We know the learning curve of Hive is often considered quite steep. Resource Credits (RCs) delegations represent another layer that adds to this complexity.
The interesting part is that regular users will be able to use Hive without worrying about resource credits. In fact, this is one of the main reasons why RC delegations were introduced in the first place. To allow applications to give users the RCs they need to seamlessly operate on Hive within certain limitations. Probably intensive users will have to either power up their own HIVE to have enough RCs or rent more RCs from whoever has in excess.
But this post is for someone who wants to know broadly how the car works without lifting the hood.
I'll try to keep things simple. Certainly simpler than they are at the base layer, where they are implemented.
I'd like to start with a simple formula:
HIVE Power = Resource Credits + Voting Power
If we start from here, we already see HIVE Power is more valuable than Resource Credits, because it includes Voting Power too.
So, what are the Resource Credits and Voting Power used for?
Resource Credits are similar to gas fees paid on most other blockchains. It allows your account to perform transactions on the blockchain. This is where the major difference comes in.
On blockchains like Ethereum, BSC, Polygon, Thorchain, Cosmos, etc. the fees are permanent and often paid from the governance token (i.e. ETH, BNB, MATIC, RUNE, ATOM, etc.), making your wallet lighter with every transaction.
On Hive, fees are not paid in HIVE. They are paid in Resource Credits. Which are a product of HIVE Power (HP) - you hold or are delegated HP also means that you hold a replenishable bag of RCs.
So, fees on Hive are not paid in HIVE and they are not permanent, because resource credits are like the mana in games. They restore with time passing.
Even if you deplete your entire bag of RCs, you can wait and it will fill out in time. Or you can power up more HIVE or delegate more HIVE Power to the account and you automatically get more RCs. And now, after the Hive Evolution upgrade, you can delegate only RCs to that account needing it (note: at the protocol and probably API level this is already possible, user interfaces haven't added this yet).
The voting power based on your HIVE Power gives you
The vote is stake-weighted, so the more HP you have, the higher your influence.
First of all, if you have HIVE Power you also have Resource Credits. Unless you delegate them away. So, one doesn't need both an HP delegation and an RC delegation, for example. This is either one or the other.
Now, let's see what you need...
This is pretty simple really. If you vote with an account (curate, governance, proposals) you need HIVE Power.
If you do anything else on Hive except vote, you only need Resource Credits.
This might be a good reason to reorganize accounts a bit - if you have more of them - and split operations accordingly. For example, I will likely only keep HP in one account (two, if I count this account where I'll have HP delegated for curation reasons).
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Never knew the details of the difference between resource credits and HP. I was thought resource credits and vest where the same thing as HP.
thanks for sharing the difference though...
#PIZZA
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VESTS is how the blockchain stores HP internally. Practically, it's a different token for the internal use of the blockchain, and it fluctuates in value compared to HIVE, but you don't have to worry about it. Most people just think about HP, including myself.
So, just think of VESTS as HP for the coders, and HP for the rest of the world.
RCs are one of the products (benefits?) of holding HP, together with the voting power.
https://twitter.com/1480840258828779521/status/1580293739309768704
https://twitter.com/27706436/status/1580296064904482816
https://twitter.com/1415155663131402240/status/1580441544808546304
https://twitter.com/94788101/status/1580860995274035201
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That's a very good explanation! Some graphic designer on Hive should make a small infograph on this. That'll make sharing easy 👍 !CTP !PIZZA
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Sure! Most people are visually inclined, so that'll help a lot.
@gadrian - dude, for folks like me; always trying to figure all this stuff out, I so appreciate you breaking stuff out in laymen's terms.
This is a post, I'll keep handy.
!CTP
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Awesome Jimmy! Glad it was helpful.
Thanks, @gadrian! That was a very helpful explanation. I have 3 three accounts but this is the one I vote with so I should keep the HP here. But I can delegate resource credits to the other accounts I have for posting.
!ALIVE
!CTP
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If you don't vote with them, yes, delegate RCs, once that is possible. And either power down the HP and move it to this account, or delegate it to this account. That will increase the voting power of this account. But only after you delegate RCs to those accounts, not before, because you won't have RCs otherwise.
Thank you again, @gadrian. Really appreciate the clarification. I will do that as soon as I can.
Have a great day and an Awesome week! 😀
!CTP
!ALIVE
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Your simple explanation will really benefit those whom are new to the blockchain. Nice work.
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Thanks! I've seen some people who have been around for a while and wondering if they need both an HP delegation and an RC delegation.
Great explanation! Cheers Adrian!
Thanks! Cheers Steve!
Thanks for another post full of valuable information. I am still learning and this type of post really helps.
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Thanks and you are welcome. I'm glad it helps.
This is a very informative amd timely post. The oversimplification makes it easily understandable. Not all accounts need HP, only those that vote.
Thanks! I've been known to overcomplicate things. Oversimplifying them for a change is great. And that's what non-tech people need and want.
Great and simple explanation! Putting this in my weekly curation post.
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Thanks Mitch! Appreciate it!
It's a nice reminder but I only have 1 account. So I never really had to worry about either one. After the first few months on Hive where I had RC problems, I never had any issues afterwards.
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That's the easiest. Only one thing to manage. No headaches. :)
!CTP
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Thanks, @fiberfrau.
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Thanks, Adrian.
That makes sense.
Thanks for explaining it.
!CTP
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