I love the concept of #HivePUD, or Power-Up Day! It’s a fun little incentive and community initiative to keep users optimistic, committed and invested in the blockchain. So this time, I decided to join with 600 HIVE in order to get back up and above 30k (Always feels good to reach another round number, regardless of the size, doesn't it?).
I haven’t been actively powering up a lot in recent months because I’ve anticipated an incoming alt season ever since BTC broke past $20,000 and didn’t seem to look back. So obviously, I’ve wanted to keep some liquids and have been making some good trades recently. But with a higher price than before, and more people powering down to take some profits (which I do recommend people do if only a 1/13th.), also have some positive flip sides for Power Holders.
Less Staked HIVE = More rewards allocated by those with Hive Power.
One thing most users are always curious about is the max value of their votes. Whether it is after the price of HIVE has seen some significant changes in either direction or because one has powered up some stake. And while those two are likely to be the two most significant factors determining the voting value for most, it is not the only ones.
Your Hive Power (HP) represents your ownership share in the blockchain and thus your influence. The reward pool at any given point in time will have a certain value, which is then allocated by the votes of token holders. Your influence of that allocation is equal to your percentage share of total staked tokens. In other words: When less HIVE is Powered Up, your HP has greater influence as it makes up a larger portion of the total HP, and your vote is thus larger.
With a larger vote, you will also earn more curation rewards, as well as potentially earning more author rewards if you occasionally upvote some of your own posts. Meaning that when others power down, you earn more if you don't.
I think this simple fact is worth reminding people of. It seems to be taken for granted by most that when the price of HIVE goes up, those with HIVE staked become the losers because they don't get to sell. Well, not necesarrily. You need HIVE staked to benefit from allocating more HBD. And if others rush to power down and take some profit, you can benefit more than you did before.
We’ve been here before
I remember when I first joined, the price had just reached $1 again for the first time in almost a year after a harsh bear market that saw it fall down to $0,07. Naturally, anyone who had gone through that was stoked to see it break one dollar, and many took some profits. Yet that was just the beginning of more than a year of price levels beyond $1, reach up to $8 at its peak. HIVE, IMO, has much greater potential. And the crypto market this time has much more capital to work with.
The point I’m getting to is that this window right now could very well end up being a unique opportunity to earn more Hive Power (regardless of the USD value). With more power-downs, your vote is relatively larger and you’ll earn more Curation rewards and can allocate more author rewards. At the same time, HBD is trading well above $1, meaning in addition to the above effects you can pick up more HIVE with your payouts.
So in conclusion, if HIVE ends up staying at this price level (let alone continue to rise) then powering up and being active in this period can be a unique opportunity to acquire more Hive Power. So hopefully, that can motivate some more to power up!
Happy #HivePUD :)
Fredrik / @fredrikaa