RE: Making sense of Hive's tokenomics: Deflationary in Inflation
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What it means is that the inflation rate remains substantial until 2037 when it will stop inflating.
Even if the inflation flattens out in 2037 and becomes less than 1%, it is always a percentage of total virtual supply, and virtual supply is on an incremental increase, so the absolute number will still be high. In fact, even with a constant inflation rate below 1%, the absolute number will keep rising YoY.
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True that. Thanks for pointing that out. Wonder how things will be like then.
Hive really needs serious adoption to offset inflation and price drawdown. By definition, Hive is a unique blockchain that pays for "unit of labour", not primarily/necessarily for "unit of investment." Therefore, Hive's price dynamics are really different.
We should also appreciate that Hive is doing well since 2016 despite this proposition, but it needs better resilience and adoption down the line to make it sustainable. And the proposition of adoption implies "unit of owner", not "unit of user".
Adoption is going to be bleak. With AI entertaining more, social media is going to take a back seat in due course. Blockchain also takes a break in terms of the overall narrative.
I do agree with that. AI has become the poster boy of digital space and particularly for the consumption of information, even when it happens to be in the intellectual domain.
So Hive has to carve out a niche where it can make an AI decentralized feed data. How AI will behave is contingent upon how data is fed. The digital space hitherto has been a centralized data pool. With Blockchain-based decentralized data pool and decentralized AI, thereof will surely be a long, drawn process. I am afraid the pace at whicha AI is evolving might outpace the the Blockchain based Data evolution and feed.