Your stake is your voice and your voice is worth something

in LeoFinance2 months ago

I have made lots of stupid trade decisions over the last week due to a combination of tiredness, busyness and choosing to buy/sell when I didn't have the time to actually look at what I was doing. The problem was that I was otherwise engaged while big moves were happening and I had slivers of time to act - and I acted poorly from a decision perspective. It has likely cost me several thousand directly and a fair bit more in opportunity lost.

That is the way the crypto crumbles.

While I missed PHUD - Power Hive Up Day (HPUD sounds silly to my brain), I did make a conversion of 350 HBD which matured today (a little bit more in a few hours too), so I added 1500 HP to my stake, to push me to over 135,000 - A long way past the 10,000 I thought would be my max once upon a time.

And I think that this is where I would like to argue against the original marketing of Steem of

Your voice is worth something

Yes, it is - if used well - but that is not my issue. The issue is the direction that it points a new user, although this might be "user error" in the misunderstanding.

There has been more recent talk of Hive being a second layer blockchain, which means applications get built upon the Hive infrastructure, which underpins everything above. This infrastructure is governed through consensus, which is driven by stake - meaning the more stake one has the more weight in the governance a voice has. As I have said for a very long time,

Stake is your voice

What this then means is that yes, your voice is worth something, because in the form of stake it has a say in the governance mechanisms. A vital point for the security of the blockchain through decentralization. I think that the previous marketing pushed "earnings" as the currency itself that can be traded for goods and services, but the real value is earning stake - which is one's voice in regards to the Hive blockchain. What a person posts about and what is said has social value, but what one stakes has value to the infrastructure, which houses the community itself and this houses all social value.

What I am trying to get at is that earning Hive as if it is a salary is not actually the value of earning Hive, the value of earning Hive is the ability to grow one's voice through building stake - Your voice is worth something in the form of stake as it is your voice that provides the security of decentralization as well as the direction of future governance decisions of the blockchain and is a vital component in the future of everything to come.

The social platforms of Hive where people are authoring posts are already second layer solutions, it is just that they are currently attached to the first layer of the infrastructure through the pool. If for example hive.blog created an SMT and detached itself from the core HIVE inflation pool, it would just be another application.

Now, no application that can access the pool directly will remove itself from access willingly, because pretty much all know that the HIVE pool is valuable. While some people think it is valuable because it can buy them lunch, stakeholders understand the value because it underpins everything to come, all of those second layer applications. Because no application (most) applications will completely detach themselves, all become somewhat reliant on the HIVE pool for their earnings and in some way, this becomes a crutch for development, as rather than building an application that attracts both users and investors, they can "subsidize" the user experience through being able to offer access to the HIVE pool as well.

And this is the thing that all developers will have to start coming to terms with eventually. While there is still the possibility to do this, the reliance on the HIVE pool will eventually end one way or another. This means that applications will have to learn to fly by themselves with the benefit of being on the Hive blockchain not the rewards pool, but the access to the many communities that are bound together through the Hive blockchain infrastructure and service fabric.

This fabric can be woven strung through the decentralized nature of the staked user base - which means the staked user base has to be decentralized. For four years, this process of earning voice has been ongoing and those who understand the value of stake have been doing what they can to earn more, some in healthier ways than others. But, stake is one's voice and one's voice has value when it comes to the infrastructure layer of the Hive blockchain. It will also likely have voice in the second layer services also, but that is value-added potential - the core value proposition is owning real estate on the network - real estate that is unlimited, but expanding at a predictable rate.

At some point, getting stake will be like buying real estate in London. New York or Tokyo, it is possible, but one will have to be prepared for the cost of location, location, location. The second layer solutions can also be invested into of course at likely a lower cost, but it will also have a narrow view of the network. Owning stake on the first layer means having exposure to 360° views of the entire network, even though an individual doesn't know all that is going on in the cities above.

What I mean by this is that having stake (voice) on the first layer not only supports the second layer above, it benefits from all second layer value additions and is protected by the diversification of the second layer solutions above it. One does astronomically well and a huge amount of value can be added - one fails completely and the downside is very limited. First layer stake is far more valuable than the value of the Hive it currently or perhaps ever has - as it is what will always be able to reap value from the layers above as it is this stake that makes those layers possible.

