Second-tier Tokens on Hive Engine - What to Do with Them?
Second-tier tokens have been around for a good three years (I think), even before we forked away from the old chain and created Hive. At the beginning I have been somewhat skeptical about them, and my attitude has not changed much over the years. These days, however, I find myself combing through them regularly, so I thought I may as well write a post about these additional tokens on the Hive blockchain.
Tribe Tokens: A Token for a Community
My first impression with HiveEngine was that since anyone can create their own token now, there would be a great deal of completely useless coins coming out, which sooner rather than later would reach their final value of 0.0000 (or close to it). I was not disappointed in this regard, but before the avalanche of shitcoins turned me completely away from HiveEngine, I saw a glimmer of utility: community tokens help you gain power and influence if you happen to be posting frequently about a certain topic.
Of course not every community token was an instant success. If anyone remembers TUNES, it came out as a token for music bloggers, and I actually saw some potential in it... until it went down and disappeared. Another token that seems to be struggling with its value is BUILD - or BUIDL nowadays. I used to post regularly in that tribe during my last natural building project, and accumulated over 7k of its tokens. Now I see that after a sudden price pump of insane proportions 1246% that took place just now... all of my 7k BUIDL is worth a sobering amount of 2 cents. Right!
To give you some examples of more successful community tokens, there is the CINE token for posts about film and television, the LOTUS token for the Natural Medicine community, or the Creativecoin token CCC for anything art related. The best example for a successful community token is of course LEO, the LeoFinance token for posts about money, investment, cryptos, and anything related. But even here, the current value of a LEO token is at seven cents, which is nowhere comparable to HIVE, which is eight times as much.
Tips and Rewards
Another type of second-tier tokens that became quite common, are reward tokens. They tend to have such names as BEER, WINE, or PIZZA, things that you like to invite people to. I usually got to know these tokens from the receiving end first. Whenever I published a post someone liked, or became active by making a comment, the other person showed their appreciation by sending me such a token. If you staked a certain amount of one type of reward token, you could also send people these tips. For me BEER was the first one I kept getting, and before soon I made up the difference to the required amount by buying it on the market. For a while I sent out a BEER every day to one lucky commenter on my posts... until after a while I felt like I was the only one sending BEER tokens around. Did beer just go out of style? Should I unstake it, sell it, and buy me some LUV instead? Eventually I opted for PIZZA (though I still kept enough BEER staked for a tip).
Tokens with More Complex Utility
If all second-tier tokens were merely reward and community tokens, I may not even be writing this post now. What makes HiveEngine immensely interesting, however, are the tokens built on the Hive blockchain that actually do a lot more! The first things that comes to mind here, are of course the tokens of the popular blockchain game Splinterlands: DEC, SPS, and SPT are just the tip of the iceberg. Then there are the VOUCHERs, PLOTs, as well as tokenized card packs, etc.
The sheer complexity of these tokens, and their respective function in the system of the game already give them a higher level of trustworthiness, and their track record on the market make it clear that many others agree on this, giving these tokens their ultimate value. At this point I should also mention LEO token here, thanks to the numerous DeFi projects, such as CubFinance and PolyCub, that sprouted out of it.
Last but not least, this is also where the ECOBANK token comes in, the token for the land-based project in Colombia, organized by @ecoinstant . It was released only a couple of weeks ago, but its price has approached its 100% increase (before coming back down a bit). It is based on a tangible, real-life business and exciting ideas, so I am confident this will be reflected in the coin's value. (If you're curious about it, check out this post for starters.)
DeFi Using Second-Tier Tokens
While nearly all my wealth on HiveEngine is made up of ECOBANK, LEO, and SWAP.HIVE, I still a have a huge amount of different other tokens of marginal value. Most of these I have no idea how I came about having. Quite often there are airdrops for those who happen to hold certain tokens already. Other times a reward token could end up sending you various new tokens. Most of these I've simply ignored, since they sort of come and go, without anything coming out of them. But not long ago I started looking into the so called Diesel Pools (I suppose that's what they are, even though I use BeeSwap for them instead of TribalDex). There you can dump these coins you would otherwise not use into liquidity pools. Other users can go there to exchange one token for the other without having to take the long cut by selling them on the market for SWAP.HIVE first. But most interestingly, many of these pools pay you rewards ... in other tokens!
I started out carefully, pairing the few BXT tokens I had with SWAP.HIVE. Since then I've been getting (a marginal amount of) free BXT every day. Can't complain. Next I took my POB which is a general token you can get for publishing a post on anything, if you add that tag, and paired it with CENT. Though it took me months to accumulate the POB, in the end my funds in this pool are still under 3$, but its daily rewards include not only these two coins but also WINE, VIBES, and THGAMING. The most noteworthy pools, however, are the ones of the various Splinterlands tokens: the SPS-SPT and SPS-PKM pools are where I put my daily SPS airdrop these days, earning a SPT and PKM reward. Finally, the most lucrative pool I am in, is the PIZZA-ONEUP pool, with a current APR of over 150%, paid out in PIZZA and ONEUP of course.
Hopes and Expectations?
So do I think any of these second-tier tokens are going to lead to anything? Most of them probably won't. The few that I think will, I don't even look at in the same way, as I described above. But most community tokens, reward tokens, or the majority of what I put into the liquidity pools I see as dust collectors... or the hair of a shedding dog, to use a better example. You can either complain about all the dog fur everywhere, or you can collect it and maybe... one day... you'll have enough to weave a blanket out of it. For your dog, of course!
Posted Using LeoFinance Beta
Most crypto projects will fail in the long run. Those that succeed will be the ones with the strongest communities and most robust Engines. Hive offers a relatively safe haven for platforms to flourish, I haven't found anything close to it yet.
