Quote from: toknormal on Today at 11:12:43 AM

Hex token was launched this year and is currently headed straight to zero. "Features" can't keep a monetary token afloat - they need to actually catalyse some economic activity that's of value to the society.

This is where I depart from many crypto-nerds. They seem to believe that simply by owning a holding in something that should entitle you to a dividend. I think this is because they have legacy banking in their heads where you earn an interest on your holding (or dividend on shares). But this is moronic thinking. They don't take it further to consider where that banking interest or dividend originates. It's only available because it was earned from some additional economic work. The equity you invested in Amazon for example was spent on something which generated growth that came from selling books & PCs to customers. If it did nothing there would be no dividend. If the bank just kept our deposit in reserve instead of using it to monetise construction projects, big tech and big pharma, there would be no interest.

The crypto "staking" idea on the other hand is just a numerical mimicking of this. It takes an existing slice of cake and turns it into two slices, then 4 then 8 etc. But you've still got the same amount of cake. That's what staking is and masternode rewards are simply a version of this as long as they are not deployed in service provision that's demanded by the market. (It's not enough for us to just provide it, the market has to demand and use it).

The only place it works is the Ethereum or Tezos type situation where the tokens themselves are consumed by the blockchain as payment for computing services which generates real commercial demand, even if it's some mad "cryptokitties" thing. Or the tokens can actually backed with some kind of bond by way of a smart contract which turns them into a security.

Cake-slicing dividends = worthless because coin value = fixed marketcap/supply = ever decreasing. Mining on the other hand grows the marketcap simply by increasing competition for the primary supply. Hashrate mediates that competition, it isn't about "securing the network" technologically as much as securing it monetarily. It's the basics and it works.

Actually, I agree with this too! We are making progress here. However, the same can be said of BTC, we buy and hold it and more speculators come for no reason it seems? So, it is seems to work, you don't need to put that coin to work elswhere, although now with wrapped coins we can. We can loan them out and get cash for them, so that kind of does work like the bank too. But I would also caution that when a bank makes a new loan that money is minted on the spot at the branch. So, we should not imply that there is some kind of balance between creditors and debtors cause there isn't. I stick to what I said on HEX, there is a time value of money and HEX embraces that, many have been calling for a collapse since the launch in Nov 2019, it hasn't happened yet to their dismay and I look forward to mentioning from time to time as we try to figure out the impact of tokenomics on various means of generating new supply has on the price.