I don't know if you see stake in this way, but when it comes to the discussion about first and second layers for the future, it is good to remember that there has to be "owners" of the network in the same way that for the internet to function, the cables have to be laid and the satellites launched. Your ability to read this article now isn't because you have paid for the internet access, it is because the infrastructure of the internet allows you to use it in this way.

For me "stake is my voice" which can also apply to the way I use it in regards to the direction of the HIVE inflation pool, but more importantly, it is my voice in the governance of the future of the blockchain and this is likely to become more important the further we go. While not everyone will agree or believe there is value in this, that is a decision that each of us make, but at least make that decision from an informed position, rather than on assumptions of what you think is valuable.

Under the current blockchain rules it is possible to participate and earn a voice in the future, but potentially at some point, that tap will be closed and the only way in, is to invest directly. A lot of people won't like the idea of investing their own capital - but a lot will because it means that people will likely take their investment more seriously and look to protect it, not squander it away. Investors often jump on the bandwagon of other investors, because they have an understanding that if everyone is investing in, no one wants to lose their investment, so each will mitigate risks and behave to generate value - which tends to create stability and increase returns.

What you say and how you use the voice you speak and the voice you stake is up to you - but every action has consequences.

Taraz
[ Gen1: Hive ]

Posted Using LeoFinance

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I can't help thinking about that old saying that one should "lead by example". I don't have a large stake yet. However, I only recently realized the importance of investing directly rather than relying on earnings from proving my brain. Consequently, I realize that Hive is a means for me to simultaneously be the greedy capitalist and also the philanthropist. By building and accumulating, I am enabled to give so much more. It is a message I should share more. Using my voice would include my influence on how Hive is running and how Hive attracts new users. I think what clicked in my mind is that I co-own this place.

If I own a house, I must maintain it and put it to work. The same goes for a business. As a Hive owner, I have a share of responsibility in its success. Before my epiphany, this was tragedy of the commons.

Posted Using LeoFinance

However, I only recently realized the importance of investing directly rather than relying on earnings from proving my brain.

Perhaps this is a part of the "proof of brain" :D

Consequently, I realize that Hive is a means for me to simultaneously be the greedy capitalist and also the philanthropist.

It is an interesting way to put it, but I agree. Over the last years, I have been able to give thousands of dollars of value to people and support some very directly in ways that would have at least seemed impossible to me IRL. Balancing personal and community growth is necessary to be able to continue being able to give in the future - it might not be a perfect system, but there is more opportunity to be the philanthropist on Hive than most other places.

Before my epiphany, this was tragedy of the commons.

A lot of people will never get out of this common mindset, yet they want an exceptional life. If we on average want to live in a better world, we have to on average make it so.

Thanks for adding your perspective on this, it is valuable.

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Sorry to hear about your bad decisions, I think it's been a rough week for you with all what happened to smallsteps. Indeed the stake is a voice. The content is as well. I value when I see a combination of the two :great content + stake

Have a great week!

Yeah - this week looks to be a repeat of the last :D

I agree, that content and stake both have voices - which is why I try to create relevant content that creates some discussion also, as well as personal content for my own journey. The value of it all is being able to participate in the community and economy at all levels, rather than using proxies and middlemen. The problem is, many people don't want the "risk" of responsibility.

Missed opportunities suck but they aren't as bad as losses from bad decisions. You can always assume you missed some kind of opportunity and that's not helpful, just unnecessary stress. Also if you don't have time to research just assume that investment as a likely loss/gamble, so you don't stake what you can't lose :)
Then again probably don't take crypto advice from me 😂

Also if you don't have time to research just assume that investment as a likely loss/gamble, so you don't stake what you can't lose :)

This is all of my investments. I take the psychological position that it already a complete loss - that way, it is all upside ;D

Indeed :D
I can't believe how lucky I've been last couple of weeks with NFT-s, I've no idea what else is going on really xD Just trying to finish whatever I already started.

Enjoy it and I like that artists are actually selling their work now - not just giving it away for upvotes :)

Well it's not technically giving away :D Since we can use it for other stuff too

Yes I know - and I really hope more start connecting IRL work to the blockchain too -Would be nice to see some galleries getting on board.

