Community post
How does Hive fight against inflation?
I did some research on hive and figure out Hive has infinite amount of tokens supply. Does this mean Hive can "Print" tokens forever?
If the answer is yes, then how does Hive fight against inflation?
Replies (7)
I recommend you to read the hive whitepaper for more details.
A little excerpt:
https://developers.hive.io/resources/whitepaper.html
Hive on!
The inflation of the currency is the basis of the rewards pool. It also pays for hosting and some development work.
People who buy HIVE POWER engage in a variety of upvoting dances to get their share of the inflation. HP investors consider their piece of the rewards pool in their investment decisions.
The designers of the platform were hoping that the platform would bring in enough new users to keep the price of HIVE from bottoming out.
The inflation is at a fixed rate. So, it would take an infinite amount of time for the currency to expand to infinity. Sergio quoted the whitepaper which sought a 9.5% inflation rate.
Instead of fighting inflation, people on the platform write posts and comments hoping to get their share of the inflation.
Unfortunately, if the site fails to retain users, then the price of the currency will decrease at a rate faster than the users can harvest the rewards pool.
BTW, you can send HIVE and HBD to @null. That destroys some HIVE.
I tried multiple times to download the whitepaper from hive.blog, but I failed. It always shows a error message "Access denied". I have no idea whom should I ask to address this problem. I hope the devs will fix the link as soon as they get noticed.
👌Thank you very much for this workable link. I will read the whitepaper for better understanding as per your suggestion.
Why on earth does anyone burn money? I find no reason and I'm no joker to do that.
Btw great information. I got some understanding now.
🙁 can't upvote you, cause no voting power right now.
Holy smokers. You ain't got bug squat!
This is your account on HiveBlocks.com:
https://hiveblocks.com/@airdroplrt
It said you had o HP.
I don't know why they are creating accounts without delegating HP to the account.
I will be kind and delegate 20HP for a few weeks. Now you can vote!
Don't upvote this reply.
Voting works as follows: Each vote decreases your voting power by 2%. Voting power regenerates at 2% a day. That means you get 10 votes a day.
Now, go to the upvote calculator and type in 20. The value of a 100% upvote with 20 HP is $0.0003 . Thirty four upvotes will add up to a penny. If you are lucky, You will get half of the penny back as a curation reward.
Your account is in the plankton. Your vote value is so small that intelligent people ignore you.
Here is the kicker: HIVE only gives a payout on posts where the upvote value is greater than $0.02 . Don't upvote comments where you are likely to be the only voter. That vote will be wiped away as HIVE DUST.
Don't upvote this reply. The vote will be wiped away as HIVE dust.
What I did when I was in the plankton is: I would look at all the people who upvoted me. I would go to their account and upvote their most recent post.
Anyway, have fun with the delegation. I will yank it from your account in a few weeks because I like money and I prefer having money in my pocket than having it in your pocket.
Good luck. Have fun on HIVE.
As for your question: Apparently, burning HIVE puts accounts on a promotion list. It is also a good way to send an award to the entire community.
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