In the context of the Liotes project, we are always looking for projects to invest in. To be honest, we kind of left all tribe tokens aside about a year ago when we saw that the tokenomics of these tribes were simply not sustainable.
The problem of most tribe tokens – first hype then crash
When a new tribe token comes out, it's actually pretty interesting to jump on the wagon. The reason is purely mathematical. There are very few tokens in circulation and for the staked tokens, the curation APR can be pretty high. As long as this is true, the tokens are pretty high in demand because people see the nice return. The bigger the supply however, the smaller the curation return gets. Again this is purely mathematical. The tribe tokens have a more or less stable supply but with every token that is staked additionally, the return for the existing stakers diminishes. With lower return, we see also lower demand. People lose interest and tend to turn to other stuff. With almost the same minting amount and lower demand, the price can only go down. Unfortunately, most tribe tokens follow this pattern at a variable speed.
Nowadays, most hive users are familiar with this pattern and that's why many don't try to accumulate tribe tokens anymore. There are however exceptions...
Bringing value to the tribe tokens
I studied the ALIVE ecosystem these days. I really like the way this tribe is giving value to their token. When you stake this token, you not only get curation rewards in ALIVE but you also get other tokens in addition to that. When you stake ALIVE, you get daily dividends in the form of several tokens like BRO, PGM, LOLZ or DHEDGE. They also have a mining token ALIVEM that mints ALIVE tokens but you also get AWESOME tokens for staking them.
In my opinion, this is a huge difference in respect to most other tribe tokens. It means that the project distributes not only tokens that are the results from inflation, which can be printed at will. It also distributes real value tokens that have to be purchased first. In other words, the project manages to generate some real value for it's stake holders ! You just need to stake ALIVE and your BRO portfolio grows every day. BRO in turns, pays daily dividends to you.
There is much more to it I believe, but in my opinion this is one reason why this tribe token manages to keep it's value pretty well over time. I believe that it's a great example that a tribe can generate real value for it's users and that other development patterns are possible for tribe tokens !
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