Power at the Stake
An interesting conversation came up after my Holozing article yesterday, concerning stake delegation to earn other tokens. As I mentioned in a comment or two, while there is no risk to the stake itself, there is a cost to using stake in this way, as it takes away the opportunity to earn curation on the same stake. This means there is a tradeoff, with the "risk" being whether the value of the earned token (ZING), is going to be worth more than the cost of obtaining it (foregone curation earnings). And, "value" is going to be a relative term here, because it might not be the monetary value alone, but in the case of a utility token, what is possible to do with it later.
What can be done with it later.
For almost seven years, I have been espousing the value of building stake. And as I generally practice what I preach, it has cost me dearly. That means, it has been expensive, because rather than powering down and selling at the various highs, I have largely powered up and held.
One of the reasons I have done this is because I believe that Hive is worth more than the book value the market gives it, as it also gives the potential for ownership of the network that enables it and, the potential for earnings directly from it. And, these earnings are more than just the curation, for as we have seen in the past, Hive stake has also been used as a type of oracle for airdrops for new projects and tokens. It has been used many times over the years, with limited success, depending on the project involved. If a project doesn't have any interest behind it, the tokens it drops on stake will just be dumped. However, if there is interest, it can be valuable for those who get it.
And, this is where the delegation comes in, because what it is essentially doing is making it like a liquidity pool of sorts, where based on the staked amount, a certain amount of the distribution will be received in a token. This is not done for free, it is trading that stake vote value for the token, which can be used by the project to earn and encourage users. Splinterlands did and does this with their stake, and when they first started up, it was vital to incentivize the conversation. Without Hive (Steem at the time), Splinterlands would have struggled, because building a community is hard.
Being able to offer value in return for help developing the discussion and buzz around a project, is a nice way to reward participation. Although, a project has to be somewhat discerning with this method and who they reward, because essentially there will be people who have no intention of actually supporting the project long-term, still trying to earn by posting about it.
And, stake is also considered a form of influence on Hive, and it isn't just because it can financially incentivize people directly. What you will find, is that a lot of the community type people who have been here a while like myself, have built their stake over that time. They aren't selling out and, they are starting or are parts of other discussions on the platform. For me, I am a content creator who covers many topics that interest me, but what ties them altogether is an underlying and deep appreciation for Hive and the community upon it. It is impossible to have a belief in this platform, and not build stake, because stake and the success of the platform go hand in hand.
In my opinion.
And I am hoping that in the future, there will be more quality projects that use delegation and similar to build their usecase, while rewarding participants who add value to building the community. This is a good usage of stake, because it supports expanding usecase potential for audience capture, as well as incentivizing targeted content that helps build the community required to demand the usecase.
Content creation is vital for a content platform like Hive, but what content does matter. This isn't Instagram, Twitter, Facebook or TikTok that relies on various advertising models for income. Hive relies on a community. If the content created doesn't add value to the community, if it doesn't help people be more engaged on Hive, it probably shouldn't get much support.
This doesn't mean just talking about Hive of course, (like some people do with "Hive" in nearly every title for votes), it can come through general content totally unrelated too. But, if there is no discussion around it, if there is very little interaction, if it isn't practically helping people participate here better, build relationships, make friends, and motivate them to participate, stake and collaborate - what is it doing for the platform and community?
Quality content.
I am a big proponent of quality on Hive. But, it isn't just about the language and pictures used, referencing and layout. If there is no engagement, what is the point? If no one is reading it, no one is commenting and no one cares, does quality matter?
For me, I attempt to create something that people each day are willing to read, willing to comment on and hopefully, will walk away with something changed in them in some way. I want them to opt-in to the conversation, and make it part of their focus for the day. Something to think about, something to build upon, something to connect them to the community. So much of our lives are lived "alone" in terms of content consumption, and I want to change that, at least in the content I create.
Do you see how stake matters?
I reward a lot of the comments I get (as well as reply as often as I can), because whilst some might be doing it for the vote, there are a lot of others who genuinely enjoy being part of the experience. Being part of a community should require adding value of some kind, but it should also come with rewards, incentives to participate. Hive allows for this through staked voting, but often that stake is looking at a single piece of content only, regardless of the value it actually brings to the platform.
Stake can also support community building activities, accounts that support community conversation, and the projects that help develop solid usecases for the community, which will in turn, raise the value of the community as a whole.
Having usable stake is great, but using it well is vital.
