RE: DHF Drama And Why You Are Wrong
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Comparing just a single day DHF payment vs the traded volume is a MEANINGLESS metric.
What is important is to look at the total paid out in a month/year ACTUALS vs the market cap equity held by HP holders. In 2024 there was over $6MILLION paid out via the DHF which is higher than the rewards earned by HP holders.
I didn't check the 2025 total payout yet, but if the trend of 2024 continues, say 15k per DAY = $450k per MONTH = $5.4M per YEAR continues, it will be equally as high.
This is a MASSIVE dilution of HP holders equity. Why would anyone buy Hive with this tokenomic game being played?
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thanks for pointing this out; I was well aware of this limitation, but since I am quite familiar of Hive's chart on a daily basis I was quite confident that it wouldn't be much of a difference on a yearly basis.
Let's do the math (I looked at the charts for Binance and Upbit and calculated the $ average by multiplying volume * Hive volume and added additional volume from the other exchanges as a fraction of what they have of Binance's volume so I wouldn't have to do it for every exchange - it is a rough estimation, but definitely usable).
What I came up with was around $11.7B in trading volume for March 2024 - February 2025 (there is obviously a large spike for the last few months, but we are in a bull year after all).
$5M of inflation / $11.7B volume per year
= 0.0004272 or 0.042%
So around 2-3 times more than what I calculated for daily which is...
NOTHING :)
I stand by my argument: DHF sell pressure is ~0
And keep in mind that this is with 10k from valueplan (which probably won't get funding anymore)
The only mistake you're making here is rounding down the value of the things the DHF pays for to zero.
It's like when people say Bitcoin "wastes energy".
Well, how much does it waste?
And then they reference a hash calculation that implies that 100% of the usage is wasteful.
Another thing you are missing here is the market cap multiplier.
When a dollar of Hive is sold the market cap can decline $10-$100 easily.
Vice versa for when Hive is bought: x10-x100 is normal ratio for even Bitcoin during rallies.
Hive could even be x1000 under paper-thin liquidity conditions.
You do make a good point here though
What is the inflation spread again?
65% reward pool...
10% witnesses
10% DHF
15% HP interest
So with the ninjamine in play you're claiming that the 10% we are supposed to be allocating was actually higher than the 65% we printed last year... Pretty jarring numbers if true.