Stake: The Changing Face Of Hive

in LeoFinancelast month

It is easy to forget where we came from.

In the beginning....there was Dan and Ned.

This is how Hive (Steem) got its start back in March of 2017. Two people, and one entity, that had it all. This was the starting point from which it all rose.

Just like Bitcoin started with Satoshi being the original (and only) miner, things spread out over time. As Andreas likes to say, no matter how one accuses Bitcoin mining of being centralized, it is a lot less than it was when Satoshi was the only one doing it.

DPOS is a different system than what Bitcoin operates under. Here, we see the only thing that matters is stake. Everything else is secondary. How the stake is voted is what the outcome is.


Many feel that HIVE is not worth holding; that is an utility token that has no chance of appreciating in value. While that could be the case, there is one important feature about the HIVE token that must be expressed: its role in governance. Here we see where having HP is what tells the story.

Dan and Ned were the original "influencers". This is a term we will use to depict the inner circle (akin to Bitcoin's powerful mining circles). Through their individual stake and Steemit Inc, they were able to run the show.

Today, we see a different story. Steemit Inc along with those two are no longer a part of this system. All are gone. There is a new cast in place who act as the "influencers".

How many are there? That is up to individual interpretations. From my understanding, there would roughly 75 people who were involved in the establishment of the fork into Hive. These were the major stakeholders as well as many of the top witnesses and developers (often the same people).

To be a bit conservative, let us call it 50 people who actually have influence over Hive through their stake and the role they play in programming things on the blockchain. While this is still a relatively small group, it is 25 times the number of people who were in that position in the beginning.

As stated in a recent post, the main challenge I see with Hive is the fact there is mainly one wealth center: the HIVE token. This is where the money is. Little outside of that has progressed to the point where there are now others able to tap into vast resources.

This makes it tough for the "influencers" to grow. The simple way for this to spread out is for more people to have higher stakes. Presently, the payouts are how the token distribution changes. While it is working over the long-term, it is very slow.

We saw that outsiders are not going to buy the HIVE token, for the most part. While we can hope a few large investors come in, the truth is that even if there is a run, it will be traders who are doing the heavy buying. Certainly that helps volume yet those types are gone the next time the price pulls back for a prolonged period of time.

Thus, the only conclusion is that the buyers of HIVE need to come, mostly, from the inside. Here we see the dilemma. Those who have the resources do not see the value in buying it while most are not able to increase their stake significantly.


Fortunately, we already have the solution: multiple wealth centers. The fact that there are many different ways to be rewarded is what offers the potential. This is why the term "the blockchain of opportunity". Anyone can come to Hive and create layer 2 projects. The hope is that, over time, some of these take off.

Leofinance appears to be one that is making some headway. The token price is approaching parity of HIVE. This will provide an interesting situation whereby a fair number of people will have more in the Hive Equivalent than they do in HP itself. Once again, it is important to note the governance aspect of things.

Now, imagine for a second, this same situation except there are 5 wealth centers in addition to HIVE. Then, we suddenly see hundreds of people with the resources to improve their stake, thus expanding the pool of "influencers".

Obviously, not every cent make from different projects needs to end up in as HP. However, for those who are active and building, having a larger say over governance is prudent. After all, do you want your future earning potential or the success of your project left to others and have no voice in the matter? I do not think many like that idea.

The key to decentralization is not so much that it is a destination as the fact that things are moving in a particular direction. As other projects find their groove and generate value for those who are involved, more wealth centers pop up. It is then where we will see buying pressure since many will start to feed a portion of their profits towards improving their stake.

One of the beauties of DPOS is that it is a simple concept. Owned stake drives the governance show. For now, the Witness Pool and Proposal System are totally dependent upon the stake that is used to vote. This goes right back to HP.

Those who truly want to make a difference can do so by improving the power of their accounts. This means adding more stake.

Hopefully, over the next year, we will see wealth centers popping up on Hive that give people the resources to improve their positions.

This is who we will see Hive move to the next level of "spreading out" the power distribution.

If you found this article informative, please give an upvote and rehive.

gif by @doze


Posted Using LeoFinance Beta


I agree with most of what you say. HIVE is certainly extraordinary and getting more decentralized by the day. I gave you a 100% upvote even though I disagree with this:

We saw that outsiders are not going to buy the HIVE token, for the most part.

Didn't we all come from the "outside" at one point in time? Why would that stop? What evidence do you have to that effect? Are we so special that the chosen ones are already here and nobody else on planet Earth is like us?

it's easy to forget.

You got that right.

