HIVE Inflation Still A Huge Concern
HIVE APR currently at a high of what I would call a worrying 4.26% which is 1.26% above what we would consider a stable 3% which was the normal. On a personal note I would be happy if the APR was still at 3% and not printing the extra 1,26% which is printing far too many HIVE coins. We may all be earning more via the stake we have known as HIVE Power, but more coins means less value due to the extra coins being printed.
This for me who has been on the HIVE blockchain for a few weeks short of 8 years is the most worrying time I have experienced. The threat of the high inflation that has been self inflicted by those signing off the DHF fund proposals is short sighted. The proposals paying out is flooding the exchanges with HIVE and this is unsustainable.
As much as the idea of having a rally car emblazoned with HIVE livery we as a blockchain cannot afford this luxury expense and I do hope this is placed on hold for the next rally season. Price tells us we cannot afford to have tens of thousands of dollars of HIVE considering the current price there is roughly 16 HIVE for every dollar. I do not have the exact figures off hand but can recall figures close to $700K for the first 2 quarters of 2025 which is in todays HIVE pricing close to 12 million HIVE hitting the exchanges which is 2 million HIVE monthly. Decentralized marketing does not work as there is no real strategy and why it will always fall short.
All we can hope for over the course of this year is that lessons have been learned and that the inflation rate comes back into a realistic type of range or we will see the number of HIVE tokens increase rapidly which dilutes everyone's values.
Like I mentioned earlier in this article I am concerned for the future of HIVE and where we will see the value because what we are witnessing is a dilution of what has been created. There is still hope and not all doom and gloom and the concerns I have should be everyone's concerns as this does affect each and everyone of us. It was not that long ago we were at 450 Million HIVE and now we are heading at a faster pace to 550 million circulating HIVE.
The 4.26% APR may not be finished and heaven help HIVE if we start heading towards a 5% because that would be very bad news. I do not have the answers on how to fix this, but there also needs to be some common sense being used to change the current course of where we find HIVE right now.
By a matter of interest when HIVE achieve the $3.41 back in November of 2021 we had a supply of roughly 350-360 million HIVE tokens. That number has nearly increased by 50% which I find worrying and concerning.
I asked Google AI about HIVE inflation and if the AI is right with HIVE at 7.5% then it would take an extra 5 or 6 years over and above the 2034 expected 0.95% inflation rate so more like 2040.
Posted Using INLEO
HBD was back down in the eighty cent range again today too which is not good.
I had not even noticed which you are right is not a good sign either.
This current APR on just staked Hive is above what the certificates of deposit pay in USA right now... Add curation APR of 8-12% and you have a rate of inflation that insures that Hive cannot keep its value in USD...
The inflation rate accounts for curation and APR plus witnesses and they need to stop spending on marketing. The HBD is not helping matters either and that 15% APR should be at least cut by 50%.
I saw suggestions that we should really lower HBD APR and increase APR on the staked Hive to encourage Hive staking...
I understand your concerns for inflation and continued selling putting pressure on the price of HIve, possibly pushing it lower. So it helps to support those who are stacking and not selling. I am stacking my HP, not selling, and would appreciate your support.
I will help support your growth.
Facts . I've been using my gig work income to buy hive
When there r less hive staked, it also boosts this number meaning that system redirects that inflation to current stakers.
Don't quote me on this but I think that extra comes from people having unstaked hive.
I think you could be correct with this so in theory if those people had kept their stake it would have paid out the same amount.
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Hive will go much lower if nothing changes 😂😂😂😂😂😂🍻
wow that’s a really concerning number on the apr it seems like they're overdoing it with those dhf payouts.
I am happy that more and more ppl see this problem. I was talking about it already year ago...
What we must do as quick as it is possible, is cut all DHFs for some time. And start to think harder how and what we should support with blokchain money.
When APR moves from what felt like a stable 3% to 4.26%, it raises valid questions about long-term token dilution on the Hive network. Higher rewards feel good short term, but inflation always has trade-offs.
Oye está inflación está acabando con todo 😭😭
HIVE inflation is looking like the national debt.. maybe what we need are tariffs..
"We're gonna build a ralley car and make LTC pay for it.."
This assessment is important.
On the other hand I've seen author rewards crater in the last year, not great..
There should probably be a new way of earning hive tokens, like rewarding BOINC work - some kind of distribution which brings people into the blockchain.
It is worrying, but the status quo will remain until the DHF well has been bled dry and there are so many HIVE coins printed that is worth fluff all.