Did you know your Hive Power grows at 3% per annum without you doing anything....?

in #hive2 months ago (edited)

I got to wondering how many people actually know this small factoid about the Hive EcoSystem....

That in addition to your Curation Returns on voting with your Hive Power, which these days seems to float around 8-10% (which isn't too bad in itself) you also get a 1.5% just for holding Hive Power...

You can see this on the Peakd Front end...

Screenshot 2022-06-22 at 05.50.03.png

When you've got a fair stack of Hive Power like I have then this 3% ends up being quite a nice little perk...

Screenshot 20220619 at 11.49.05.png

1.5% of 64400 (rounded down!) is 996 Hive (well, HP) per year - Nice!

Paid out how often...?

What I can't seem to find is any information on when this is paid out, but it is paid out... this was my HP at 11.18 today

Screenshot 20220619 at 11.18.34.png

And then at 11.28, without me having claimed any rewards...

Screenshot 20220619 at 11.28.06.png

Then again about another 15 minutes later... another 0.039 HP up...

Screenshot 20220619 at 11.38.00.png

The Easy Math in Hive Power Version....

66400 (HP) * 3% = 1992 Hive a year (Nice!)

1992/ 365 (days)/ 24 (hours)/ 60 (minutes) = 0.0038 Hive/ minute.

0.0038/ 20 (3 second blocks on Hive) = 0.00019 per block.

The Vesting Shares Check....

Of course the PeakD interface just reads from the chain, which operates in MVESTs and according to Hive Blocks I had around 121,189,781.180283 VESTS at 11.54 on Sun 19th June...

Screenshot 20220619 at 11.53.36.png

I'd expect Hive Blocks to be a bit more rapid in reading from the chain so I spent a while refreshing every minute to see how long it would take for my underlying Vests to increase, which would signify having had some interest added...

But after 15 minutes of trying this, it was just the same, so either this is delayed by even more than where PeakD is reading from or PeakD which is just a bit odd IMO, as the rate of increase shown on PeakD is about right!

So I don't really know what's going there!

Final Thoughts...

Even though I'm not sure how often this 1.5% pays out, it's clearly going up on a regular basis without me doing anything, which is just another reason to stack Hive Power!

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“Hive Power increases at an APR of approximately 3.05%”

I’m pretty sure that the discrepancy between 1.5% and 3.05% is because the nominal 1.5% figure would be actual if all HIVE was powered up. But holders of liquid HIVE get none of that 1.5; it all goes to those who staked. And since slightly less than half of all HIVE is staked, hodlers of HP get slightly more than double of 1.5

Even though I'm not sure how often this 1.5% pays out, it's clearly going up on a regular basis without me doing anything, which is just another reason to stack Hive Power!

I think it’s paid out every 3 seconds (with each block). If you look at the wallet of an account with a huge amount of HP, such as @freedom, and refresh your browser like someone who’s had too much caffeine, you can watch the HP grow:
https://wallet.hive.blog/@freedom/transfers

But remember that vests remain static, even as HP grows.

Thanks for the clarification - all news to me!

There used to be a website that would show you your HP in the form of an odometer. You could slowly see the numbers roll up from the inflation rate. As far as I know, it's a constant growth, depending on your stake. In my case, when I reach 12500 HP, I'll be getting roughly 1 HP daily. I'm basing it on the 3% APR in PeakD. At the moment, I'm earning less than 1 HP per day in inflation.

You also see it in delegations. For example, if I delegate 200 HP, a few weeks later it will be 203 HP or so.

Imagine you have 1,000,000 HP, your daily growth would be about 82 HP.

The conclusion I draw from the comments is that WE NEED BETTER DOCUMENTATION.

Even us, older users, and even some small witnesses (speaking for myself) barely understand the surface of what Hive is capable.

We need more and better docs so that we can discover those "small" (big IMO) details about how the ecosystem actually works.

There really are no downsides to holding stake

I thought that was the 3% for staking or is this something else entirely as extra?

Posted Using LeoFinance Beta

Agree, it should be around 3% according to...

image.png

Yes he @revisesociology should be getting roughly 2000 Hive per year. I calculated mine to around 5.7 Hive per day and couldn't work out where the 1.5% comes in. This increases virtually every minute and not every 15 minutes.

Posted Using LeoFinance Beta

Maybe HiveBlocks needs updating!?

I was going to say it's 3%, but others beat me to it. It's nice to have that little extra every day even if I do nothing. I almost forget about it when I am trying to work out how much I might earn over a month, but it can be an extra 200 HP.

It is 3% my mistake, and news to me, but good!

Reminds me of the old days of steem when you could watch the hive power in whales wallets rack up by the second, it was kind of crazy to see! If I remember right the rate of return was super high back then.

I think you still can now, it's not as fast, but it still increases visibly frequently!

It used to be a fascination of mine to load a wallet page that had more than a million in it and promptly refresh the page and see it go up by like $100 in just a few seconds... I was like "wow, if only it were so easy to make money!" LOL

I know it very well because it earns me in the meantime more than my postings!