The decentralized Hive fund plays a major role in the Hive ecosystem. It is the backbone for the development and funding of the platform. Since the creation of the Hive chain its role has increased massively since there is no centralized entity that will keep developing. The community members need to continue this and the DHF is providing the funds.
The DHF has 21M 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 more than 21M HBD at this moment.
Let’s take a look at the data.
Background generated with Midjurney
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 210k 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
- @hbdstabilizer
- HBD and 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 and co to the DHF. At the time of the fork in March 2020, there was more than 83M HIVE put in the DHF. 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.
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 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.
A total of 5.1M HBD was added in the DHF from the regular inflation. In the first half of 2023 this number is around 500k, while in the whole of 2022, there was a total of 2M HBD added in the DHF from inflation.
Funds From The Ninja Mined HIVE Conversions In The DHF
Here is the chart for the HBD added in this way.
This type of 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.
A total of 17.3M HBD was added in the DHF from this source. In 2023 this number is at 1.6M, while in the previous year of 2022, there was a total of 7.5M added from the ninja mine conversions.
This type of fund will slow down going forward as the amount of daily HIVE converted to HBD is going down. When the conversions started there was around 44k HIVE daily converted and now we are at 25k HIVE daily converted to HBD from the ninja mine. Meaning almost half from the start. Another significant factor is the price of HIVE. Nevertheless, these funds are limited, and after three years the conversions will end, and no more funds will added in this way.
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 in the DHF from the stabilizer. More than 2.5M HBD is added in this way in the DHF.
We can notice there has been some volatility in the year, with funds going up and down in the range of 2M to 2.8M.
When there are spikes in the HBD price, it usually marks a period when more HBD is added in the DHF, and when there are drops in the HBD price, the stabilizer is using more funds and is taking funds out of the DHF.
Note that the stabilizer also receive funds from posts payouts as beneficiary.
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 17.3M 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 5.1M (20%), and then the stabilizer with 2.7M (10%).
Payouts From The DHF
As mentioned, this is the only way HBD leaves the DHF. Here is the chart.
The chart above excludes the payouts to the @hbdstabilizer.
We can notice a few spikes in the payouts, usually when some project with heavy funding in a short period of time.
On average in the last period around 4k HBD has been paid daily to DHF workers. The spikes that we can see on the chart are usually when the @valueplan account has proposal. This account manages a multiple activities under it umbrella.
On a yearly basis the total payouts looks like this:
| Year | HBD |
|---|---|
| 2019 | 30,880 |
| 2020 | 616,784 |
| 2021 | 888,701 |
| 2022 | 1,775,947 |
| 2023 | 1,111,581 |
Note that 2023 is not over yet. The previous year 2022 has been a record high for payouts with 1.7M HBD.
Overall, since its beginning the DHF has paid around 4.5M HBD for proposals.
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.
More than 21M HBD in the DHF now.
We can see the sharp growth in the funds back in 2021 and 2022. This is mostly because of the ninja mine HIVE to HBD conversions in the DHF and the high HIVE prices at the time. In the last period this growth has slowed down as HIVE prices have dropped.
When we zoom in 2023 we get this:
The year started with 19.5M HDB in the DHF and now we are at 21.3M HBD.
Overall the DHF balanced has increased in 2023 but at slower pace from the previous years. For example in 2022 the year started with around 10M and ended at 19.5M, almost doubling the funds in the period.
Accounts Receiving Funding From The DHF In 2023
A total of 25 accounts received funding from the DHF.
Here is the chart, excluding the stabilizer.
The @valueplan is on the top for 2023 with 500k HBD, followed buy the @peak.open and @keychain.
A total of 22 accounts have received funds from the DHF in 2023. Other know projects in the top as @ecency, @spkproposal, @howo etc.
From the beginning of the chain, back in March 2020, more than 50 accounts received some form of funding.
Summary For HBD Added And Removed In The DHF By Category in 2023
Here is the chart.
The Ninja mine conversions are on the top with more than 1.7M, the stabilizer comes at the second spot with 900k HBD and then the regular inflation has added 550k HBD in 2023. The payouts to DHF workers are at 1.1M and are negative on the chart.
All the best
@dalz