Tribes with strong Tokenomics models should be supported (in some way) so that $Hive can thrive, and be more resilient to market manipulation when the big investors really start to notice the Hivechain. Hopefully Witness support cannot be bought 😁
Feel free to peruse the $THGAMING Whitepaper if you have some time. We are about to update it with our two recent Hive collaborations : $LOLZ @lolztoken and $PGM @pgm-curator. These platforms join $PIMP @tokenpimp in our Official collabs, so far.
Have a great weekend.
@jim-crypto
THGaming Hive Community
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You must be killin' it out here!
@thgaming just slapped you with 5.000 PIMP, @stortebeker.
You earned 5.000 PIMP for the strong hand.
They're getting a workout and slapped 2/2 possible people today.
Read about some PIMP Shit or Look for the PIMP District
BUY AND STAKE THE PGM TO SEND A LOT OF TOKENS!
The tokens that the command sends are: 0.1 PGM-0.1 LVL-2.5 BUDS-0.01 MOTA-0.05 DEC-15 SBT-1 STARBITS-[0.00000001 BTC (SWAP.BTC) only if you have 2500 PGM in stake or more ]
5000 PGM IN STAKE = 2x rewards!
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Support the curation account @ pgm-curator with a delegation 10 HP - 50 HP - 100 HP - 500 HP - 1000 HP
Get potential votes from @ pgm-curator by paying in PGM, here is a guide
I'm a bot, if you want a hand ask @ zottone444
lolztoken.com
In a Thai con-do.
Credit: reddit
@stortebeker, I sent you an $LOLZ on behalf of @thgaming
Use the !LOL or !LOLZ command to share a joke and an $LOLZ
(2/10)
Thanks for stopping by, and for all those tips! 😁
Be educative post i will have learn more from yoyr post and I believe i can be under your mentorship friend
Posted Using LeoFinance Beta
Sure, just ask if you have any questions, and I will try to answer.
OK I will appreciate friend @stortebeker
Most I power up because they are either worth too little that I mid as well just power them up and hope for better later lol or I power up because I believe in the project such as LEO, Oneup, CTP.
But there's also many others earned that have nothing to do with blogging which I trade, liquidity provide etc such as LVL, SPT, DEC, Vouchers. Lots of options now on Hive. From a blogging perspective though there are very few worth anything and honestly those projects need to either get on the ball or something.
Posted Using LeoFinance Beta
... well, and if they don't try to make the most out of them, or just sell them for as much as possible. But otherwise if you keep them, the final result may not be that much different.
Thanks for stopping by.
!PIZZA
Your ideas are very good and it will be useful for me maybe I can buy some SPT to start with
Posted Using LeoFinance Beta
Focusing on the tokens used by communities, we all love them because they allow us to get paid for sharing content in a community.
But nobody then asks why someone else would consistently buy the tokens that you're earning?
That is, they don't ask what gives Hive-Engine tokens VALUE?
The most simple answer for community tokens is that they allow you a say in how content is displayed within that community's front-end.
For example if you sell a crypto course, then it could be advantageous to stake LEO and therefore have your content that shows how great you are displayed front and centre of a niche community made up of potential buyers.
In saying that however, I'd argue that none of Hive's communities with an associated layer-2 token has been able to generate demand this way.
Poor distribution and tokenomics exacerbate the problems and they all frustratingly end up at, or grinding to zero.
LEO is the closest community we have to getting this right.
But even they still have a long way to go.
Great post mate, cheers for sharing!
Posted Using LeoFinance Beta
PIZZA Holders sent $PIZZA tips in this post's comments:
stortebeker tipped bitcoinflood (x1)
@stortebeker(1/5) tipped @miriannalis (x1)
You can now send $PIZZA tips in Discord via tip.cc!
I gave up on them long ago. They'd be announced, a price pump, then a fizzle. And too many to keep track of. It felt like another chore in a long list of online chores. Whenever I check HE.. like once in a blue moon... I feel uninspired. I'm sure it's just coz I don't know how to play it. And PIZZA, BEER etc just feels like spam to me.
Oh, I'm so sorry! I didn't mean to spam you full of pizza and beer. In fact, I'll stop it immediately if you want (and think twice about tipping people with it in future).
On the other hand, I expected to hear something regarding LOTUS from you, since I believe at some point you were (or still are?) in charge of organizing the Natural Medicine tribe.
Nooo I don't really mind, it's kinda sweet! Honestly. Spam away!
That's old news. I stepped down as leader for mental health reasons, and despite trying for months, couldn't get anyone to take it on. It ended up all or nothing for me - I'd spent far too much time on it and had a few attacks on how we did things which absolutely broke me after all the effort I'd put in. It was a huge dilemma but I had the support of the whole team and this decision stopped me leaving Hive altogether. I don't think anyone but the core team realised how much work and money I put into it.. kudos to people who can keep that up!
LOTUS in now with @miriannalis who is doing some research before breathing life back onto it for @holos-lotus community.
Oh man! Those are the proper ones: First not wanting to be in charge, then complaining about the way things are done. I'm sorry it ended up like that. And the community... things like this can always come back. Otherwise it was cool while it lasted.
Thank you very much for the mention @riverflow, I'm still in the study phase and it was very interesting to read this post from @stortebeker, I feel that tribe tokens should have a use within the community that makes them circulate and incentivizes the Community to invest in them, that could be the big challenge to avoid that those projects end up becoming dog hairs on the carpet.
I think it is very interesting to study the experience they have had in the LOH Community with their token, meanwhile I continue studying and I am open minded to suggestions 😊
Nice! I'm glad you like my dog-hair analogy, @miriannalis ! 🤓 Though I am not familiar at all with the LOH community or their token.
!PIZZA
Probably because it is the Community of ladies of Hive ☺️