HIVE'S REWARD SYSTEM EXPLAINED!

Hive offers web3 content creators a digital economy were value are distributed among users

hive is a value for value ecosystem, meaning everything do earns you rewards, like posting, commenting, upvoting, reblogs and promoting hive on all web2 social media handles, this rewards comes in form of $HIVE & $HBD.

On hive there are two basic types of users CURATORS AND AUTHORS

CURATORS
Curators are more like investors who actually bought hive and stake it, then search for quality content from CREATORS then distribute value to them, this is done through upvotes, when a curator likes a post he or she does that with a percentage value of his or her total vote value which is generated from their staked hive in their wallet.

Post pay out takes 7-day (a period for the earnings from your post to drop to your wallet) after the seven day period, when a post pay out these curators earn curator's rewards according to the percentage value they upvoted that content with,

see this like earning dividend when you buy a company shares

AUTHORS
The other set of users are called content creators, these users are actually the ones who create content on whatever niche they find interesting, CURATORS will curate their content (distributing value via upvote, with a percentage vote value) and after the 7-day waiting period these creators post pay out will drop to their wallet..

How the Metrics Works

Hive is a blockchain that generates two separate coin, one is $HIVE the native coin of the hive blockchain and the other is $HBD hive's stable coin which is pegged to the Dollar. post paid out in these two coins $HIVE and $HBD.

when a post pay out the blockchain automatically staked the $hive coin this is known as HP (Hive power), this is done so to

enable users earned higher author rewards

enable the system to generate more Resource credit these enable users carry out various activities such as posting, commenting, rebloging and see this like your mobile data on the blockchain, since hive runs on feeless transactions The RC makes this possible.

Enable AUTHORS to become CURATORS, the staked hive generates values that can be distributed to encourage other authors as well, so this means that creators can earn curator's and author rewards.

the other pay out of your post is called $HBD, hbd stances for hive backed Dollar, this is a usd-pegged algorithmic stable coin generated by the hive blockchain, this is also listed in some DEX but $HIVE is listed on all major DEX across the globe.

However the hive post payout metrics default settings is 50/50 i.e 50% $HBD & 50% $HIVE,

however you can alter this settings to suit your needs such as 100% $HBD or 100% HP or decline rewards or set Beneficiary to 100% meaning post pay out will go directly to any account you want to get the rewards.

content creators on hive are encouraged to grow their HP, because of the numerous benefit attached to a higher Hp such as Higher author rewards, higher curator rewards more Resource credit to carry out various activities and feeless transactions on the hive transactions.

images sourced from Bhattg'X handle

Posted Using INLEO