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RE: Spknetwork SIP: Potential To Eat Up A Lot Of Hive

in LeoFinance3 months ago

Thanks for sharing your views @taskmaster4450!!! I am really excited about this and it would be so great to see it becoming a reality.

From what we can garner, the SIP is a one-way street. What goes in does not come out.

I have a doubt though, Will SIP not use this locked HIVE for anything? If this locked HIVE is not used, then we can say those coins are out of circulation and they won't be further used to mine more Hive through curation or probably delegation.

But it might as well burn those tokens by sending them to @null. Somebody must own the SIP account, right? Most probably the 3Speak Team.

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Think of the SIP as a liquidity pool like on Ethereum. The money going in for advertising and LARNYX tokens are automatically put into the LP. Users go in and out of the different tokens but they are never removed from the LP by the owner.

The keys for that account are destroyed just like with a null account.

Posted Using LeoFinance Beta

Ah, I got it now. Thank you so much for the explanation.

So nobody will hold any authorization on that account. And it will all be automated. Sounds really cool!

Posted Using LeoFinance Beta

I have no inside knowledge but that is how I would presume it would be. The account needs to be locked and the easiest way to do that is to lose the keys.

That is what Null accounts do.

As for the automation, I do not see someone manually doing the swaps every time enters so that will have a bot that does it.

Posted Using LeoFinance Beta

Yeah, must be a bot handling those transactions. Since they are allowing anyone and everyone to participate. It doesn't make much sense to do it manually.

Once we see things unfold and developments start to happen, maybe then we will get a clear idea of this.

Posted Using LeoFinance Beta