The Decentralized Hive Fund DHF Keeps Growing | Data On DHF Balance And Payouts
As a decentralized ecosystem the Decentralized Hive Fund (DHF) plays a vital role for Hive. Being able to self fund from a DAO excludes the need for VCs therefor pushing the decentralization of the network even more. The DHF has been around for a while but ever since the HF that created Hive its role has become much more important since there no central entity to do the heavy lifting and push the development.
The DHF has a balance of 19M HBD now. It holds a lot of HIVE as well but those are not available for use. Since the creation of the Hive blockchain in March 2020, the funds under management in the DHF has gowned from under 1M HBD to 19M HBD at this moment.
Let’s take a look at the data.
The account that holds the DHF funds is the @hive.fund. Only 1% of the HBD holdings in this account are available for daily payouts and funding. At the moment this budget is 190k HBD per day. Projects can create proposals for funding and if they are voted out from the community, they will start receiving funds.
There is only one way funds can exit this account and that is for proposal who have been voted from the community to get the funds. When it comes to funding the DHF, or how funds are added to the DHF there is more than one way.
Funds added to the DHF:
- 10% share of the inflation
- Ninja mined HIVE conversions to HBD
- HBD transfers to the DHF
- HIVE transfers to the DHF
- DHF as posts beneficiary
The core source of funding for the DHF is the inflation.
In recent history a few more significant sources for funding were added. The most significant would be the HIVE that was transferred from Steemit Inc to the DHF. At the time of the fork in March 2020, there was more than 83M HIVE put in the DHF. Later with another HF in October 2020, this HIVE was put in a slow conversion mode with 0.05% of it being converted to HBD daily, or full conversion for a period of 5.5 years. This to avoid price shocks.
Another significant source of funds are the transfers to the DHF that are made by the @hbdstabilizer.
This account is receiving fundings for the purpose of stabilizing the HBD. It trades HBD or HIVE on the internal market to maintain the peg and then it sends the funds back to the DHF. Depending on the price of the HBD it sends back HBD or HIVE. When HIVE is sent to the DHF it is being instantly converted to HBD at the feed price, making these funds available for use. The stabilizer sends and receive funds, but overall, it has been a net positive with more than 1.6M HBD added to the DHF in this way.
At the end there are the funds from post beneficiary. Whenever someone makes a post and set the DHF as a beneficiary, the rewards are paid to the DHF adding more funds to it.
Let’s check the charts.
Funds From Inflation
As mentioned, 10% of the inflation goes to the DHF. Here is the chart.
The DHF started with operation at the end of August 2019, and started receiving funds from then.
The amount of HBD added in this way is corelated with the HIVE price. 10% in HBD is not the same when HIVE is 2$ or when it is 10 cents. We can see the spikes in the chart, those are basically whenever the HIVE price went up. We can notice the increase in the amount of HBD at the end of 2021, when the HIVE price was higher. In total a 4.5M HBD was added in this way, with around 4k HBD added daily in the last period.
Funds From Ninja Mined HIVE Conversions
Here is the chart for the HBD added in this way.
We can notice this funding started at the end of October 2020. This is when the HF happened that enabled this. These conversions are also heavily dependent on the HIVE price. In the last period there is around 15k HBD added daily in this way, while at the top it was 90k per day.
A total of 15M HBD was added in this way.
We can notice that these funds are actually higher than the inflation itself. Multiple times higher. Thing is they wont last forever and will end in a few years’ time. Also, as time progress they will become smaller. At the moment there is 57M HIVE left to be converted from the 83M plus when started.
HBD Added To The DHF From The @hbdstabilizer
Here is the chart for the net HBD added in the DHF from the @hbdstabilizer.
As mentioned the stabilizer receives HBD from the DHF, for the purpose of stabilizing the HBD peg.
If the HBD price is higher than 1$ then it will sell the HBD on the internal market. If the HBD price is lower than the peg, it will convert the HBD to HIVE and then buy HBD on the internal market. If the price is at the peg it will simply return the funds. It sends back funds to the DHF both, in HBD and HIVE. The HIVE that is sent back to the DHF is instantly converted to HBD in the DHF to be available for usage.
The chart above shows the net HBD added/removed in the DHF from the stabilizer. More than 1.6M HBD is added in this way in the DHF. We can notice there has been some volatility in the last weeks, with funds going up to 1.9M and back.
When there are spikes up it usually marks a period when the HBD price is up, and when there are drops it means that HBD has a down pressure on the price.
Cumulative HBD Added To The DHF
If we combine all the above, we get this.
From the chart above we can notice that the conversions from the ninja mined HIVE in the DHF are the main way for adding funds in the DHF. A total of 15M HBD or 70% of all the funds in the DHF has been added in this way. The regular inflation is on the second spot with 4.5M, and then the stabilizer with 1.6M.
Note there are other ways for adding funds in the DHF, like posts beneficiaries and transfers from other accounts, but the main funding's come from the three sources stated above.
Payouts From The DHF
As mentioned, this is the only way HBD leaves the DHF. Here is the chart.
The chart above includes the payouts to the @hbdstabilizer. We can see that they are now dominant, but as mentioned above the stabilizer returns backs these funds and is making profit for the DHF.
If we exclude the stabilizer the daily payouts from the DHF we get this.
The chart above represents realized payouts to DHF workers.
We can notice a steady growth here from a few hundred HBD per day at first and now we are in the range of 2k to 6k HBD paid daily. In the last days there is even a higher jump in the daily payouts with 13k HBD daily payouts. This is due to several proposals entering funding.
On a yearly basis the total payouts in 2020 were 600k, in 2021 900k, and for 2022 will probably end with more than 1.5M HBD in payouts.
The cumulative chart for payouts looks like this:
A total of 2.8M HBD was paid to DHF workers and proposals in a three years period. This might sounds a lot for some, but 3M for development is actually a small amount, having in mind the hundreds of millions throwing around in the industry.
HBD Balance In The DHF
Here is the chart.
When we add the funds added and removed form the DHF we get the chart above. A 19M HBD in the DHF now. Closing on 20M.
Accounts Receiving Funding From The DHF In 2022
A total of 20 accounts received funding from the DHF.
Here is the chart, excluding the stabilizer.
The @valueplan is on the top for 2022 with 230k HBD, followed buy the @spkproposal and @ecency. A total of 23 accounts have received funds from the DHF in 2022. Other know projects in the top as Keychain, Peakd, howo etc.
As mentioned, a total of 20 projects received funding in 2022 only. From the beginning of the chain, back in March 2020, a total of 45 accounts received some form of funding. Would be nice if up this number to a 100 at some point in the future 😊.
Summary For HBD Added And Removed In The DHF By Category
Here is the chart.
The Ninja mine conversions are on the top with more than 15M, the regular inflation has added 4.5M and then the stabilizer 1.6M. The payouts to DHF workers are at 2.8M and are negative on the chart.
A larger balance in the DHF is an assurance for the projects that are currently using it that the funding will continue without issues, and it will attract more developers. As we have seen the ninja mine HIVE conversions has been the main driver for the growing HBD balance in the DHF.
One of the key gainer from large DHF fund has been HBD itself. With more funds in the DHF, the @hbdstabilizer has more power to maintain the HBD peg on a daily level. As the funds continue to grow this will cement HBD further, that will improve its overall usability.
All the best @dalz
Posted Using LeoFinance Beta