Positive Aspects Of Inflation
When it comes to Crypto projects, one of the most important aspects of success is that of tokenomics. This incorporates the “minting” of new coins via an inflationary-based model. Yes, much to the surprise of some, even Bitcoin is an inflationary-based asset. This will continue to be the case until approximately 2140. This is when the last Bitcoin will be mined, or at least is expected to be, according to approximate block times.
It is important to note that it is this very dynamic that provides incentivization to mine, not only Bitcoin but all Proof-of-Work blockchain-based coins. The same is true of Proof-of-stake blockchain-based coins. Even though the consensus may be different, both are incentivized, and made possible by an inflationary model. Essentially, a project with well-thought-out and sound tokenomics is able to positively harness the aspect of inflation.
This actually plays a very important role in ensuring a project’s success and longevity. Careless structuring in terms of tokenomics and inflationary models can be destructive, even to a brilliant idea. This is where identifying projects with solid tokenomics and communities is essential if you are looking to position yourself for profitability. There are many ways to position oneself, as blockchain enables and encourages creativity.
This is where the “incentivized economy” exists and operates, and extends beyond traditional PoW and PoS models and ideas. In many ways, content creators on Hive are essentially “mining” HIVE and second-layer tokens via the creation of both long and short-form content. Even though there is the aspect of traditional staking, there is also the opportunity of realizing inflationary-based rewards through content creation and engagement.
Hive is a great example of where this approach is actually working, as well as providing incentives for content creators to position themselves accordingly. This is essentially how the incentivized economy operates, and there are numerous expressions and opportunities out there! It’s all about positioning oneself in relation to one’s strengths, abilities, and even daily routines.
In other words, find ways to incorporate these models into your daily activities and hobbies. The new economy is one that will extend beyond the typical transactions of trade. Value is now beginning to exist beyond goods and services, and therefore becomes accessible to the everyday man on the street. In many ways, the rules that govern and undergird the transactional aspect of economic activity are changing.
Those who understand this, and begin to position themselves accordingly, are the ones who are eventually going to benefit greatly from this inevitable shift. It’s like catching a wave… you can’t begin positioning yourself once the wave is upon you. A surfer sees the swell coming through, and so quickly begins to position himself for when the wave begins to break. It’s definitely time for a similar readjustment and positioning.
WEB3 is busy creating so many opportunities, especially via the avenue of social media and other activity and action-based models. The principle of inflation, coupled with blockchain, enables the average person to enjoy the benefits of inflation. This is something that has previously only benefited a rather select group of individuals. It’s time to begin leveraging that which is now within your reach. Catch you in the next one!