It's our duty to learn something about the Decentralized Hive Fund and its proposal system

Hive is a public blockchain that is autonomous and decentralized. Hivers collectively decide on the direction it takes.

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At the core of it, we have the DHF or the Decentralized Hive Fund. As I pour more money into Hive, I feel that it is my duty to learn something about the Decentralized Hive Fund and its proposal system.

I really didn't know much about it, so I am trying to learn it now.

So, as the info below depicts, the The Decentralized Hive Fund (DHF) is an on chain decentralized autonomous system that allows users to submit proposals for funding and vote on which proposals should be funded.

But, first, where is the fund coming from?

We know Hive is inflationary, i.e. Hive is printed regularly, so this is where it is coming from. I gathered that 10% of inflation rewards go to the Hive Fund (see post).

This is how the DHF gets its funds.

Then comes the proposal. These can be proposals for projects which we think are good for the Hive ecosystem. I have come across proposals about educating people about Hive, marketing, cold wallet development, etc. You can check out the project proposal here on the Ledger cold wallet integration with Hive here: https://peakd.com/hive-139531/@engrave/reimbursement-proposal-for-ledger-hardware-wallets-support

To access the rest of the current proposals, check out this link: https://peakd.com/me/proposals

You can muck around and see what projects are available for your support. You should do your part by reading them and voting.

Then there is a FAQ hyperlink, which will bring you to a set of questions and answers about the mechanism of applying, and funding.

My quick takeaway after reading the FAQ is that any one of us can write a proposal and ask for daily funding to support our effort on the project. There is a cost of 10 Hive, and 1 Hive per day beyond the first 60 days. After creating the project, Hivers like you and me can go and vote for the projects.

As alluded to, this voting and lending support is actually an important part of individual Hivers getting involved in Hive's progression and promotion. Each of us can support the project with our vote, which is linked to our HP somewhat (something which I don't quite understand yet).

Then comes the question of who gets funded.

As to What determines who gets paid?
There is a daily fund. The fund pays the top voted proposal the amount the proposal requested and then continues to pay proposals until it runs out of funding for that day. The final proposal will often only receive partial funding.

Based on the above taken from the FAQ, I get it that funding indeed depends on votes, and votes depends on whether people know who we are and whether we can be trusted.

As it stands, currently there is a daily budget of 193,204.615 HBD to be used. So that seems a lot.

But not everyone gets supported, certainly.

What the info suggest is that if they can get enough support subsequently, they will still get supported. From another perspective, it is important for us to check in often and vote (or withdraw our votes to give others more chances).

My conclusion:

We are all stakeholders in this blockchain. Besides the usual curation and posting, if you have a special talent or ideas, you are encouraged to put in a proposal. If you have a useful idea, and are willing to work it through, I am sure the community will support it. Something it is just a post away.

But first...

It's our duty to learn something about the Decentralized Hive Fund and its proposal system.

I have done my part. Have you?

P/S: This is not financial advice, and please do your own due diligence before investing.

If you read this far... and if you are a like-minded Hiver who is on the path to learning more about Hive and crypto investing, and if you like to be tagged when I write such posts, I welcome you to leave a comment below and let me know. We can form an alliance to support each other's growth.

You might be interested in this post, @jacoalberts, @young-kedar, @svanbo and @hankanon!

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