A lot of businesses and systems fall into the same traps of "if you build it, they will come" you know that famous line from the movie Field of Dreams. But that's far from the truth and on top of that 20% of business fail in their first two years, 45% in fire years and 65% in 10 years. That means just 25% of new businesses survive for 15 years or more so you chances of making it as a new application are one in four.

Today I want to dive into how things currently work on hive, the current marketing direction and see what we can do to clean this place up a bit. What things I personally feel need to change in order to make that happen as well.

Hive As A Reward

Hive has prided itself and branded itself now as the blockchain for social web3 to replace or at least provide a head to head comparison to web2 social. Places like Facebook, X, Instagram, Youtube and Tiktok.

Now right now Hive does this through applications of which 50% of what is earned by users is instantly powered up and has to be held as powered up for 13 weeks. The other half normally comes in at the stablecoin token HBD which people can do whatever they want with it. Sell it, trade it, put it into defi etc.

These core application frontends for hive then have to have hive on hand in order to onboard and create new accounts. This is done by either burning or by having resource credits from staked hive each day.

The issue however with this is there's no revenue generated outside of the hive being earned by these front ends and in some if not many cases they actully get DHF funding while also earning huge rewards already from the general emissions of hive.

You can be sure that some if not a lot of this hive is being sold off in order to fund the project.

Now while these platforms can be great an onboarding new users you eventually run into a issue where the application only continues to get stronger and strong taking up more and more market share and while new users do eat up some of the rewards pool it's normally such a small amount that it's not making much of a difference.

We also clearly have a issue with onboarding in terms of keeping people to stick around. This normally comes from a lack of earning anything on their posts which comes down to two things.

The first being that dissolvability on the platform and these apps are just awful. You'll need to use discord and other tools and spend countless days and hours building up reputation which a lot of people are just going to give up and move on.

The second is there's no revenue generation outside of votes. It's also confusing to a new user how they actully earn and that you have to wait a full week before you see your first payout. (Honestly I feel like this could be reduced down to 48 hours or 72 hours.

Hive As A Resource

At some point I believe hive will become more of a resource credit over a reward credit which is currently what's happening. But the things that need to change is there needs to be better tools for developers to develop on hive. Right now we have Hive-Engine and sure people will say it's not really a layer 2 token etc etc. But the fact of the matter is it's the only thing that was ever built on hive that remotely gives anyone the ability to launch a kind of layer two token on hive and build their own game, app, platform, program etc.

This resource token allocation later will mean that when there is a solid layer two token building for hive that resource credits will become more important as the applications will need these in order to have resources on the chain in order to create accounts and do general tasks on the blockchain.

This would usher in a whole new phase of Hive and increase the value of it as more applications would have to have more hive staked in order to keep their application running.

Ads

Yes, one thing hive needs to understand or at least the applications built on top of it is you need to be running ads. I legit don't care if you hate them if your application is not making money or at least covering costs then you're going to end up doing one of two things. Either sucking more and more hive and DHF funds which get sold and put downward pressure on the hive token or you're going to have to close up shop because you're not making any money.

All web2 applications that hive is trying to compete against or provide some avenue or web3 versions of it all run off of ad revenue. They also just recently incorporated subscriptions, donations and the likes of which in almost all cases 45% or more of the ad revenue, subscriptions and donations goes to the host company and not to the person creating the content.

Hive can change this by running ads and then running smart contracts or over swap type features to either boost their own token running on top of hive which true layer two tokens would like you see on Ethereum and many other chains and/or to buy hive and reward others with hive from the rewards pool. However I firmly believe that a layer two token for the application is what's needed with perhaps a light mix of the hive token as part of the reward as well.

Or yes another or lol they only use hive but they buy hive off the market from the ad revenue and then divide it out over the content creators for that month much like you see with Twitch, Youtube etc.

This is a key aspect that is missing from Hive and why hive continues to struggle to really become anything to this day. This transitions has to happen at some point and until it does hive and the applications on top of it will greatly struggle and continue to put huge negative pressure on the token price overall.

So let's do better, lets push these projects to do more and if you have the ability to develop yourself then lets start building that revenue and a true system where everyone benefits application and user alike!

Posted Using InLeo Alpha