Hive has been around since March 20, 2020. Let’s take a look how we are doing when it comes to burning HIVE.

The initial option that was built in for burning HIVE was the promote option. On the old chain there was a promote section tab, that was mainly not used by almost anyone. Now this tab is no longer on Hive.Blog so the initial idea for burning HIVE is not available now.

Peakd have developed their own model for promotion and burning HIVE and it seems that it is used a bit. Not on massive scale though, but yet a start.

Other options for burning HIVE is the cost for creating a community (3HIVE) and making proposals. Another thing that burns some small amounts of Hive is the tipping option also provide by Peakd. A small amount of the tip is burned in order to prevent abuser.

On the old chain there were a few initiatives for burning tokens, out of which the most notable the @burnpost experiment from @smooth. This initiative is not running now on Hive.

Finally, authors can set @null as beneficiary to their posts and burn Hive in that way.

The period that we will be looking here is March 21 till January 8, 2021

Transfers to @null account

Here is a breakdown by date for HIVE transferred to null.

A total of 11k HIVE transferred to @null account in the period.

From the quick analysis I did on who is transferring HIVE to null, most of these cases are Peakd promotions and proposals. There is a cost for making proposals. I’m not totally familiar with this but there is like 100 HIVE cost for proposal, and at other times 50 or even 25 HIVE. I guess it depends on the value of the proposal.

On average in the period there is 1k to 2k HIVE sent to null per month.

Setting @null as beneficiary

Another way for burning HIVE is setting @null as beneficiary. For the not so familiar what this means, it basically sent the rewards for that post to @null, burning them.

Here is the chart.

A total of 7.1k HIVE transferred to @null as beneficiary account. This chart is pretty much random. Usually when some of the popular large stakeholders set @null as beneficiary, it creates some significant amounts sent to null from those rewards.

Note: For simplicity I have converted HBD and VEST rewards to HIVE, so the numbers of beneficiaries are approximate and not accurate.

Total HIVE Burned in the period: 17k HIVE

If we consider the HIVE inflation with around 2 million new tokens created per month (depending on HBD prinitng), the sum above is very small. There is some effort for implementing systematic solution to bunr HIVE, like the way Peakd is doing it, but this has obviously not scaled.

Top 15 Users that Burned HIVE in the period Oct-Dec, 2020

Here is the table for top 15 users that burned HIVE in the period.

The list is a compilation from transfers to null and setting null as beneficiary. HBD converted to HIVE as well.

@splinterlands are first here, probably setting up @null as beneficiary for most of there posts. @memehub and @roelandp follows with proposals costs.

The top users that burned HIVE is a mix from null as beneficiary on posts and the cost for creating proposals for the dev fund.

---

Some thoughts on the burning

The amount of HIVE burned in the period is very small. Promotions, creating communities and creating proposals for the DHF fund are the ways that burns HIVE directly. Setting null as beneficiary on posts also burns some HIVE.

Burning HIVE is mainly about reducing inflation. Inflation is a long debated topic here and the point is that it can be easily offset by growth and demand. The official inflation is around 7.5% now but as we have seen the HBD conversiosn are almost doubling it. 24M more HIVE created per year vs few ten thousands burnt.

The above methods are not creating any significant amounts of HIVE burnt. Some other options are implementing ads and burn HIVE from the add revenue on the main frontends like Peakd, Hive.Blog or Ecency.

Another interesting method that now is appearing is locking/burning HIVE from Hive based projects. 3Speak is paving the way for this with their tokenomics and SIP pool. The idea of ownerless pools is appearing in some other DeFi projects, where funds are locked into a liquidity pools forever.
If more of the apps build on HIVE create something similar this can create some demand for the token and create a base floor value for it, creating a long term sustainability for the project.

All the best @dalz

Posted Using LeoFinance ^Beta