Why Hive-Engine Tribes need a buy back program
A couple of days ago, the ctp community started a new project called the @ctpchat. Inspired by @leomarkettalk, it aims to bring off chain communication to the blockchain. It's also a way to initiate new people brought to hive to interact with the blockchain through comments.
In addition to that, the team around @jongolson will use this daily chat posts to burn ctp tokens. It will burn the income in ctp and also use the hive from post rewards to buy ctp tokens an then burn them. I believe this is a great idea to stabilize the ctp prices.
The situation of hive-engine tribes has changed
At the beginning hive-engine tribes had a very straight forward business model. There is the inflation and people stake the tokens to get a part of the inflation. As long as enough people wanted to get a part of this inflation, the price would stay quite stable.
Then came the investment tokens and they started to buy and sell the tribe tokens to pay a return to investors. Lately, I see that there is more sell pressure from these investment tokens. This has a rather negative effect on the token prices. It's enough to kind of break the stability of the price.
When you have a balanced market with stable prices. Even a small additional sell pressure can lead to lower prices, especially if it's regular and recurring and the market has a limited liquidity
Hive Engine tokens need to create some buy pressure to stabilize their tokens
The owners of tribe tokens need to create some buy pressure for their tokens to compensate the sell pressure of the investment tokens. Therefore, I believe that projects like @ctpchat are very good for the long term development of the CTP token.
This chat idea is one solution. We see also nice solutions provided by tribes like musicforlife with their VFT lab that allows them to generate income to buy and burn tokens. Then there is also the option to show ads on the front ends.
Whatever solution, I believe that tribe tokens need to have a strategy to create buy pressure for their token to insure a certain price stability.
What do you think?
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▶️ 3Speak
Well...I'm biased LOL
To me, @taskmaster4450 is light years ahead of most when it comes to seeing the layers being built here on the blockchain. So when he has an idea, I will listen LOLOL
And to me, this model just makes sense...It helps with onboarding. It helps with encouragement. And it helps the entire blockchain.
Now with token burns and more sinks being developed. Could be a nice little year for the little tribe that could - CTP ;)
I really like the broad vision that he has about the future and where things could go.
The @ctpchat is a great idea and as you say it's a big plus in the onboarding process and also in the community building. On Telegram you can't upvote people :-).
!ENGAGE 20
ENGAGEtokens.I often visit @leomarkettalk and I can tell from personal experience, this place is a blessing. We are able to crush such huge numbers lately when it comes to engagement. It's vital for the growth of the platform. It's social media so having such an initiative makes sense. @taskmaster4450 hit the right nerve by starting it.
You guys are already doing great things with CTP community and @ctpchat will serve as a value addition for the group and the blockchain.
I will try to acquire more CTPs before you guys start burning 'em tokens. 😁💎
🦁🦁🦁🦁🦁🦁🦁🦁🦁🦁🦁🦁🦁🦁🦁🦁🦁🦁
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The best way to do that is to create growth. Since most HE tribes/communities arent growing, it is no wonder token prices are dropping.
CTP needs to apply the business sense of the community and get more people involved from the outside. That is the recipe for all groups, not just CTP.
Posted Using LeoFinance Beta
That is totally true. If the community grows on a regular basis this is the best solution for a tribe.
A buy back program can in my opinion reinforce the growth of a tribe. If the users know that the owners will bring value to the token, this will increase trust and also the perception of the token will be different. A good perception can improve the mouth to mouth (or post to post) propaganda and indirectly help the tribe to grow.
!ENGAGE 20
ENGAGEtokens.Everybody loves the drama of seeing the prices rise and fall. So much is written about predicting patterns etc... Building a buy pressure for CTP tokens I am all for that :-)
I think that if people know that there is some buy activity thanks to ctpchat, they will more gladly stake tokens and grow their share. I believe this can only be positive, especially in a psychological aspect.
!ENGAGE 20
All of my CTP tokens are staked, in fact 98% of all of my Hive Engine tokens are staked. For me it is not so much the value of the token but what I can do with them as far as power and voting resources go on the Hive blockchain. You would think that everyone would want to not only stake but even delegate to help support their favorite projects 😀
I think that the staking aspect hasn't been discovered by a lot of people on this chain. I believe that with the staking,this is where the fun starts :-)
ENGAGEtokens.Your content has been voted as a part of Encouragement program. Keep up the good work!
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Thanks a lot!
I must say CTP community is doing unique things in a grand way. I am glad that @leomarkettalk could inspire you guys, I have recently joined the party there. It's an amazing place to engage with like minded people. Together, we all are growing by sharing useful info related to Crypto, Tech, Blockchain, Finance & Hive & almost everything else. It helps us to stimulate awesome conversations and have fun everyday.
I am sure you guys are going to rock it. Both @ctpchat & @leomarkettalk will now double the engagement on the platform which is really cool. 😎
And the idea of burning CTP tokens is pure genius. Boosting engagement and the price of CTP in one go. Hitting two birds with a single stone. Mind blowing @achim03. Totally love it. Good luck to all of you guys. I will be happy to hop in whenever I can. 🤞🤞
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Thanks a lot for your great comment. I really like the concept of @leomarkettalk. It is so successfull that sometimes my browser doesn't manage to load all the comments ;-). I hope that we will be able to do something similar with ctpchat.
!ENGAGE 20
You are most welcome @achim03. As I have mentioned this multiple times, you guys are doing a great job with community building. I would love to be a part of it somehow and @ctpchat is a great way to pitch in for outsiders as well.
Haha. We ourselves are facing such issues. But they are great to have. ;) And I am sure you are going to achieve great things with @ctpchat. All the very best!
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ENGAGEtokens.I would like to agree with what Taskmaster said in his comment... All this wouldn't be the problem if there is a growth in tribe members... But, most tribes are "getting" their members from Hive, and Hive itself doesn't have the growth that is needed to keep the balance between buying and selling...
So, there is a need for compensating things... One of the best ways is creating use-cases for tribe tokens, but if that isn't possible, burning tokens through "fees" can be implemented...
I agree with you. The onboarding processus for tribes is simply not really efficient and the learning curve very steep. I believe that a tribe will have more chances to grow organically if it has sound tokenomics which means that they either have good use cases for the tokens or a way to give value to the token through buy backs.
!ENGAGE 20
ENGAGEtokens.The biggest problem I see is that our chat ends up going on discord or telegram. We need this stuff to be on HIVE so people can read about it and see the various conversations going on. We need all communities to start picking up over here and maybe there needs to be a better notification system for people.
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You are definitely not wrong about that. I'm quite active on noise.cash and I had most of my conversations starting there with fellow hivians.
!ENGAGE 20
ENGAGEtokens.Great points there Achim, creating buy pressure for the token is very vital, and the ctpchat is a good example on this, enjoy your day.