Responsibility is hard. Ignorance and throwing the blame is easier

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If anyone does not understand, just take a look at last post from @themarkymark about how upvotebank is abusing from all voting power from the users who have signed for its service. Voting power is like shares in a regular company, it gives you the power to vote and get compensated for that vote when you curate.

I am interested in what kind of value those 1000 accounts hold combined and where the access was given. I know that a lot of dead and abusive accounts were getting bundled and sold in the early days so that the 15 SP delegation from Steemit could be abused.

Couldn't agree with you more.

It is nice to have people say it sometimes :)

I don't know a lot about crypto or about the stock market and shares. I do know there are different types of shares, voting and non-voting. The voting shares get to help guide the company, (hive in this case I think), while the non-voting shares get to earn a little bit for their investments. I am slowly trying to build the Voting share part so that in the future, I may have a voice even if it is only a whisper. I can add/pool my small voice with others and possibly make a difference.

I am slowly trying to build the Voting share part so that in the future, I may have a voice even if it is only a whisper. I can add/pool my small voice with others and possibly make a difference.

If only the small accounts (yours is getting quite big) knew the power they held. Nothing stops pooling and collaboration at the blockchain level.

I am hoping it continues to grow. I am hoping to be close to 10,000 mark by the one year anniversary of Hive, March 2021. Just have to wait and see.
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For me "stake is my voice" which can also apply to the way I use it in regards to the direction of the HIVE inflation pool, but more importantly, it is my voice in the governance of the future of the blockchain and this is likely to become more important the further we go. While not everyone will agree or believe there is value in this, that is a decision that each of us make, but at least make that decision from an informed position, rather than on assumptions of what you think is valuable.

The argument being floated to eliminate inflation of the base token for creators and what not is a troublesome one to me. It would only serve to cement a permanent ruling class on the blockchain, especially when many members of this class got the stake they have by gaming the content reward system. I hope people don't fall for it. If SMTs (assuming they ever come to hive) create a value proposition that is greater than the base token, let people pursue them by choice. If you want to stop people posting for hive tokens, make an SMT that people actually want when the time comes. The day that creators and curators get alienated from the governance of the blockchain, that would be a sad day.

It doesn't matter what I think of this, it is where it is probably headed - eventually. I think part of your argument about the abuse if the reward pool points to this as keeping it open to content will see an endless process of abuse, just at lower levels, which will create an endless process of abuse fighting at the general blockchain level, rather than pushing it to the communities who have incentive to keep their place clean. Weirdly, people don't see this as their place when it is everyone's responsibility - but they do want the communities they own and love to be free of abuse.

Out of my league, what I know about shares and things are dangerous.
But I do know about human value which is a horse of a totally different color and we invest in it every day.
On the Philantrophy side we can confirm your efforts.

But as far as stake goes, to me it's also a horse of a different color lol.

Investing into people is a risk, but the return is worth it :)

Always a risk my friend, but it all depends on the strike rate. 7 out of 10 is always good, as that is the number of graduates from our free trauma training for child workers project work out to. At times it's even higher.

Do you trade/invest only in hive, or other cryptos as well?

Also, congrats for 135k. Do you have a goal to reach 1 million hp one day. Or just the next step, like 200k hp.
I mean, do you have a long term goal, or just focus on the next achievable goal?

I trade a few things occasionally.

My goals are all long term - other than things like posting and voting daily. The goal is to be part of a community that changes the world of economics and life.

Wow great goals. I am happy that I found such a good community.😎

Congratulations @tarazkp! You have completed the following achievement on the Hive blockchain and have been rewarded with new badge(s) :

You have been a buzzy bee and published a post every day of the week

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To support your work, I also upvoted your post!

Do not miss the last post from @hivebuzz:

Hive Power Up Day - Let's grow together!
The HiveBuzz Shop - New Items and Designs

Just powered up 350 Hive because of reading this.

Thank you for this man. I just wasn't sure if I was going to cash out some rewards, so I just powered them all up! :D

Great words to sum up. Even this comment and that one - has consequences :)