Bitcointalk: the very corrupt beginnings of steem

It began 2016 and for anyone that did their research, it's clear why this was never and never will be decentralised. Your own words again:

...major stakeholders as well as many of the top witnesses and developers (often the same people).

Don't forget the Hive fund for proposals too.
The "give me a third dip of the honey pot" fund.

That's major redflags that have never been corrected. With no proper second layer either there's just no way this can go up.

LeoFinance is (imo) better off detaching from Hive to secure growth. It's just silly to be a closed system within a closed system. Hive-engine is much too limited as a second layer and the recent post from its creator shows how he's desperate to try to gain fools money now that Hive is down.

HF24 doesn't seem like it's going to change much. That's the thing with repeating the same thing over and over. SMT is (was) the only possible "fix."

I'm going to respond to this in my next post. 😏

Ok great that will be interesting because most don't seem to be aware of those early days. Or they don't like to think (or discuss) that far back.

On a dollar basis it’s cheaper to purchase and build on some of the smaller projects. I think if Hive ever got to .10 cents we might see some interest. Overall I still believe LEO may be the horse to bet on.

Posted Using LeoFinance

True when looking at it from a return point of view. Of course, if we can take into account the governance model, I think we see the value, even if not dollar for dollar, in having a greater stake.

That is why part of the ideal solution is for a token like LEO to generate wealth for the users, thus providing the resources to increase one's influence some.

Posted Using LeoFinance Beta

5 wealth centers added to hive would be magical and leo is already showing multiple sign of being a token that can internally generate value for hive. I feel ownership and usage of hive is one superior aspect of hive and the distribution itself is ideal I feel we only need adoption from the right places and certainly we are good to go.
Steem or what is now hive has come a long way and the entity that we recognise them with are now gone. Further decentralisation again at its peak.

Thanks for always inspiring with your beautiful articles.

Thanks always for your continued patronage and worthy comments @josediccus. I hope you are finding the move in LEO to your liking and benefit greatly from all that is taking place.

Hive has a few things going for it which can be leveraged much greater in the future. Having people who are committed to what is going on having resources will generate a much stronger and resilient ecosystem.

Posted Using LeoFinance Beta

( The token price is approaching parity of HIVE.) I helped it do that this morning, The cheapies are going very fast!

Posted Using LeoFinance

Another reason why people might want to buy hive is to give themselves a chance at passive income, people can buy hive and delegate to prospective projects like leofinance to earn leo tokens, or other communities who offer delegation APR's like @hodlcommunity,....Now, imagine for a second, this same situation except there are 5 wealth centers in addition to HIVE. People will sure buy hive...

(Steem) got its start back in March of 2017

it's 2016.... but I won't tell, shhhhh

Posted Using LeoFinance

Bang, I did it again... I just rehived your post!
Week 22 of my contest just can now check the winners of the previous week!

Your current Rank (30) in the battle Arena of Holybread has granted you an Upvote of 21%

It will be very interesting to see based on your theory that more centers of wealth can give another concept to the Hive ecosystem.

Nowadays it is much easier for you to increase your participation and also your impact power through layer 2 tokens. LEO is being a great example of this and his success in bringing more people into his community, can also inspire other tribes to follow this success, but it takes time and also a solid project.

We know that on the Hive Engine there are several tokens from tribes and many of them are not so "useful" for their value to grow. I am not referring to prices because we know what the lack of liquidity and good volume in the market is like today, but I hope that in the not-so-distant future we may have more people deceived, increasingly influencing other people for the Hive platform, so I believe that we have some success both for HIVE and for other tokens as a result.

Posted Using LeoFinance Beta

Having this in mind, I think it would be very possible that some other projects can be worth more than Hive, so wealth could out of Hive (other tokens in the chain) and people could be concentrated in their preferred communities.

What is happening to Leo is pretty interesting and hopefully will be the guide that other developers will follow to make their tokens grow as well and going this way, making Hive great too

 last month 

Splinterlands, LEO, Cryptobrewmaster, Dcity; there's your first four. Just wondering which will be the fifth. 3speak maybe?

Giga Tera Peta Exa.... ohhh those sweet days, when my first gen.1 ASIC arrived. Those were the days.
But I always knew world will run into Peta-Exa territories. :)

Posted Using LeoFinance Beta

morning,have a nice day

Interesting to read your views on why HIVE may never rise in price because of the recycling of the tokens among its members. This is why a cross chain initiative is very important so other who do not see strength in the governance of Hive can still tap into its resourcefulness through the bridge.

Posted Using LeoFinance