RE: Proof-of-Burn: Black-Hole >> White-Hole Tech
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So imagine we can destroy $100 worth of Hive by sending it to @null, but in doing so we can create $100 or more worth of value on the other side.
With the right incentives people would be willing to burn their hive permanently. I reckon I'll do it for those reasons - if it creates a supply glut and increases price; and if it gives me an equivalent or more of a reason to burn
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That's the idea, and with a liquidity connection to Hive itself it would be possible to turn those burned rewards back into even more Hive than you started with.
How difficult is it though...from a developer perspective, on a scale of very easy to very difficult?
So far it seems pretty easy.
All of the cryptographic security is derived from Hive itself.
I don't have to worry about any encryption stuff or account creation,
and I don't have to worry about the database being too big (RC costs).
Biggest concern is database integrity.
Especially when there is only one node running.
I was following everything until this statement... if you burned $100 worth of Hive (say it's 200 Hive) and you got $100 worth of whitehole tokens... you wouldn't be able to get more Hive would you? The supply of Hive went down by 200 tokens so you'd think the price would go up? Your whitehole tokens might be only able to purchase 198 Hive tokens for $100? (Assuming no fees, etc).
You would be able to get more Hive.
There are a couple of ways to do this.
The first is yield farming over time.
Magitek yield will be much higher than Hive (obviously).
The second way to make more money than you put in is with NFTs.
If you create an NFT that someone else wants you can easily sell it for more than the cost to create.
Both of these money making strats carry risk and aren't guaranteed, but it is quite possible to generate significantly more value.
Ahhhh... thanks for this... I guess it's tricky to get my head around whatever comes out of the whitehole - but I guess it could really probably be anything. Can't wait to see your alpha and beta releases to get a feel for how this all works.
While you're not making money as a dev now, I'm sure this will open up a whole stack of new applications... so really you're just front-loading at the moment.
Yeah the goal has always been to create a database for all the dapps I want to build here.
Magitek is the foundation.