not necessary to eliminate the rewards pool at all. What they need to do is give up and stop doing the lousy automated "content curation" they are currently doing. That one that even automatically blindly, is full of favoritisms, nepotisms, cronyisms, circlejerking and asslikisms.
The blame for current Hive's stagnation lies solely with them. For their blind, arbitrary, selfish, stupid and lousy work as stakeholders & content curators. And if they dare and they are truly brave. Let them come here now and tell me otherwise. That here next I am going to respond to all of them with the rest of my audiovisual speech!
"A.I. Dangers"
"HP Content Curation"
"Hive Stakeholders Mindset"
"Promoters of Reward Pool Removal"
"To whom it May concern"
Leave a comment. Share your experiences and feedback. ¡Be part of the conversation!