If the only reason people are posting is for vote value, and what they post is not adding value to the community, they probably shouldn't be getting voted. What adds value isn't just topic-based though, it is also impact-based. What is the impact of an article and perhaps more importantly, what is the impact of an account over time?
It is very hard to enumerate this, but watch for long enough, and it is pretty easy to tell what does and what doesn't add value - at the edges at least.
There is so much potential in Hive that goes beyond price, but a lot of people seem to not consider it at all, let alone support it. Even when they have stake to spend.
Just like with money, it matters what you buy with stake.
Taraz
[ Gen1: Hive ]
I think part of what gives delegating stake a bad name for many of these projects is the fact that most people just dump the other token as soon as they get it. I try to at least hold a certain amount of the token in question even if I sell a bit of it. I like to build that base so it can sustain itself over time. I did that with SPS, the GLX token, etc. I might not be the biggest bag holder, but I at least hold some before I start selling. Like you, I have found my experience even more fulfilling on Hive now that I upvote comments. It might not be a ton of money, but it really makes a difference for both parties involved.
Nowhere near as much as those who get it for free. In the case of Holozing and ZING, everyone started from zero. There was no distribution for the team at all. This means that if they want stake in their own game, they are going to have to earn it, or buy it. It limits dumping.
For sure! I have been doing it for ages and what I find is, that while there are some that are only there for the vote, many end up commenting something with value. Incentive is a power motivator for better behavior - if aligned.
That is a good point. Projects that have that initial airdrop for the early people with nothing in return are often doomed to fail. We've seen many come and go within the Hive ecosystem over the years haven't we?
Yeah we have. It is kind of like a rug pull.
Words full of wisdom. Thank you for sharing, I still have a lot to learn in hive and I hope what I read will make me wiser as I continue my journey
The concept of stake is underated. Most folks do not realize that by using stake we can solve a number of economic social and technological issues.
If you imagine a world where everyone is "staked" and has control of their own value and its usage, things change dramatically.
Exactly...
True words. Stake is like plot armor.
Do you think you will compensate the curation rewards and %2.94 APR of HP with the return from the delegation?
Well, the APR isn't affected by delegation. so, if 100 is delegated, a year later the delegation will be 103. When undelegating, 103 gets undelegated. Not sure about the curation returns on it - time will tell. But, if I want to be involved with the game a year from now, I think it will be cheaper than buying later.
I think the lines are blurred in a way, I think it's probably a bit of both in terms of engagement with the community versus getting votes, but some people might assign more weight to one of them. At current Hive prices, I think it's enough to weed out people who are just here solely to spam in order to get votes because it's likely not worth the time.
Price plays a big part. As it increases, more "crap" surfaces, but it also means that quality gets rewarded to a higher degree also. I remember the days where I was giving dollar votes on comments.... many of the same people are still commenting for 10 cents :)
I learned alot from it Thank you
I'm in that same boat as you powering up way too much and staking and not taking profits when I should lol
But I'm also in the same boat as you when it comes to vision with your hive power and how we can use that to support other projects and growth here on the Hive blockchain.
That to me is yet another very powerful aspect to having hive power. Yes, there is a risk of less curation rewards but you're also getting in super early and supporting a project that you believe in and the people you believe in thus I call that a win win. If it pops off you'll most likely have a very good stack and investment.
It really is like having millions of dollars and investing into people and companies like you see on shark tank would be a comparison lol
And this is another superpower of community. If we had a very strong and staked community, we could empower lots of projects, which in turn empower us, and we get to be The first in every time.
Precisely!
With some token or coin stake, good result means profit can be made. But I have seen that stakes can earn a bit more if the volume is high. In this case Hive also plays other important roles which can be earned while owning it.
The future is in tokens that offer multiple usecases. Too many shitcoins out there that do nothing except drive hype for market price.
I like the project you are supporting by @acidyo
I made a small delegation as well and planning to increase it the next month!
Hopefully it translates into decent development. One thing I can trust is, they will try.
Actually after I read your last article I raised my stake from 2K to 15K, thinking to give it a try for a couple of weeks.
Big change! I think it is worth the experiment at least and once the game is out, it might be a good starter :)
Anyone that thinks of hive in this way deserves respect. I have come to learn one’s commitment to hive , their quality delivery of posts and content is summarized by that thought.
Anyone that values it less and hopes for a get rich quick scheme, will vouch for effortless, low quality short form content like we see with web2.
I fear it could be the death of hive.
