RE: POB Part 2: What is Proof-Of-Burn? & X-Deck

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POB Part 2: What is Proof-Of-Burn? & X-Deck

in pob •  3 months ago 

You bring up a lot of good points and once again show me another perspective that I should certainly be mindful of.

It seems to me part of the problem with Hive is the majority of users choose not to invest for a plethora of reasons.

I do not think this is a problem at all. Communities do not need investors; they need to generate value from within. Sure, it's nice when somebody rich joins your community and dumps a bunch of value into it. We call this investing. But truly it is not necessary. Nobody invests in USD or America's GDP; the value is created from within the community and the trust/utility that the currency indeed does have value.

In my mind the focus needs to be more on providing jobs for those who are looking to work. Most people do not invest; most people live paycheck to paycheck, and that's fine (for now). We need to get people here working and building value however they can. What they decide to do with the coins they earn afterward building value has been (and always will be) their decision. We do not have to rely on these people to HODL the coins they earn to continue building value here, as strange as that may sound. There are two sides to every transaction, and that value will circulate within our community.

And while I am quickly approaching Dolphin status, I'm under no illusion that it's any real amount compared to many here like yourself and higher.

Ah, you see, I do believe you are under an illusion on the opposite side of the spectrum. As a Dolphin, you are one of the elite. Welcome to the big-boy table, brother! Seriously, if Hive does what it's supposed to do, you'll never need more than 5k coins. This will become much more obvious when our scaling is put to the test and blocks start filling up to the maximum size.

Make no mistake, we are going to need to raise RC costs. When we do, will you still have enough credits to transact on this blockchain? The answer is yes, you are part of the elite, even if it doesn't feel like it now because the network is so small and fledgling.

I almost feel like you answer some of your own questions in the question itself.

I'm assuming that means that there are only 2326 accounts with more staked power than myself.

Correct. Think about this in terms of 10M-100M users trying to use the platform.

most aren't investing anything other than time into this project, which is why demand is such that we aren't where we should be as a chain.

An how are they investing their time? By bringing value to the network and getting paid for their work. Where does that value go? It stays in the network. Again, I think much more than investors we simply need more liquidity, more velocity, and more value building. More users simply using this platform as a currency will give it value.

It becomes very obvious that the reason Hive isn't valued very highly is because the world doesn't value the content (blogs) very highly. What happens when other jobs and ways to generate value are introduced? We should gain a lot of value. This game I'm talking about ties into that.

The idea of destroying/slowing my growth here for a POB idea doesn't make sense to me.

And that's totally fine. If you don't like the game don't play the game.
Imagine if I had said something a little different:

I'm creating a game on Hive. If you want to create a card the cost is 1 HBD. Send coins to @edicted.

Would you have ever questioned this business model? That's how it works right? I make the product and you buy the product and lose all the money that I then gain (zero-sum game). Only with crypto can the value be recycled and synergized.

Let me tell you, this was 100% my plan in the beginning. I was thinking of a way to capture value for myself. However, by changing the target account to @null and now it feels like you're throwing away money? Not true. In the scenario where my account captures all the value that money is going to be dumped by me back onto the market and recirculated. Money sent to @null never escapes.

The reason I determined it was a bad idea for players to pay me directly for playing my game is that it fully undermines the decentralized ownership of the game. If I'm the one getting paid that allows me to create cards infinitely for zero cost (paying myself is free). When players are forced to send money to @null they know that the card they created has value because everyone else with a card had to send money to @null as well.

There's also a speculative aspect to this as well. Creating a card not only creates governance tokens, but it also creates the card, and if players like that card, they will pay you to copy it. I also plan on making an auction house to sell the ownership of cards. The value of the card plus the value of the governance tokens could easily have a higher value than the 1 HBD burned to create them. This means you could sell the governance token and the card and actually make money by creating cards that people want to use/own (proof-of-brain). No one is forcing anyone to hold. You might find that you can actually grow your stake in Hive with this game, not burn it away.


You spend 10 HBD on the game (@null) to create 10 cards. Let's say your share of governance tokens that day for this purchase was around 5 HBD. You have no interest in holding the governance tokens so you sell them. Now you're left with 10 cards that cost you 5 HBD. If those cards are popular, users will start paying you (say 0.1 HBD) to copy them for their own use. Say this happens 50 times across your 10 cards, now you've made all your money back.

After all this you're still left with the ownership of 10 cards, say I release an auction house after a few months and you auction off the 10 cards for 1 HBD a piece (or more). Now you've just gained at least 10 HBD after everything is said and done and you've fully cashed out of the system. You didn't destroy any value; you actually generated value.


As I said, you give me a lot to think about in terms of perspective. Let me know if you have any other questions or if this whole process seems ridiculous or whatnot (trying to avoid looking like a pyramid scheme). It's very hard to try and explain everything all at once, as should be obvious by the lengths our comments eclipsing the length of many top level posts :D

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