Speak platform could be huge for HIVE.

LeoFinance
29 days ago
4 Min Read
735 Words

The new token system coming for the Speak platform has the potential to be a game changer for HIVE. More importantly, the distributed IPFS network for content storage may prove to be a huge drawcard for the eco-system.


Image Sourced form This post by @theycallmedan

@theycallmedan outlined the Speak network incentive layer in detail at Hive-Fest, and the highlight for me was the tokenomics of the system. Firstly, a claim-drop for HIVE holders of the mining token LARYNX. I like the 12 month claim-drop setup, and this will mean that over the first year, the mining tokens will end up in the hands of those that want to actively participate in the system. Active miners will claim, and buy more LARYNX. Those active on HIVE but not interested in mining will claim and sell, and those not active will miss their claims.

The way the mining works will be outlined in more detail once the White Paper is released. It appears however that miners will be rewarded with SPEAK tokens, with the rewards dependent on how much LARYNX you have and how many video's you store for the network. Speak tokens then get staked to earn BROCA and participate in governance. BROCA then is like the gas token, with a small fee to upload and participate in the network.

The interesting dynamic comes from the SPEAK token, with it needed to acquire "upgraded" miners (LARYNX) each year. The other unique feature is than none of the payments go directly to individuals. Everything that gets payed to the system goes to a structure called the SIP. The SIP receives all payments for all different aspects of the system, and these funds are locked away forever. The growing pool of 3 different tokens (SPEAK, BROCA and HIVE) just grows in a one way pool (funds in, no way out). Any trades that happen within this pool generate trading fees, just like any other DEX. It is these trading fees that get used to pay out funds as determined by the system.

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A great big sink for HIVE.

The idea of a permanent sink for HIVE is, in my opinion, the genius part of this structure. We all know that HIVE has been lagging in the current market. Having an endlessly growing pool where it gets locked away, and is available as liquidity for SPEAK and BROCA, but can't be withdrawn, will add a level of scarcity and a bullish outlook for HIVE, I believe. Also, distributing the mining token to HIVE holders with a snapshot date to be advised should be bullish.

Personally, I am keen to get involved in this as much as I possibly can. I have started buying HIVE, and have added around 5000 over the last week or so, much of which has been bought with fiat. As the date of the snapshot approaches, I think more people will buy HIVE to boost their claim-drop amounts, and I see this as bullish for HIVE. The best part is that all the HIVE I'm adding gets powered up, and then delegated to @leo.voter to earn a 16% ROI, and more LEO income as a result. Buying HIVE at under 12c seems to be a no-brainer now, earning 16% in LEO tokens, and increasing the claim-drop position for this new eco-system makes it an obvious move.

My goal is to get to Orca level - just over 50K HIVE I think - by the time the snapshot occurs. @taskmaster4450 has covered lots of the details of how the new SPEAK system will work, and I'd encourage you to review his recent posts including this one on the subject for more info and motivation.

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What do you think? Will the SPEAK setup work, will it help reverse the trend for HIVE, will a decentralized video content platform take off? Is the SIP genius, or an overcomplicated, confusing setup that could actually hamper growth by scaring people away?

Personally, I'm more bullish for HIVE than I have been for a while, and definitely positioning myself to participate in the network significantly. I'm not a video content creator, but I can't wait to get involved and look forward to the White Paper.

Let me know in the comments your thoughts.

Cheers,

JK.

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