Did you listen to the latest episode of the AMA?
These are very informative telecasts that I highly recommend. There are usually some nuggets offered up each week. Oftentimes it relates to the topic of conversation but, once in a while, there is something that comes from left field.
Today was one of those instances.
LEO Is Going To Need 10 Million Hive Power
Leo is sitting on 3 million Hive Power. While this is a large number, it is a drop in the bucket based upon projections.
Bringing this topic up have nothing to do with markets or price. Instead, we are dealing with the basic tokenomics of Hive.
Hive Power = Resource Credits
This is crucial for an application. The Leo team made no secret of the desire to get 10,000 monthly active users. Based upon present numbers, this is a bit more than a 5x.
What was mentioned in the AMA is the fact that, by the end of next year, it is likely that 10 million Hive Power will be required by the Leo accounts. This is what is needed for the application to function.
Due to the design, Hive Power is the ability to access the database. In other words, one cannot write to the blockchain without it. Someone has to take $HIVE and stake it. This can be an individual or an application.
There is the capability to delegate recourse credits. Again, someone needs to have them. While some of us can do it on an individual basis, the bulk has to be done by an application.
That is the point that was brought up on the AMA.
The Hive Opportunity
As we can see, there is built in utility for $HIVE. Basically, we are looking at an access token. It is necessary to access the network.
While a 5x jump in MAUs is significant, to be honest, it is a nothing in the online world. It is laughable to give any legitimacy to an application with 10,000 (let alone 2,000). The point here is how small this really is.
Obviously, the key is to change that. We know the Web 3.0 world is sill in its infancy. However, due to the upcoming implementation of AI, we could see things changing very rapidly.
Leo has to position itself to take advantage.
What this means is having the infrastructure (ability) to provide these services to people. Certainly marketing paths which are being discussed could net some additional users. Add in AI features by the first quarter and we could see the conversation much different.
My point is that 10 million HP might be a starting point. What If Leo is able to garner 50K MAUs? Again, this is a nothing burger in the digital world. Nevertheless, it would necessitate a great deal of HP to allow engagement.
Once again, someone is going to have to provide that. Some will grow their accounts where they do not require delegation. That said, aLL newcomers are going to need some RC Delegation.
This was always the built in advantage to Hive. We will see if the application can be expanded to generate the interest that requires access.