The Urge to Power-Down, the Will to Power Up

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Demotruk put out some interesting stats on Hive account opening in relation to engagement yesterday. It turns out that the reward pool isn't as important as we think for the retention of Hive users. People are aware of the reward pool but it isn't doing so much to keep users interested. Why is that? One opinion was that rewards will not take the primary place of engagement and influence on a social media platform. I heard there has been suggestions to scrap the Hive reward distribution system as we know it and move on from blogging. While I think the system will inevitably evolve, the reward system makes a big part of the current Hive experience model.

We can understand why there is so much focus on gaining and keeping stake. As a new platform, we have a lot of reasons to encourage people to hold the assets at their disposal. There is the multiplier effect we could gain from the success of the platform. We also have influence and the ability to participate actively in the decision making processes on the platform. Definitely there are advantages, but they come with the passage of time. It takes discipline to delay gratification until the so called 'right time'.

When is the right time for a Power down though? I think the most accurate answer would be when it becomes feasible to retain influence and grab some decent returns off the move. Yet there is almost always the temptation to sell for cheap. Most of us have undersold our Hive assets for next to nothing. There are times when selling for the wrong reasons come to backfire. Selling for the right reasons though always feels well worth it irrespective of current prices.

My Hive story has been filled with ups and downs, mostly ups though. One thing that does stand out for me as a marker of the Hive experience is the amount of assets we each have at our disposal. Of course there are different ways to enjoy this platform and some people have entirely managed to completely demonitize their Hive experience. I wish I could say the same, but Hive is certainly more than the reward distribution system.

There are times when I wish I didn't Power down, and times when I don't regret having to. Of course, if we don't have people building their stakes we can't grow the platform. It isn't impossible, and due respect is given to everyone who has the fortitude to keep growing regardless of their personal circumstances.

This post has been an odd mixture of different thoughts. I hope someone gets something out of it.

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The reward pool is the only reason that I am on this platform.

The reword pool on Hive and #hive-engine are a bit convoluted, and few people understand the mathematics.

As such they think more of the rewards on the posts than about the rewards pool.

Unforutunately the drop in the price of tokens tends to be greater than the interest rate. People who came to HIVE thinking that they could make money through curation have been demoralized.

Imagine a person who bought $1000 in HIVE POWER to curate and their HP is now worth $300.

Even worse image a person who bought into the dream of #POB and bought $1000 POB to see it devalue to $100.

The curators feel demoralized because the coins failed to retain their value system failed to pay off.

This is simply a sign that people were overly optimistic about the payoff. It does not mean the rewards pool is bad.

The fact that the platform has demoralized curators does not mean that the reward pool itself should be scrapped.

HBD has been the primary focus of the platform for the last two years. The HBD pool derives its value from HIVE. The pool is over six percent of HIVE and is near saturation. Have you noticed that whenever the price of HIVE dips, HBD convert millions of HBD to HIVE?

!WINEX

Posted using Proof of Brain

There's indeed time for both and sometimes deciding when is which especially when it comes to power down can be hard. I also notice that rewards isn't necessarily the main reason why users stick around although it is a key part of how Hive operates.