I'm a fool for Game Theory.
I'm not an expert on it, and I don't have a lot to back this recently found love. I haven't build a social media platform with its own tokenomics and foundations that actually work in practice - I would be drinking mojitos in Bali, sunbathing with my $10M property behind me if I had - but I think I will be able to raise some valid points here.
This is not gonna be a storytelling post, both because of the community I am publishing this to, and because I want to stick to expressing my opinions.
Hive's Reward Pool
Why are we paying the same rewards ratio to every content, no matter what they do with their rewards?
One of the ideas expressed by @deathwing here is that we could lower the reward pool allocation and use that to reward Hive Power holders.
I don't think that is the solution. Why would you reduce the rewards of long term minded content creators because we have some short vision creators who insta-sell the $hbd and insta-powerdown the Hive Power they get from post rewards?
Instead, we should have content creator Tiers, and depending on how long they want to freeze the rewards from the post, it's the amount of rewards they receive from said post.
I'm not gonna run numbers because if this idea gets adopted I'm sure someone with a better understanding of both game theory and tokenomics will trump my proposed numbers, but the Tiers could look like this:
- Lock this post rewards for 50 weeks and get 100% of your content rewards plus 20% of the declined rewards from the other tiers.
- Lock this post rewards for 40 weeks and get 100% of your content rewards.
- Lock this post rewards for 30 weeks and get 80% of your content rewards while declining the other 20%.
- Lock this post rewards for 20 weeks and get 60% of your content rewards while declining the other 40%.
- Lock this post rewards for 0 weeks and get 40% of your content rewards while declining the other 60%.
Simple. If a user signals their long term mindset while creating content on Hive, they get 100% of the rewards from the post. If a user is only creating content to get liquids because they need them, then they only receive 50% of the content rewards.
I don't think there's something wrong with selling post rewards, in the end these users are also providing value to Hive one way or another, and their rewards are theirs to do what they want. But we can definitely penalize this short term mindset.
We could even play with these very same Tiers for curation. Stake for longer than 13 weeks and get added value for your curation, or stake for shorter and decline curation rewards. We could also add penalties for having insta-power downs.
What happens with the rewards declined by short term content creators?
Well, they go to Hive Power holders, effectively giving value and a use case to staking Hive. This amount would be dynamic and would 100% depend on how the community behaves and decides to earn, thus the game theory approach here.
Would it add a layer of complexity to post rewards? Probably, but it's not like the user experience is incredibly smooth right now, so adding this layer would be easy to understand for every current Hiver. I leave to brighter minds to decide what should be the default content reward scenario for new users.
Lowering HBD's 20% savings APR
In the same post by DeathWing, he makes a case for lowering this amount from 20% to a still very competitive 12%.
These are the top3 DuckDuckGo search results I get when I search for stablecoin APR.
These are the results I get when I search for best stablecoin APR:
My first question would be, "Are we really that incapable to SEO the hell out of a few articles so that HBD comes up at the top of both search results?".
This 20% APR is a huge tool that we could leverage to onboard investors into the Hive ecosystem, and yet we are currently not doing anything about this. We have a plasma gun that we are not using in a way where everyone else's got a rifle.
I don't think we should lower this APR, I think we should market the hell out of this amazing APR and bring outside liquidity to Hive.
I have no horse in this race by the way, my almost 100k Hive is either powered up, providing liquidity in Leo's DeFi platforms, or sitting in liquids in alt wallets because I am betting for a $hive pump later this year and I want to sell so that I can buy moar after the market settles.
Value Plan can allocate some funds for someone who knows SEO like @rubencress to compose extremely good articles that rank higher. We should pay for some articles in prominent news outlets and alpha oriented crypto websites to spread the APR $hbd offers. Make a small marketing plan, funnel some funds into it and get it done.
If after a few months of marketing we are still sitting at 7.5M $hbd in savings instead of 20M, then and only then I would support lowering this 20% APR because if marketing done well doesn't bring whales to get $hive, convert it into $hbd and put it into savings, then I don't think anything will and we can call it quits.
What do you think?
Feel free to share your opinion here or directly in DeathWing's post.