I don't think Hive is going to die too soon from low quality content or even get rich quick people, but there will be a lot of disappointed people who blame others for their own failures.
I think you're doing a great job with content creation... You have the ability to write up something about anything really 💯
Let's hope Holozing goes places, I hope it's captivating enough to keep me entertained enough not to quit the game.
Hopefully some of it makes sense too! :D
It is pretty interesting to be part of the development, before much has been developed :)
He really started this under the radar though, he mentioned something back a few months and I was waiting for it, only saw it a few days back on his main profile 😂
But keen on seeing how it all unravels!
For me it is not about the hive dollar value. Actually when it goes down, I collect more hive. i love to write and express myself when I have time. I also support other worthy causes like the rights and protection of family and child. I see the community support and social aspects of hive. I know from personal experience i have friends here who have watched out for me and groups like @familyprotection who are committed to helping the innocent. Finally I think of the educational value in so many posts. yeah, Hive is definitely multi=valued and full of potential.
There are so many different aspects to it, that with a "few more" people, it really does have the potential to be a robust digital city.
For example, I have never powered down my Hive even though I didn't know the value of building stake but I'm glad that I got to realize thst building stake increases our chances of earning and also our reputation on the Hive network
Reputation is in how others see us. act like a dick, that becomes the reputation :)
Well now, who could that conversation have been with....?
;)
One of the nice things about Hive is the way different projects get funding and the value they add to the whole ecosystem. As some of the projects succeed, others will like to try similar strategies and they will get rewarded by the community if they do a good job. Token distribution used in the 3Speak network was analyzed to inspire Holozing, yes they decided to use a different approach but the previous experience helped them decide their own. Every new project adds up to the ecosystem. This is the beauty of launching a new project in a community-owned blockchain compared to other chains.
Yes! Even the failed projects have added valuable lessons, that have led to the next iterations.
Hi, thanks for the read. I discovered your recent articles via my interest in HoloZing, which I discovered via Splinterlands/Risingstar/Golem Overlord , or you could say a general interest in Web3 games. Splinterlands was my real introduction to Hive a couple of years ago, but I have to say, Hive has really gone over my head to a greater extent. The problem for me is that it is so dang hard piece together all the little bits of info. Holozing has introduced me to more aspects of Hive than anything previously, for example what the heck is delegation , how do you do it, what does it mean, all things that are probably obvious to you but just meaningless words to me, they have no association with anything. For example, you mention, curation, I've no clue what that is. I'm going to dig about and find out more, I have a slight idea, but what are the in's and out's of it ?, very opaque. I even joined a curation trail once, no clue what I was doing. So, all that to say, thanks for the read and I'm going to rummage through your articles for nuggets of Hive info, but if you can point me to any good resources/writers, I'd be very grateful.
I really like the Hive staking and reward distribution. It oftentimes requires effort and distribution. You make a good post, and people appreciate it. Some curators like in SPL, even look at the Hive account of posters before upvoting, to make sure they are not just extractors. The way Holozing does their airdrop is also very interesting. It gives the power to the people by rewarding those committed to the game, which will eventually lead those that contributed to playing the game to not waste their tokens. Hive has its own ecosystem with different apps and services that can work well together.
This is precisely my content-related aspiration. I'm continually learning from you all, @galenkp included, with the aim of fostering discussions and boosting engagement. Hopefully, I'll reach that level someday! 😁
I think there is more to Hive than price. I am not struggling to pay the bills right now so I fully plan on increasing my stake. Also, I think the reason why people were so fixated on price is because that tends to be what moved them over to Hive. I keep people saying that Hive is the best place to earn compared to other platforms (true), but it also means they are staying around for the money. When they find something else to replace Hive, they will probably leave.
Same as those who have been delegating to DLUX as I see it as supporting the project whilst also earning a return whatever that might be. The loss of curation rewards is worth the sacrifice when you are thinking long term.
I seriously like the powering up. I want to possess enough power to be able to reward creators substantially. Hive is most preferred to me above other tokens
Can't believe I fell a week behind on my following feed! I need to be better at making time every day to engage with the creators I like to read. Now with inleo and actifit taking up more of my attention, plus a better cadence of daily music video content + fantasy footie updates, it is becoming more challenging to make the time to consume instead of create. I certainly have a newfound respect for your process, since you do such a good job of creating daily while also engaging in the comments on your articles. You must have a good process and strong discipline in place!
Hello tarazkp!
It's nice to let you know that your article won 🥉 place.
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