Sound Money .:. WorkerBee PH-Pool Week 292
As I'm not a native English speaker, I didn't know about the term "sound money" until a few years ago, when the Ethereum blockchain made changes and implemented token burns... Then, the UltraSound.Money website was created, which tracked the number of burned tokens and the current state of the ETH chain... At certain moments, when the chain was busy, we had deflation on ETH, which excited many token investors... Unfortunately, that didn't last too long... Currently, the ETH token inflation is around 0.6% to 0.9% per year, similar to BTC's inflation rate, which is approximately 0.82% to 0.83%...
Created on Canva.com, using my photo as a background
Recently, there were a couple of posts on HIVE that raised some questions about the direction and HIVE price... Is the price important or not? What counts and what doesn't? Who is selling, and who could potentially be interested in buying, etc.
Sound money is a stable, reliable currency that maintains its purchasing power over time through scarcity, durability, and resistance to arbitrary inflation or manipulation.
Definition by blockstream.com
Compared to ETH or BTC, we have a completely different situation on HIVE... BTC has a limited total supply; ETH doesn't have a supply cap, but it has token burns, while we on HIVE don't burn tokens... Yes, we can manually do it, but there is no "programmatic" token burn... Unlike most cryptocurrencies, HIVE doesn't have transaction fees, which are usually (on other chains) used to pay node runners or used for burning tokens...
On HIVE, almost all chain "profits" are paid from inflation. Witness nodes, author and curation rewards, DHF. Having no transaction fees is our best "weapon", but also our kryptonite... On some blockchains, with many transactions, fees are a nice token burner and "inflation limiter"!
As I said, HIVE is a very much unique to most other chains... As we have 2 native tokens on our chain (HIVE and HBD), we have conversions from one to another too... Those conversions can "work" for the HIVE price, but they can also be a negative side of it... When the price of HIVE goes up, people tend to take profits by converting HIVE into HBD, lowering the HIVE supply, as during conversion HIVE tokens are burned...
On the other hand, when people convert HBD into HIVE while the price is (relatively) low, they INFLATE additional HIVE by creating new HIVE and burning HBD tokens. Currently, we have that situation, which makes our chain pretty repellent, as our current "total" HIVE inflation is almost 20%... That is probably one of the highest in the crypto world, especially for a chain as old as HIVE...
Image from post by @dalz
I know the reason why I came into the cryptocurrency world... Seeing how fiat currencies are inflated by printed money, losing value year by year, saving in EUR or USD made no sense... You save money in the bank, get a small % (if) of interest, but inflation eats all your profits! Bitcoin was a no-brainer for me... Ethereum with a burning mechanism was fresh air in crypto, and it looks like all serious cryptos want to follow that by changing their tokenomics, striving toward sound money...
One good example of that is Solana, which has (currently) relatively high inflation compared to BTC and ETH, around 4.18%, which gradually decreases over time. The main developers on the chain tried implementing inflation reduction a few years ago, but that "proposal" didn't go through... If I'm not wrong, they are trying to push it again, as they want to compete for the title of the main "altcoin"!
Despite all that, all cryptocurrencies have been struggling with price recently... But it's not the same when the wind turns around, especially for HIVE... As we had much higher inflation over the last 3 years, we minted much more HIVE tokens than "planned"... If we want to see HIVE prices we had before, someone has to buy those "excessive" tokens... If there is more demand than supply, the price goes up... If there is more supply and less demand, the price goes down... It's as simple as that...
Yes, we do have methods of "locking" tokens, such as staking (powering up), savings, or pairing HIVE in different liquidity pools, but all other cryptos have similar things...
I'm curious to hear your opinion regarding the HIVE token price. I know that some of you don't care about the price, but it is out there, and we can't ignore it... Nowadays, everything is viewed through the lens of money, and if you are losing monetary value, you are not interesting to investors or developers...
Times are changing, crypto is changing, blockchains are changing... Do we need a change? What would you change on HIVE?
Let's see the WorkerBee Pool numbers for this week...
This week, we have mined 147 BEE tokens in total, 14 tokens fewer than a week ago!
This week we didn't get new delegators! As usual, we got additional delegations from old members! Thanks for your continuous support, guys and girls! I really appreciate it!
This pool doesn't charge fees, and you can earn up to 20% more by delegating to it!
What about the bonus tokens?
Maybe I have that view about burning tokens, as we are doing something similar on our @liotes project by burning LEN tokens with earnings from our protocol... It is still manual burning, which we are doing on a weekly basis by using profits dedicated to this specific cause... Currently, we are burning between 60-70% of weekly token inflation... If the price of the token is lower, we burn more; if it's higher, we burn less, depending on the available money we have to buy back tokens and burn them... For example, LEN tokens that will I giveaway as a bonus today come mainly from the LEN:LENM reward pool, where I'm one of the biggest liquidity providers... (The reward pool is filled with tokens that are bought back from the market + additional cryptocurrencies bought with profits)
There will be 100 LEN tokens distributed to the delegators of the pool as a bonus reward today!
100 LEN tokens will be distributed as a bonus... The APR (without the bonus) was 13.363%, and when we added the bonus, it went up to 16.095%!
I have calculated the ROI approximately with medium prices for all tokens when creating this post... So, those numbers are valid if you bought WB and sold BEE tokens at the middle HiveEngine price... Currently, the BUY side of the WORKERBEE tokens is very thin, and it's hard to calculate the middle price.
Do you want to sponsor the PH-Pool with your tokens, receive a short SPONSORED segment in this post, and raise awareness about your front-end or dApp? Please let me know in the comment section or contact me through Discord or Twitter, and we will find the best solution for both parties...
If you want to join the WorkerBee PH-Pool, the only thing that you have to do is to STAKE tokens to YOUR account and DELEGATE your staked WORKERBEE tokens to THIS account (@ph1102)! Every week, you will get your portion of mined BEE tokens and BONUS rewards!
.:. DO NOT STAKE TOKENS TO MY ACCOUNT!!! Just DELEGATE! .:.
All payments will be made after publishing this post...
If you have any questions, please leave them in the comment section!
You can find more about this pool in the initial post here https://ecency.com/hive-119826/@ph1102/workerbee-p-h-ool-let-s-help-each-other.
Thank you for your time.
--ph--
None of this is financial advice!!!
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