Hello everyone. As you know, we are conducting two studies on tribal tokens in Hive-Engine via the @centtoken account. We are purchasing and staking new tribal tokens with the income we receive from the sale of the TRIBE token. We are adding the income from curation transactions to the Cent/Tribe liquidity pool as a liquidity provider reward. We are accepting the delegation of some tribal tokens. We are combining the income from curation transactions with a portion of the income from the TRADE Token Study. We are distributing delegation rewards to users who delegate tribal tokens to the @centtoken account.
In this article, I will talk about the factors we use when choosing new tokens for the studies I mentioned. I will also touch on how we determine the reward distribution APR rates in delegation transactions. I think that our studies will become more understandable with this article. It will also be a guide for users who are hesitant to participate in the studies.
Inflation in the reward pool of tribal tokens:
The APR vs. APY rates of the return offered in the reward pool of tokens are quite important. As the numerical return of the token increases, it also means that it loses its value. For example; When we first started Cent's reward pool, the reward pool was producing 6 tokens per minute. This could mean a very good return for content creators and curators. However, it is an indication that inflation will be equally high. Over time, we are reducing the number of tokens produced by the reward pool. Currently, Cent's reward pool produces 4 new tokens per minute.
Liquidity and volume status of tribal tokens in Hive-Engine:
Whether we accept it or not, tribal tokens have a certain value. Each has its own community. It is claimed to solve a specific problem. It may provide convenience in a specific matter. Or it may contribute to the achievement of a specific purpose. All of these are important things. However, when we want to obtain or dispose of these tokens, it is very important whether we can do this easily. Therefore, we attach great importance to this issue when choosing tokens. Is there enough trading volume in the token market? Is there depth for large purchase/sale transactions? Does the token have a liquidity pool? Are the token's reward pool APR and liquidity pool APR balanced? We are looking for answers to many questions.
The community's general opinion about the token:
In addition to the factors we mentioned above, we also attach great importance to the community's view of the token to be preferred. Of course, we should expect a satisfactory return from the tokens invested. However, as long as there is community support and regular new participation, we can expect the token to survive.
- Delegation Work We determine the APR rates we offer in the tokens we make depending on the above factors. For example; The APR offered by the Pob token is quite high. This shows that inflation is also quite high. However, the maximum supply of the Pob token is limited to 21,000,000 tokens. And it has a supply reduction feature similar to Bitcoin. For example; The APR offered by the Leo token is quite low. However, it is the leading tribal token in terms of liquidity and transaction volume. We can easily close this gap by using the TRADE token study.
As a result, when choosing tokens for the studies we conduct and presenting APR in the Delegation Study, we take into consideration many factors that I have or have not mentioned above. To summarize briefly, the most considered factors are as follows; The community's interest in the token, the liquidity of the token, whether the token has a liquidity pool, the trading volume and depth in the token market, predictions about the future of the token, etc. As I mentioned before, I will make a reaction call for tribal token managers regarding participation in the work we are conducting. In the following process, we will start to offer conveniences such as market making, mutual liquidity pool creation, etc. regarding the tokens we are working on. We currently have a collaboration with Inleo. We can present this as a prototype. For this, we will increase the work carried out within the framework of Leo and Cent. Stay tuned to see you in new content.
