RE: A Vision for Hive
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Removing social rewards is code for I want to have a passive investment where I don't need to work to receive a portion of the inflation.
The curation game allows you to beat the inflation (if you are good at it). Currently curation allows me to receive an APR of about 15% measured in Hive (which almost doubles the theoretical inflation).
The biggest culprits that dilute the investment in hive are HBD conversions not social rewards. Removing them will simply attract a different type of user to hive. Instead of having people that look to farm post rewards we will have users that farm yield from staking. Both dilute investors by putting selling pressure on the market.
In my opinion the future of hive is in being the token that fuels second layer applications with resource credits. In that scenario investing in hive would not have the main objective of yield farming for a portion of the inflation but to use it as a utility token.
Having a reward pool is not an obstacle for that. If you want to boost short term speculation then what we need to do is fix HBD or remove it. One way to fix the pegging so that it doesn't create extra inflation is to not have it backed by a percentage of the supply but by having a pool of Hive tokens "assigned" for that purpose.
The blueprint for having a collateralized pegged asset has already been tested by the wider crypto community so why not use it.
Final note, removing the curation game from the equation will have the unintended consequence of reducing the APR for staking for everyone except the stake that is inactive. So that is a hard NO on my part unless if it can be proven that it will not affect my APR.
In order to “farm” staking inflation, you need to be staked. The same is not true for content rewards.
And if social rewards are moved to the second layer, inflation is reduced by half, and protocols that affect staked interest are implemented (such as how powering down affects vote weight), then this further reduces the selling pressures.
Resource credits are currently far too generous for this to be any driving force for HIVE purchasing, accumulation, or holding. That would need to be reworked - but then the average user would likely be affected by it, which people would then complain about and we’d be right back where we started...again.
I don’t care about short-term speculation. I care about user adoption and retention, fueled by useful development. In that department, we have been severely lacking. Four years ago, we had a few thousand active users. The numbers have not changed much at all. That’s a problem for a chain that has (barely) marketed itself as a social media chain. There’s a massive disconnect in several places that needs to be resolved if we ever want to get anywhere.
We agree on several things, but I am not sold yet on the idea of removing the distribution of tokens via social apps. I just don't see it as an obstacle to explore other avenues.
The idea of increasing adoption and retention is good (actually it's the most important one in my view) but it's still kind of fuzzy. I don't believe that we have discussed as a community what do we mean by that.
There lies the crux of the matter, we need some consensus on where we want to go first. I am not the only one who is not on board with removing the social rewards from the first layer.
Going forward that is going to be the most contentious proposal for the future of this place. If we go in that direction what is going to differentiate Hive from other blockchains? It has no smart contract capabilities, the inflation is higher than most of the major coins and there other networks that can boast about the speed of transactions (EOS and ETH 2.0 come to mind).
We have alot of things to talk about.
With 100x volatility within a four-year BTC cycle inflation doesn't mean shit.
Hive as a content creation platform hasn't taken off because the development in the last four years has heavily focused on back end issues including scalability. The UX still sucks. Only in very recent times have I seen any real improvements in that department. And now you and a few other people want to kill the content rewards at the base layer. Hive Engine tokens are worthless because they have near zero speculative value. SMTs will remain worthless for a long time when they're eventually released.