Preface

Against the background of the rapid development of the digital economy, blockchain technology is gradually becoming the core of various industries' transformation. As a decentralized social trading platform, HIVE blockchain aims to provide users with an open and transparent environment, allowing users to freely share content, and enabling communities to manage voting and rewards more fairly, promoting the trading and management of digital assets.

What is HIVE?

Hive is a blockchain platform born in March 2020, the result of a hard fork of the Steem blockchain. It plays a bridging role, connecting the worlds of Web 2.0 and Web 3.0. With its fast transaction processing speed and zero transaction fees within a certain limit, Hive has become an ideal choice for various applications, including social media platforms that provide tokenized incentives for content creators, interactive blockchain games, and identity management systems. As an open-source blockchain, Hive focuses on enhancing its scalability through Layer 2 sidechains while maintaining the universality of the Layer 1 blockchain to ensure data distribution integrity.

Within the ecosystem of HIVE, users can deeply experience the community network formed by applications and services, explore the huge potential of blockchain technology. Hive has nurtured a community where members are not only users of the network, but also owners of the network. They can securely share content, connect with the platform, and enjoy fair value distribution. This unique model allows sponsors to interact directly with the community and artists, eliminating the intervention of intermediaries, and establishing a more transparent and direct connection.

How does HIVE work?

Hive blockchain, with its speed, scalability, security, and large storage capacity as its core advantages, provides a powerful platform specifically for Web 3.0 and decentralized community media applications (DApps). This network has a forward-looking bandwidth and storage system that can securely store a large amount of data and access this data through a tokenization mechanism based on time. This enables developers to easily build, deploy, and operate DApps and flexibly use Hive's open-source code to create new public and private networks.

One prominent feature of Hive is its unique Delegated Proof of Stake (DPoS) consensus mechanism, which utilizes the power of human subjectivity to maintain high levels of content quality, thus driving the prosperity of the creative economy. On this platform, users can vote for content creators through HIVE and HBD tokens, fostering a community that encourages original content. This voting process lasts for 7 days, ensuring a dynamic and engaging user experience. The decentralized nature of the Hive network is based on the DPoS consensus mechanism, ensuring a secure and transparent financial ecosystem. In this architecture, delegates/witnesses represent investors to validate transactions and create new blocks on the blockchain, thereby enhancing the decentralized nature of the network.

HIVE token

HIVE is the native cryptocurrency of the Hive network and is used in various ways within the Hive ecosystem. Here are some key use cases:

• Content Creation and Rewards: HIVE is used to reward users for creating and curating content, including social media posts, comments, and other digital content. Users can earn HIVE and Hive Backed Dollar (HBD) based on the engagement and upvotes they receive from the community.
• Decentralized social media: HIVE is used to support social media platforms like PeakD, allowing users to earn HIVE by creating and sharing content. The platform offers time-limited monetized rewards, where users can earn HIVE within a maximum of 7 days after publishing their content.
• Staking and Influence: HIVE can be converted into Hive Power (HP), which is used to measure the user's influence in the network. Users with more Hive Power have a greater impact on the reward allocation for posts and comments. HP cannot be used as a medium of exchange, but can be delegated to witnesses.
• Trading and Exchange: Users can easily send HIVE to each other, for example, to tip or donate to their favorite content creators. HIVE 1 also rewards active participants, and HIVE can also be traded and exchanged with other cryptocurrencies on various exchanges.
• Decentralized Finance (DeFi) and Gaming: Hive supports a range of decentralized applications, including games, non-fungible tokens (NFTs), and DeFi projects, which operate on the Hive network.

HIVE Stablecoin

In addition to HIVE, another major cryptocurrency on the Hive network is Hive Backed Dollar, abbreviated as HBD. It is a stablecoin that users can easily exchange for HIVE on decentralized exchanges. It is pegged 1:1 to the US dollar, but please note that it does not have legal reserves to support HBD. This stablecoin heavily relies on arbitrageurs, which makes its volatility slightly higher compared to Tether (with legal reserves) and TerraUSD (with controlled supply algorithm).

HBD has a built-in security mechanism called the haircut rule, which ensures that the debt ratio of HBD to HIVE is always below 30%. When the debt ratio is greater than or equal to 30%, the haircut rule is triggered, which stops the production of HBD and breaks the peg to 1 USD. The conversion from HBD to HIVE will return slightly less than the value of 1 USD.

This rule has happened several times in the past and has been proven to effectively prevent excessive debt while maintaining a healthy price for HIVE and HBD tokens.

Token Economics

HIVE is an inflationary cryptocurrency, which means there are currently no rules limiting the supply of HIVE coins.

Token Allocation

Newly generated HIVE from inflation will be released as planned and distributed as follows:

• 65% is evenly distributed among content creators and content curators (people who actively engage with the content through likes, comments, and shares)
• 15% given to HP stakers
• 10% to witnesses
• 10% is deposited into the decentralized Hive Fund, which is the network's treasury to fund community proposals

Inflation rate

The inflation rate of HIVE is about 7.5% per year, and the inflation rate drops by 0.01% every 250,000 blocks, resulting in a decrease of 0.5% per year. The decrease will eventually stop at 0.95%. According to the Hive whitepaper, HIVE inflation refers to the reward system. Although most investors believe that inflation is not a good thing, in the Hive ecosystem, it is highly encouraged to re-stake the HIVE rewards.

How does it affect the financial market

The emergence of HIVE in the financial sector represents a significant shift towards a more inclusive and democratic financial ecosystem. Its free trading model is an innovative breakthrough with the potential to redefine the financial transaction model of the digital age. HIVE's emphasis on decentralization aligns with the growing trend in the financial sector, which is gradually tilting towards a more transparent, user-centric, and open financial system.

By creating a platform that allows users to have independent ownership and control of the network, promoting more equitable value distribution, establishing a community where financial interactions are no longer controlled by centralized entities, but rather determined by collective contributions and participation of user groups, paving the way for a more fair financial future, bringing together technology and community to create a more open and democratic financial world.

Summary

Hive (HIVE) is a decentralized content sharing platform designed to reward active participants. The platform operates on Delegated Proof of Stake (DPoS) protocol, where users can select witnesses to validate transactions and generate new blocks. Hive is specifically designed for community media DApps, focusing on speed, security, and high-capacity storage. Its unique Proof of Brain protocol aims to incentivize the creation of high-quality content. Users can easily send HIVE on the platform, and HIVE also exists in a non-liquid form called Hive Power (HP), which users can delegate to witnesses. The Hive network has also introduced a stablecoin called Hive Backed Dollar (HBD), pegged to the US dollar, further enhancing the platform's financial stability.

Gate.io has officially launched HIVE and opened HIVE/USDT perpetual contract trading pair.

Trading:https://www.gate.io/en/futures/USDT/HIVE_USDT