Looking Deeper Into Crypto Tokenomics Doing A Comparison Between HIVE and COTI With Regard To Inflation

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Again this post is not having a dig at HIVE and where things have bene going wrong, but more about highlighting where the problems are. To say I am concerned is an understatement because I do care about this community. If I can get the message across then I feel as though I am helping.

I think with everything that HIVE is experiencing with regard to self inflicted inflation which is kind of depressing and sad to see I thought I would compare HIVE to COTI. This makes logical sense for a few reasons as COTI is my second biggest bag after HIVE ,has a similar market cap and also had planned 30% inflation for the launch of COTI V2.

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COTI current market cap of $32.181 million versus HIVE at $37.307 million.

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Both crypto projects are underperforming with one thing in common both having high inflation with one being planned and one not planned.

The difference between the two crypto projects for what they offer are not even close as HIVE is more geared to the social aspect and self earning via activities whilst COTI is an L2 token on Ethereum concentrating on privacy with proven tech developed to back this up and is available for more than 70 blockchains.

Last year COTI announced that for the first year of launch for COTI V2 they would have a 30% inflation rate moving the current circulation of coins from 2 billion to 2.6 billion coins which for myself and others in the community was not a problem as this was planned. Adding 600 million tokens to the eco system as an investor is not the kind of news you want to hear as your value would be diluted by 30%. The important take from this is the COTI team had a plan and you have to believe in that they have got things right.

What is important to note is that the COTI token is not used to pay the team or for any development. This is self funded using money raised from the initial coin offering when COTI was launched. Those funds are used by an AI trading bot that was built in house and covers all the teams expenses. COTI also has a private payment network suppled to various businesses that generates funds monthly and why this is a sustainable project. These funds generated also help pay for the APR in the COTI treasury paying investors.

When the COTI numbers are broken down 58% of the 600 million newly minted COTI would go to stakers, liquidity providers and validators (nodes). 24% for incentive schemes based around various marketing projects, eco system grants. the remaining 18% was set aside specifically for private developers building on the COTI system using the available privacy technology.

If we look at HIVE there is a big difference to the above with all funding coming directly from the HIVE eco system and the above 20% inflation we are seeing was not planned and has just happened over time. If this was planned with a strategy in place then fair enough, but this has been a combination of spending that has kind of got out of control whether we admit this or not.

Does HIVE have any new partnerships from what we have developed with other block chains because I do not see any. COTI is rolling out partnerships continuously and is playing the long game with so many pies in the oven it is hard to keep up. Not all of inflation is bad as long as their is a definitive strategy with a plan to grow the eco system for the benefit of the entire project. The intentions for HIVE I have no doubt were good, but clearly those have not been working for some time and the thinking has to change. For one HIVE lacks some type of leadership to help guide the blockchain and not having a figure head is a positive and a negative because we would not be doing half the things we are doing if someone was overseeing this.

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