HIVE : Governance token

Governance and the In-Social Currency of the platform

HIVE is the in-game social currency of the open-hive ecosystem. It is the protocol’s governance token and the transactional medium for protocol’s social-graph.

Users can deposit HIVE token into their HiveProfile. Once deposited in the HiveProfile, it is usable across the protocol for the following activities -

  1. Entropy Points which limit user-action - The number of like, comment actions a HiveProfile can perform each epoch are limited based on user's HIVE balance and voting power.

    • During an epoch, a portion of a user's HIVE balance is temporarily locked in proportion to the entropy points spent by liking / commenting on buzzes (on-chain posts) shared by other users on the platform.

    • Users earn BEE tokens based on engagement performed by them on an epoch basis.

    • This model encourages genuine engagement and avoids excessive activity motivated solely by BEE token rewards.

    \begin{equation} Entropy = (PowerMultiplier * VotingPower) + (HiveMultiplier*(HiveBalance)) \end{equation}

  2. Monthly Payments for access to NFTs / content of other users - Every HiveProfile can charge other users on the platform for access to NFTs and content owned by it through tiered subscription model. These subscription payments are denominated in dollar and are automatically settled on a monthly basis in HIVE tokens, available in the user's HiveProfile.

    • The HIVE to dollar exchange rate is dynamically provided by a Time-Weighted Average Price (TWAP) oracle, leveraging the protocol’s HIVE-SUI and SUI-USDC pools.

    • \begin{equation} TWAP_{HIVE-USDC} = \frac{TWAP_{HIVE-SUI} * TWAP_{SUI-USDC}}{c} \end{equation}

  3. Governance participation - Users can deposit HIVE in HiveAsset NFTs which can then be staked for voting power in protocol governance. HIVE, once staked in HiveAssets, cannot be withdrawn from the HiveAsset NFT and can only be transferred to new digital assets built on-top of the HiveAsset NFT using HiveSkinKraftCap capability object.

    • Users earn dSUI (liquid staked SUI) and HIVE as incentives for governance participation based on their voting power, which is determined by:

    VotingPower = \sum_{i=1}^{n} HIVE_i * t_i

where $i$ is the number of HiveAssets locked by the profile for governance, $HIVE$ is the HIVE token locked in each asset and $t$ is the lock duration. 
  1. Economic Expansion via HiveSkinKraftCap Capability - HIVE tokens available with a HiveAsset NFT are transferrable by the owner of the HiveAsset into any new digital assets built on-top of the HiveAsset via leveraging HiveSkinKraftCap Capability. This feature can be used for bootstrapping economiic activity in new games / apps built on top of the platform as per the logic of this new game / application, which can help expand the Hive economy.

Long-Term Sustainability

  • Deflationary Mechanism - Part of the protocol fees charged on subscription payments which are settled in HIVE are burnt, permanently reducing the circulating HIVE supply.

  • Lock-and-Burn Model - The Time-Streamer profile, through recurring auctions, generates SUI rev- enue that is used to add liquidity to the SUI-HIVE AMM pool. The corresponding LP tokens are permanently burned, fostering sustainable liquidity.

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