Hi guys, lucky ali this side. Welcome back to my new post. Sometimes you might be thinking that from where the hive reward is coming from, for example, if you have ever gotten an upvote on your comment or post, you may think that the curator is rewarding you, but it is not a complete statement because the reward is coming from the decentralized system of Hive blockchain. So here we are going to talk about it in detail. You can also see that there are no paid partnerships that provide funding to Hive, and also, there is no advertisement running on Hive like Google Adsense, so there is a big question about where the hell it is coming from. Let me break it down for you folks.
Web 2 platforms sell users' data
Talking about web 2 social media platforms like Facebook, Instagram, and others: there you can see that they are selling users' data, also earning from the ads and paid reviews, and from that earning, you are getting nothing; instead, you are losing your personal information and data. Still, people are crazy for those social media networks because they don't know the real power of Web 3 platforms like Hive and Leo. Hive does not rely on selling user data, and it is not even asking for your name, so KYC is very far away from Hive. Talking about ads, then you can see there is not even single ad running on Hive.
This is all about blockchain economics, and this is the most important feature that newbies cannot understand properly, but later on, when they use and experience Hive in detail, they can understand where the money is coming from and the system of blockchain economies. If you are new, then this is very important information for you, so do not miss this information now. Let's understand it more.
There is no hidden treasury or ad earnings on Hive
So the hive reward pool is there, and there is a dynamic pot. And do you know? This is the pot of tokens which created every year using inflation. Now talking about a supply, then Bitcoin has a limited and fixed supply, but Hive has a different mechanism; HIVE mints a small percentage every year, and new tokens are generated. Now coming back to the distribution that it is not distributed to random users but directly into the different bins. Now, from that big portion go to hive witnesses and another for the DHF, which is a decentralised hive fund and DHF is used for the proposals and development on hive and Biggest share is dedicated to hive reward pool and this reward pool is playing important role To reward The content creators on hive who creating, engaging, and curating on hive and running the hive economy.
Talking about the inflation rate, the inflation rate in 2025 is lower than the previous years. It is not like giving a lot of rewards for any particular system, but it ensures sustainability. Because it is important to keep hive sustainability, and it is also important to reward Contributors so that the hive can all live and thrive. 50% reward goes to the curators and 50% reward goes to the author. No hidden treasury or money is coming from the advertisement, but there is a protocol called a decentralised protocol that works behind it. The payout you are getting is the redistribution of the hive, and that hive has already been minted.
Conclusion
So it is all about decentralization; there is no middleman working behind it. So there is no magic, it's economics and maths, and this is my explanation. I hope you understand it. Please share this article and also leave a comment below. Have a good day.
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Hi I am lucky ali from gujarat, india. I am a crypto enthusiast, blogger, and SEO developer. You can find me on hive, twitter and discord (Lucky Ali#6343). Sharing is caring. Thank you, hive family ♥ |
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