Pancakeswap’s New Affiliate Program To Reward Cake Holders Woke An Old Idea For Hive's DHF In Me
There's a famous saying “if you can't beat them, join them”. The problem is that most people approach this saying in its raw form and that form really just sounds like “accepting defeat” and where's the fun in that right?
Reality is, this saying proposes an idea for winning with a competitor rather than losing to it and there are numerous ways to do this. Facebook knew it couldn't beat WhatsApp and Instagram, so it did what? Bought it.
That's kind of like “Joining Them” and so many businessmen have been doing this for years. I mean, have you looked at Bernard Arnault's Empire?
A little birdie told me it's full of competitors he bought out. He kept taking over from the inside and guess what? Hive can do this too, become a major stakeholder in key crypto projects.
Hive has been investing in internal developments for so long, so far that's all just been what it is that all of us can see, so, I propose, it's time to start buying out the competition.
I know, I know, it sounds crazy, but hear me out real quick, this can bring more revenue and exposure to Hive and all we have to do is leverage our “debt”, bleed our ecosystem a little bit for this, strategically of course.
Before I say it just how I've thought of it, here's what is going on with Pancakeswap:
Decentralized exchange PancakeSwap is planning an affiliate model that will allow developers to fork its code and float a version of the platform on other blockchains, head developer Chef Mochi told CoinDesk in a Telegram chat.
“With the increasing number of blockchains and the growing interest in DeFi, the affiliate initiative aims to leverage PancakeSwap’s user-friendly interface and multichain capabilities to facilitate broader access and opportunity within the DeFi ecosystem,” Chef Mochi said.
“By open-sourcing the PancakeSwap DEX, developers and protocols can leverage its technical foundation to build their own DEX effortlessly, accelerating innovation without starting from scratch,” they added.
Affiliates will let developers from several other blockchains and layer-2 networks offer a version of PancakeSwap where the exchange is not officially offered. They will receive incentives and technical support from PancakeSwap in return.
CAKE holders will benefit from the success of affiliate forks as they will receive native DEX tokens from affiliates, and a portion of the trading fee revenue will be allocated to burning – a term for permanently removing – CAKE and thus reducing supply.
I don't need magic glasses to say that if things go as planned indeed and Pancakeswap can keep dreaming up developments like this, Cake will be a very valuable asset in the long term because it's effectively sustained by external revenue.
The importance of this for any ecosystem cannot be overstated. It's literally evident in country economies, the more value that flows from foreign countries to one, the stronger that nation's economy becomes.
This is the direction every space looking to be sustainable and valuable should be building towards, external income to nullify inflation and internal market pressures.
Now that we've got that cleared, how can Hive approach this? Given the obvious of not being in any position to offer a service as Pancakeswap?
Great question. As my title may have already sold me out, the idea is to leverage the Hive Fund, or DHF as it's more commonly called. For those who don't know, this is basically the funds sitting in the @hive.fund account.
And last time I checked that account, I felt rich given that my vote counts to control those funds.
How should we leverage this?
The same way we do with internal projects, but we should be more fancier with our approach.
Of course, this might require some edges of centralization for it to work out smoothly but not a big deal.
We should launch a “Hive Accelerator Program” which will act as a Decentralized VC fund and Project Promotion Platform for external crypto projects.
Surely, this will require intensive research into how we can get into the right rooms where projects come in to seek funding and promotions and all that to get on their feet.
Having this program in place enables us to fund external projects in exchange for a percentage of their token supply.
Just go look at the numbers when it comes to crypto VC funds, this is what is making Binance so rich and powerful, it's funding projects and earning external revenue.
So, we dump our debts on ourselves to fund these external projects that we find potentials in, as things move to deployment phases and Hive receives those % share of their supply, we can vote to either dump the tokens and buy up hive to distribute to Hive stakeholders and probably allocate some value back into the DHF.
As for the promotions part, this was really a secondary thought where we could develop a task platform where Hive users will be given several tasks to promote projects in our accelerator program in exchange for a percentage of the supply we'd receive.
Someone would wonder, why do this?
Exposure is important for any new project to grow, and given that revenue would go to Hive stakeholders, small accounts may not get so much.
The task platform is an avenue for these small accounts to offer their time up as they couldn't offer their money to have larger stakes, promote these projects and earn points that will earn them a percentage of the supply of these project tokens allocated to the task platform.
This is all surface thoughts, but I'm confident it's something we can build and promote to the crypto world.
Instead of clinging on the “decentralized blogging platform” we can promote our Accelerator Program for crypto projects.
I almost forgot, this could help bring more developers to Hive, obviously, and also create more bridges between Hive and other blockchain tokens, that's for sure.
I would tag some people I would think can push this to greatness, but I'm not one to tag, so do Hive a favor and reblog this or share the link to who you know would be interested in helping Hive get this done.
The DHF doesn't need to fund just Hive-based projects, it just needs to bring value back to Hive and this is one of the ways we can achieve that.
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I love the outside-the-box thinking here.
I like the idea of a DHF VC fund.
Personally, though, I think the Hive VCs should be finding Hive-related projects.
The thing that would be different from current DHF funding would be the type of projects being funded.
Traditional VCs only fund projects with HUGE upside potential. And they only expect about 1 in 10 to succeed.
Historically, the DHF has only funded projects that have a high probability of success.
Don’t get me wrong. I’m not suggesting finding any and all projects.
Rather, I’m suggesting some serious swing-for-the-fences brainstorming. And then pursue several of the best ideas, knowing you’ll be happy if just one succeeds.
The pattern I've noticed with Hive-based projects tho is that majority, if not all, tend to all fight over the same small Hive pie of users therefore bringing little to no external value - which is largely needed for the ecosystem flourish.
The idea here isn't to stop funding these internal projects, but a combination.
If you look at Celestia Backers, you'd notice that all of them are in profit, there's a reason every established entity opts for this, even cointelegraph runs an investment fund of this nature.
Surely not all projects would be as Celestia, but the upside should be greater, all things considered(revenue, developer interest in Hive, more dex/cex listings, increased bridges to other networks, mass exposure, etc.)
We have to also look at how this could put Hive in the news more often, because the media sure loves to talk about what investment fund holds this or that stake and all the other speculations and hype surrounding the revenue generated.
It's definitely not something we should jump at carelessly, we have to be strategic about it and should expect to gain good relationships with the rest of the crypto space.
I’m not talking about small-minded projects.
A traditional VC would not even begin to think of funding a project focused on a small addressable target market.
What I’m referring to is high-potential projects that build on Hive, help others build on Hive, or have the potential to bring LOTS of folks to Hive.
If it’s purely investment but not built on or building on Hive, I doubt it would get the needed support. And, fwiw, the HBD Stabilizer is already making millions per year for the DHF. We don’t need money, imho, we need some genuine risk-taking vision — and that generally doesn’t happen via consensus-based decentralized decision making.
In any event, keep thinking outside-the-box. We need much more of that!