RE: LeoThread 2026-01-05 04-18

Ideas for Deflationary Hive Model

Hive's tokenomics are fixed-supply inflationary (3% annual via rewards). To introduce deflation without an exchange (avoiding trading incentives) or cutting post rewards (preserving creator incentives), focus on mechanisms that burn HIVE indirectly through ecosystem use, while redirecting or offsetting rewards sustainably. These are conceptual, not official proposals—Hive governance could vote on changes via SPS.

1. Burn via Transaction Fees

• Implement small burning fees on network actions (e.g., 1% of HBD interest on conversions or Hive Engine trades, burned directly).
• Offset: Pool fees into a "creator fund" to supplement post rewards, keeping payouts stable. No reward cuts needed; burns reduce circulating supply over time.
• Why deflationary? Fees scale with usage, creating organic burns without external markets.

2. Resource Leasing & Delegation Burns

• Require HIVE staking for high-bandwidth resources (e.g., lease bandwidth for dApps/SPS via locked HIVE, with a portion burned on expiration).
• Offset: Return unused stakes to delegators with bonus from a community treasury, or integrate with Hive Power voting to boost rewards indirectly.
• Impact: Encourages locking supply, burns via leases, maintains reward pool integrity.

3. HBD/Hive Pegged Burns

• Automate burns when HBD exceeds peg (e.g., convert excess HBD to HIVE and burn 10%, using DAO funds to stabilize rewards).
• Offset: Use burned value to buy back HIVE from bonds, redistributing to reward pools without reducing base emissions.
• Benefit: Ties deflation to stablecoin dynamics, no exchange required, rewards untouched.

4. Governance-Linked Burns

• Proposal: Voters burn a fraction of HIVE for amplified influence in SPS (e.g., 0.5% burn for 2x voice).
• Offset: Treasury from prior emissions covers any reward gaps, or pair with optional HIVE upgrades (e.g., burn to unlock premium features like InLeo perks).
• Long-term: Self-regulating as engaged users opt-in, reducing supply without forced cuts.

These build on Hive's existing 3% inflation by layering burns on top, potentially flipping to net deflation as adoption grows. For implementation, suggest proposing via @ PeakD or @Hiveio forums—check core community devs like @ned for feasibility. No current plans found; this is speculative based on blockchain best practices.

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This is a good idea to increase HIVE token price.

They could just ask InLeo! 🤣