What is Hive?
The Hive token or HIVE is one of the main tokens powering the Hive network. The latter is a Web3 information sharing platform where users are incentivized for contribution and participation. These incentives come in the form of HIVE. Contributions can vary from photos and videos to short and long blog posts.
Hive tokens can be earned by interacting with content on the Hive network such as liking, sharing, and commenting on it. Curating - upvoting or downvoting posts - is another way to earn HIVE tokens.
Network participants can easily buy, sell, and trade Hive tokens. It’s available on decentralized and centralized exchanges. Moreover, HIVE can be staked. Hive Power or HP is the staked form of the Hive token which can show how much power and voting influence a single user holds. It can increase content votes, curations rewards, and Resource Credits (RC). The latter is a substitute for transaction fees. Staking your Hive coins will grant you increased voting power.
The other native token is the Hive Backed Dollar or HBD which is pegged to the US Dollar on a 1:1 ratio. This token can be traded, exchanged, and converted into the Hive token. The conversion takes around 3.5 days to be completed. Holders who deposit their HIVE into a Hive-based savings account will receive interest payments every month. As of July 2022, there is an APR of 20% on all HBD savings.
Users who hold STEEM tokens can exchange them for Hive tokens.
There is no official max cap of HIVE tokens. This means that it won’t become scarce due to its limited supply.
Hive tokens have a decreasing inflation mechanism where the inflation rate is decreased per 250,000 blocks until a rate of 0,95% is reached.
Since Hive is a cryptocurrency, its price tends to fluctuate. In order to make an informed purchase decision, have a look at the Hive price history and the current Hive price on the graph above.
What are the Main Features of Hive?
The Hive crypto project is a type of social media platform powered by blockchain technologies. It was hard-forked from Steem. Hive has eliminated the need for transaction fees through the implementation of an exclusive self-replenishing Resource Credit model. This means that instead of transaction fees, Resource Credits are deducted.
The Hive ecosystem consists of various APIs, front-ends, and dApps centered around data sharing. There are more than 126 projects created on Hive.
As discussed in the What is Hive section, HIVE is the official cryptocurrency of the platform.
New Hive tokens are constantly produced on the condition that a new block is produced. These new tokens are distributed as follows:
- 65% - reward pool;
- 15% - HP stakeholders;
- 10% - witnesses;
- 10% - Decentralized Hive Fund (DHF).
Hive is based on a Delegated-Proof-of-Stake (DPoS) consensus mechanism and Graphene technology. DPoS is the backbone of Hive governance as it enables stake-weighted voting in determining witnesses a.k.a. block producers. These witnesses accept or reject proposals for modifying the 1st layer protocol without interfering with the 2nd layer protocol.
Before diving into the project, please make sure to do proper research. You can start by checking out the current Hive price and other details on the graph above.
Who Developed Hive?
The Hive crypto project was launched by Hive Blockchain Technologies. The idea behind the project was born in February of 2020 after Steemit Inc was sold to Justin Sun. Hive was also heavily influenced by a 51% attack on Steemit. Around that time, Hive was hard-forked from the Steem blockchain. It was officially introduced in March 2020.
