Hey there, fellow entrepreneurs of the HiveHustlers community! Are you ready to take your business to the next level? Or are you looking at getting your own side hustle started on the blockchain and just not sure how to get started? If you've been exploring the world of cryptocurrencies and blockchain, you might have heard about creating your own digital tokens to benefit your enterprise. Well, today we're going to dive headfirst into the crazy world of tokenomics and discover how to create a Hive-based cryptocurrency for your business using Hive Engine.
Why Hive-Based Cryptocurrency?
Before we delve into the how, let's first explore the why. Why would you want to create a Hive-based cryptocurrency for your business over other blockchains? Well, here are a few compelling reasons:
Community Engagement: By creating your own cryptocurrency on the Hive blockchain, you can foster deeper community engagement. It's like having your own mini-economy within the larger Hive ecosystem. Creating a Hive Engine Outpost for your community around your token can also open you up to having your own NFT marketplace which gives your token another use case for your customers to use.
Branding and Loyalty: Your custom tokens can serve as a unique branding tool. They create a sense of exclusivity and loyalty among your customers, motivating them to engage more with your business. They will want to stake your token to earn more, or find other ways to trade and use your token in the wider ecosystem, which could be like a word of mouth type of promotion for your business.
Fundraising and Investment: You can use your tokens for fundraising, allowing your community to invest in your business, potentially raising capital without traditional methods. Depending on where your business is located in the world, you may want to check with your local regulators to see if you have to register your token as a security. When using for fundraising purposes, like having an ICO or Initial Coin Offering could land you in some regulatory crosshairs. So be careful on how you approach the distribution of your token.
Incentivize Actions: Use your tokens to incentivize certain actions, such as content creation, participation, or referrals, further driving engagement. You can hold contests and giveaways to help build attraction to your brand. This has proven to be an effective tool for many different communities and businesses on Hive.
Now that you're aware and excited about the possibilities, and this doesn't even really cover what you can do with NFTs, let's get into the nitty-gritty of creating your Hive-based cryptocurrency.
Getting Started with Your Hive Engine Token
Hive Engine is a powerful tool that allows you to create and manage your custom tokens on the Hive blockchain. Here's how to get started:
1. Hive Account and Wallet
First things first, create a Hive account if you don't already have one, and ensure you have enough Hive Power to cover transaction fees. This is the base currency you'll use for transactions on the Hive blockchain. It is suggested to install the Hive Keychain application on your browser and your mobile phone to manage your account.
2. Hive Engine or Tribaldex
You will log into either Hive-engine.com or more preferably, Tribaldex with your Hive credentials. Here is where you will have the ability to create your own tokens or even your own token based community, called an Outpost.
3. Token and Outpost Creation
Once you are logged into your Hive Engine account, you can create your custom token. Choose a unique name, set the supply, and add a logo to make it visually appealing. You will need the Hive Engine token called BEE to pay for the token creation fees. It cost 100 BEE for basic token creation, but if you want to add staking features, it's 1000 BEE, and delegation functions is another 1000 BEE.
On top of this, if you want an outpost, which is a custom front end for your community that operates on your token, you will need to pay another 5000 BEE for this creation. To add an NFT Marketplace, that's another 100 BEE. A swap pool which gives your token DEFI capabilities is 1000 BEE and the rewards pool that pays out people for providing liquidity to your swap pool is another 100 BEE.
4. Define Token Properties
Decide what your token represents and its use case. Is it for a loyalty program, a virtual item, or a stake in your business? Set its properties accordingly. If you create a community, you can let it be the reward token to participate and engage.
5. Distribution
Determine how you'll distribute your tokens. This part takes allot of thought and planning. It will also make or break you with regulators. Will you reward them to users for specific actions, sell them, or a combination of both? For instance our HUSTLER token is earned by posting to our community. We have a unique token ecosystem though (long story) but when you stake the HUSTLER token, you will then earn other tokens in the ecosystem. It's pretty cool stuff, but can get real complicated if you don't know what you are doing. So feel free to reach out if you need some assistance.
6. Market and Trading
Tokens on Hive Engine are tradable. You can set up a market for your token, allowing users to buy and sell them on various exchanges within the Hive Engine ecosystem. You can set up the swap pools or diesel pools and set up rewards for those who provide liquidity. Trading these tokens can be a fun way to earn more and build value in your business. People can earn your token then trade it for SWAP.HIVE on the market, or purchase any other token you set up a diesel pool for like Hive Backed Dollars, or HBD, or SWAP.BTC, which is the Hive Engine wrapped version of Bitcoin. These pools can bring more value and use case to your community.
Promoting and Using Your Token
Now that you've created your custom Hive-based cryptocurrency, it's time to promote and utilize it effectively. Here are some of the things you need to focus on:
1. Marketing
Spread the word about your token within the Hive community and on other social platforms. Explain its utility and how it benefits your community. The more consistent you are about promoting your token, the more exposure you will get. I suggest getting creative with your posts so that you don't seem like you are spamming the community. This makes your project look a bit on the fishy side.
2. Tokenomics
Develop a clear tokenomics plan. Define the rewards and incentives tied to your token and communicate this effectively to your community. You can do this as a post on the blockchain and it would be considered your token's whitepaper. Think of it as your token's business plan. You want people to know what your plans are in a clear and concise way.
3. Create Engagement
Use your token to encourage engagement within your community. Offer rewards, run contests, and gamify actions to keep your users actively participating. This can build up allot of hype behind your token if done correctly.
With an outpost front end, you can create a proof-of-brain model that would reward post creators and curators for the creation and engagement of blogs, videos, and more.
4. Monitor and Adjust
Regularly review the performance of your token and make adjustments as needed. Listen to user feedback and adapt to changing market conditions. Make posts on how the token is doing and what kind of developments are going for the future. It's important to be transparent with your community about what's going on with your token. If something is not working, use community feedback to find out the best solution for a change in direction. We have had to pivot and make adjustments a few times with our token economy.
The Bottom Line
Creating your own Hive-based cryptocurrency using Hive Engine is an exciting opportunity for entrepreneurs. It's a powerful way to strengthen your business, increase community engagement, and drive loyalty. Just remember, success in tokenomics is a journey, and you'll need to continuously innovate and adapt to see the best results.
So, what are you waiting for? Start exploring the world of Hive-based cryptocurrency and take your business to new heights. Your community is waiting to become a part of this exciting adventure! 🚀
Keep calm and Hustle on!
Hive Blockchain community: https://hivehustlers.com
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