ALIVE Market - What Is Going On?
In this post I talk about what is going on in the ALIVE market on Hive-engine, the massive ups and downs, and also plans ahead for creating support for the market floor and long term stabilisation, enjoy.
Made in Desygner
Hi there and welcome to my blog, my name is Erik Gustafsson and I go by the handle @flaxz.
ALIVE Market - What Is Going On?
So if you have been following the discussion in the We Are Alive Discord then much of this is no news to you, but if not then it might be.
Ever since the start of the We Are Alive Tribe I first built and then maintained a buy wall at the price of 0.02 Hive per ALIVE, and promised to do my best to keep maintaining it, which I have done for a very long time and even added more to it as well.
Then on November 28 one account dumped almost 5k ALIVE in one action, which wiped the buy wall out, that same account had just a few days prior dumped another about 5k ALIVE driving the price down to the buy wall.
On November 28 I held a giveaway in our Discord to call others for help in restoring the buy wall, which we did as we manged to put up buy orders for a total of 8k ALIVE.
2 weeks later I called again with another giveaway for more buy orders to the buy wall as selling into the buy wall had eaten up a lot, that time we got one more order for 1k ALIVE.
Some time after this someone bought up a lot of the standing sell orders for ALIVE raising the roof, there was no raising of the floor however, and people kept selling into the buy wall rather than selling with standing sell orders despite the big gap.
The discussion at that point in our Discord concluded that I should not pay people to put up any more standing buy orders to the buy wall, but that the market needed to figure this out.
At this point I had run out of options to raise the funds myself for maintaining the buy wall, I could have kept paying others for some time to put up buy orders, but as the last giveaway showed there was no longer much interest in doing that.
This brings us to what a buy wall really is, it is a shock absorber in case there are big dumps, it is not there to be the front buy order that continuously buys up all market sales, it only works if it has to be used temporarily, market demand has to kick in after it was needed and eat up those sales.
This is why a few days ago the last part of the buy wall was eaten up by sales, and the price is now somewhere between 0.0155 to 0.02 Hive.
Screenshot from Tribaldex
At the same time the price of Hive has also been a major factor in people wanting to sell, and the fact that it took this long to drop below the buy wall when almost all other tokens dropped a lot is a big sign of stregnth.
What Now?
I don't know how the market will develop now, my guess is that the floor could drop some more, but this is all up to the market.
What I do know is that demand has to be the factor behind support for a floor for our token, and that this is a good time for buyers to make some bargains.
How Do We Increase Demand?
So demand right now is driven by a few factors.
- Stake as a tribe token to use for curation, post rewards are split 50/50 between authors/curators, and we have a linear rewards curve, and we have had this since our tribe launched.
- Stake to be able to use our tipping bot with the
!ALIVEcomment command. - Stake to earn passive income of BRO and PGM tokens every day, which we pay out to ALIVE stakeholders.
That is about it for the financial aspect of things, and point 2 and 3 already have a great and most importantly sustainable set up, and they are contributing to increase demand quite a lot.
Proposal To Prolong Unstaking To 4 Weeks
One thing that we could do and that will help a lot is to increase the unstaking window from 1 week to 4 weeks.
This will make it more attractive to long term investors to stake, staking gets a lot more stable, and any unstaking to sell takes longer time and won't make the market as volatile.
My proposal is therefore that we make this change on January 1 2021, any unstaking started before that runs for a week even if completed after that date.
Alive And Thriving
We have so far recruited a core team for #aliveandthriving and will quite soon start curating with @aliveandthriving.
For this purpose @aliveprojects will delegate a big amount of Alive Power, and I myself will also do so with my own @flaxz.alive account, and others might also put in more as well.
This means that the active stake will be more decentralized, I go through every post in the tribe each day to vote and leave a few comments with my @flaxz.alive account.
With this new project, and the fact that the number of posts published in our tribe makes it very hard for me to go through all posts, it means that voting will be much more spread out accross more accounts and people behind them.
We have worked a lot to spread out the active stake already, but with this it will be much more important for each persons earnings of ALIVE tokens to actually build a stake of their own, remember that 50% of post rewards goes to curators, so your own stake is paramount to keep earning a good amount of ALIVE tokens.
Diesel Pool
Hive-engine has a feature called Diesel Pool, to set up a full featured pool will cost 2000 BEE, so this is not something we can do in the short term, but in the long term I think we need it.
With a Diesel Pool for ALIVE we can reward people for adding liquidity to the market, and by that means adding as many buy orders as sell orders.
This creates market stability since if the market goes out of the small spread in the Diesel Pool then there is profits to be made on arbitrage, kind of like it is for HBD for example.
So this is something I think we should plan for, but not in the short term but in the next 3 to 6 months or thereabout.
What Do You Think?
So please add your feedback about this, what do you think?
Thank You!
Thank you very much for reading this post and I hope you liked it, leave your thoughts in the coments below, and ...
Stay Awesome!
Sincerely, Erik Gustafsson
This is my own personal opinion, do your own research before investing, and seek legal counsel if uncertain.
