Few have a genuine understanding how powerful the incentive model truly is. Most of cryptocurrency overlooks this fact. However, it is the powder keg that will most likely push cryptocurrency into the forefront of society.
It is ironic that Hive is one of the most overlooked blockchains there is. Since the start, this was one of the main premises that it operated upon. Over the last few years, we saw this expand to the second layer. At some point, the world is going to comprehend what is taking place.
Of course, this is not exclusive to Hive. Throughout cryptocurrency, we see this. Bitcoin, for example, was built on this idea. After all, miners are incentivized to purchase equipment and spend vast sums on electricity. There, naturally, it is for a chance to get a block reward. Nevertheless, we see how successful this is.
If Bitcoin can incentivize people to spend large sums of money on specialized computer equipment, what else could be done with this model?
In this article, we will take a look at it.
A Complete Reversal In Our Thinking
To fully implement this, people are going to need to adjust their thinking. In fact, since we operate under an economic framework that values scarcity, undoing a lifetime of thought is required.
Yet, the second this is done, an entirely new world opens up. Instead, of scarcity being the driver, true abundance is. For this reason, tokenization is going to take over. We will see tens of millions of tokens designed, providing people with incentive for anything we can think of.
Here is a quick example:
Gyms charge a monthly membership fee. This is done automatically and the owner makes money whether one works out or not. Actually, since there is no wear and tear on equipment, those who do not show up are more profitable.
How about we switch this model? Instead of operating from that premise, why not reward those who do work out? Provide an incentive to show up regularly. Insurance and medical companies could be brought in to help support the token by providing utility.
Ideas such as this could be brought into many of the existing companies. If they would be open to a completely new way of doing things, they could use cryptocurrency to radically expand their businesses.
Unfortunately, this is not where the innovation comes from. It is unlikely that tokenization by the Fortune 1000 will comes from the likes of Starbucks. Even a Google is going to be slow to embrace this.
Instead, it will be the true innovators who provide the experimentation. Of course, there is a chance that those start ups end up completely disrupting some industries.
This is where the stagnant face some risks.
Those who are quick to adopt a different way of thinking are going to enjoy a lot more benefits. Some major corporations are going to be like Blockbuster and Kodak. They will be too slow to respond.
Staking Is A Voting Mechanism
Corporations can put the idea of staking to use. This is a build in voting system they can access to make decisions. Here we can see how the "community" can replace some of management.
Netflix or Disney could use token staking as a way to determine which shows to fund. Those who own the token are given access to the different pilots that come out. The holders stake their tokens on the shows they want to see receive money for production. Here is where the customer base is making decisions on behalf of the company.
Haven't companies been trying to figure out what consumers want for decades? Here is where they can directly access that information.
The idea of a Decentralized Autonomous Organization (DAO) can also be implemented. Any corporation can establish their token system as a DAO, opening up a new governance model. Here again, the DAO could be accessed for decisions, with the token enabling the "voting" on those decisions. Some of the profits from said decisions could be fed into the DAO, perhaps by purchasing the token off the open market.
Of course, all of this could be integrated as payment or discounts on the different products and services offered.
Hive Already Offers This
As we know, Hive is already engaged in some of what is discussed here. The Decentralized Hive Fund (DHF) is already in operation. It was present from the day the chain was forked. So far, it offers real time voting on any proposal that is made asking for funding. The community votes its stake to determine where the daily pool is allocated.
The world is going to be transitioning to one based upon incentive. This is clear when looking at the general trends that cryptocurrency is already offering. Instead of operating based upon the old business model, we are going to see innovative ways to incorporate tokens into the process.
It will give users a stake in what is taking place. For now, the regulators and politicians are stuck in the old mindset. It is why we need to keep expanding further out, with more projects tied to decentralized chains. At the same time, open source and redundancy is vital. We need to ensure the attack points are minimized.
Overall, this is a much better option for humanity. If companies what our attention, they are going to have to reward us for it. No longer should it be acceptable for companies to simply extract from their customers/users.
This is a mindset people need to adopt. Your time is valuable and if some broadcast network is going to make a fortune off you time to view a project, the least they can do is incentivize you to watch.
Naturally, we know this is not taking place. Here is where individuals have to start taking a stand. Why should we support something that does not reward us for the time we give?
Obviously we should not.
It is time to being talking about the power of the incentivization model and how it is time for companies to start rewarding us if they want our continued patronage.
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