RE: Inflation, Abuse, and Stagnation: Fixing Hive’s Economy Problems
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Thanks for mentioning me, and linking to your previous post with my comment inspired by your questions about HIVE. Glad to see another thoughtful post from you!
I don't have that much to say this time, regarding fixes for the HIVE economy. My thinking is that we have a fairly good economy and there are no guarantees that any given fix will actually improve things, especially when one person's idea of an improvement might be another's idea of a wreckage.
I'm thinking that regardless of the rules of the HIVE game, if we could somehow check the multiverse of all other versions of HIVE that could have developed, we would see different rules for sure but generally if the Pareto Principle is a real thing, then maybe we would quite often see a similar distribution of HIVE among the Hive-ians.
Vilfredo Pareto was a sociologist and economist who noticed that "80% of the land in the Kingdom of Italy was owned by 20% of the population". That work is from the early 1900s but "the 1992 United Nations Development Program Report... showed that the richest 20% of the world's population receives 82.7% of the world's income." So to generalize, in an economy (such as HIVE as one example) it seems that the dynamics of luck and skill produce these kinds of power distributions where a small amount of entities hold a large amount of power.
Source: https://en.wikipedia.org/wiki/Pareto_principle
I also think of things we've all seen, where say 6 folks sit down to a game of monopoly or poker and everyone starts with the same stakes. It does not take long for the stakes to redistribute to something resembling 20% having 80% of the funds. On another night, the people with the major amount of funds may be different due to the chance element of the cards or dice, but there is still the skill element and if you play with the same folks many times you'll notice the ones with skills will tend toward winning evenings.
So in conclusion, HIVE is a social game involving tokens that the players want to accumulate. Regardless of the exact rules of the game, those with the most skill at understanding the rules of the game and the psychology of the players will be more likely to grow their assets. Get good at the game and don't worry too much about changing the rules which may or may not even improve the game.
Just a thought. Have a great day! :)
Thx for mentioning this economic rule. But what i see as a main problem here is not that the 20% od useres Has 80% of the whole shares (if this is acurate for us - i didnt check that). The main problem about i am talking is that about 0,05% of the active useres have 100% power to decide who will get money from DHF.
And a solution is not changing system, but changing few ppl behavior.
Yes, I'm also not sure of the exact HP distribution, whether 20% hold 80% of Hive Power.
I have read people's posts here where it was said that if everyone other than that very small group of top HP holders is against a DHF proposal that they could prevail, but I have not checked the numbers. And I think the only way they keep a certain proposal from being funded is to vote for the Return Proposal, but that has side effects of not funding other projects. It is complicated and I have not given it much thought.
Your post shows that it is important to consider these things though. So thanks for bringing it to our attention. :)