HIVE SBI continues to operate as somewhat of an under-the-radar operation that is still sometimes misunderstood. Take for example, the most popular recent article about the program being titled: Is SBI Still Taboo Or Is It A Valuable Tool On Hive?
In this article I argue that not only is HIVE SBI a valuable tool, it promotes good behavior and long-term thinking in the growing of new accounts on HIVE.
The inverse Ponzi Scheme
Even in a world full of scams, we have to remember that we continue to build on best practices within cutting edge technologies (including digital 'communities') - there are 'REAL' things happening. One project that continues to grow along side HIVE is HIVE SBI.
HIVE SBI FAQ can be referenced, and more up dated docs are being built out on the official documentation. The program is built on automation, so it can grind away in the background pretty easily.
Recently while speaking with @josephsavage, it was revealed to me that the program has 0.86 HIVE backing per unit currently. This is amazing, especially when considering that the program takes in just 0.5 HIVE per unit (minimum 1 HIVE per 2 units generated by sponsor:sponsee transaction).
And here is why the program is a technical reverse ponzi, a dilution scheme that funnels some value from early investors towards new units. Since new units can buy in at any time (send any amount of HIVE to @steembasicincome with nominee in memo) for 0.5 HIVE each, they can 'dilute' early investors. But its okay, people who invest gets lots of benefits - we can at least be sure this is not a ponzi, when leeched value flows in the opposite direction.
Is HIVE SBI a 'good deal'?
This is an important question. Personally for me, the answer is yes, and I want to try to articulate some convincing reasons why I include HIVE SBI in the 'HIVE Backbone' part of my INCOME Synergy Fund portfolio. I identified the project many years ago as well structured automation that locks a growing amount of HP into a protocol that supports a widening community using HIVE, even giving them the tools to support others.
In terms of ROI, the program reports between a 10% and 20% apr in terms of HIVE value. This number depends on whether you value the unit at 0.5 or 1 HIVE each.
The sponsorship mechanism is designed to support this two level analysis. When you sent HIVE to @steembasicincome sponsoring any account, you are going to get 10%+ apr on that for the rest of the life of your account. The other account will also receive the same amount of units as you. @improv's Punday Contest continues to sustain itself and become more sustainable by way of HIVE SBI prizes that it gives away every week. It strengthens the Punday Program and strengthens the participants' accounts.
Now it seems that contests and giveaways, while still existing, are not quite as popular as they used to be. This is fine, HIVE SBI works on an automation level, and can be conceptualized inside an investment framework as well.
What really is a HIVE SBI unit?
HIVE SBI units generate 'balance', which gets delivered as votes on your posts. The balance can accumulate to any level, so it doesn't actually matter how much you post, balance will be delivered.
In this way, you can see that an SBI unit is like a bond that pays interest. Interest automatically accumulates, and is paid as votes on posts. There is some cap on the upside (Maximum deliverable upvote value), but other than that limitation, this functionality dynamically encourages users to come back after a time away due to accrued interest pending to be paid.
It is here that HIVE SBI plays a crucial role in the 'long-term onboarding' of accounts, sometimes also called stickiness. Its a 'nudge' to come back to HIVE, and keep at it (even though its complicated).
Further development is happening now, such as with the HIVEsbi.com site and its ever-growing list of new API endpoints. HIVE SBI has specifically not tokenized their units yet, although they have a future plan to do so under their "SBI DAO" roadmap. From what we know so far, HIVE SBI units will be able to be converted to an SBI token which would be a governance token, and that this would be a one-way process.
Other benefits
A long-term vote bond has other benefits, and it aligns people with a long-term incentive time period, which is better for actually building things.
Vote support is a tricky topic, and I have posted about it before. One of the most challenging parts of the whole set up is that new users often get Zero or very close to Zero votes on their posts. Just overcoming this obstacle is often enough motivation to continue, to keep writing, keep updating.
I definitely think HP is important, but as you grow, and as users account gets more than say, 500 HP, I would recommend considering adding HIVE SBI to your account for additional growth. Our INCOME Synergy Fund has 49,200 HP and 18245 units (9122.5 HIVE's worth).
Organizing effective swaps between users and projects of different type, size and scope is one way that projects and people can lock-in to a long-term growth plan with HIVE SBI. You can arrange them amongst your friends, or message me in discord if you want me to see if I can't help arrange something. SBI Discord has Dolphin, Orca and Whale chatrooms as well.
Helping the noobies
HIVE SBI is also a great tool to help noobies. You can sponsor someone for a few units, and the program will distribute a sustainable stream of votes to them for the life of the blockchain, and will reward you as well. If the noobie disappears, their unclaimed balance will stay on the books, but will never be delivered, just continuing to strengthen the program for those who remain.
I would really like to get some more projects into accumulating HIVE SBI on their project accounts through strategic swaps. I am even willing to further incentivize the arrangements of such swaps buy adding bonus units into the mix. If you or a project you work with would like to arrange HIVE SBI unit swaps, let's discuss in the comments below!