Usually you wouldn't really care when people delegate or undelegate from projects, but since this is my own I just wanted to give people a reason to it and maybe at the same time a reminder on how things work with the project's funding for newer readers or returning ones.
I've been delegating anywhere between 100k to 150k to @zingtoken for roughly 2 years now, since the token launched. This was one of the main ways to crowdfund development of the project.
Back then Hive was doing a lot better sitting at 30-35cents if I recall correctly and Bitcoin and Ethereum were making new waves of all time highs so hopes were that Hive would follow suit, which it unfortunately didn't. We always wanted to add another, more direct way to help crowdfund the game but didn't wanna ask people for their liquid crypto until we were sure the project was going to work and was going to be finished. This depended on some of our Hive devs remaining with the project so we didn't have to look for new ones who'd need to catch up on things and more importantly, our game dev to see things through no matter how many complicated things I threw at him to add to the game.
Luckily after a year or so things looked more stable in terms of development and our devs were going to be around and that hasn't changed, thus we launched the sale of our Alpha Vials, a.k.a. starter "packs". (It's important to note here that Holozing is not a Trading Card game, although cards will be used in one way or another and trading will be possible, the gameplay isn't going to happen with cards on a board like what's expected from TCG's)
[Artwork by @craizuss]
Okay, so we've now gone through two of the methods to fund development, delegating hive power to @zingtoken and buying alpha vials. Both of these options give crowdfunders zing tokens as rewards in exchange for their donations. We've adjusted which one gives more over time to make things fair based on the value of Hive over time (delegations) and the cost of alpha vials being in USD rather than Hive.
Other ways people could have gotten involved in Zing are:
Adding liquidity to our Hive-engine Liquidity pool.
Staking Zing.
Earning Achievements.
(indirectly): posting in our community and using the hive rewards to swap for zing
Okay, so this is quite clear at this point that we've mainly relied on Hive to fund development for the project and we hope that over time when the game is launched and development continues it will make up for the sellpressure of Hive we've attributed to.
Now back to the title of this post.
While delegations help fund the project, currently the price of zing is below the price of earning curation rewards from holding Hive Power yourself. Meaning, if you simply curate with your HP and don't vote on stuff that's going to get downvoted, on average you earn about 8.5% APR. Due to Zing's lower price at this point, delegating your HP to zingtoken (which means you won't get curation rewards from the delegated amounts (however you will still get Hive Power APR for holding HP (~3%))) the amount of Zing and it's value in terms of Hive is about 3% lower than if you simply curated. This means that it is worth more to just curate and then use those rewards to buy zing as you'd get more zing for your hive than delegating.
It's important to also note that undelegating takes 5 days for your HP to reach back into your account, so by undelegating now and then curating with the HP you receive back would take another 7 days until the additional curation rewards start coming in.
Anyway, so while my plans to undelegate may take some future crowdfunding value away from the project, I plan on buying zing directly with the extra curation rewards while also continuing to purchase alpha vials since they're coming to an end here shortly. By buying zing from the market, I may be able to increase the price of it so it'd give the delegators more value back compared to what it does now.
Anyway, that's pretty much it, I plan on delegating to @ocdb in the meantime so I get more daily liquid Hive to spend on Zing and vials!
And no, it's not because I've "lost faith" in the project, which is probably the main reason to writing this post that I wanna make clear. :D
If you check out a few of my accounts, like this one, you can see that I have quite a bit of Zing on hive-engine and keep buying more!
Thanks for reading!
