People have been asking us lately how Hive works and how it is that we can reward ALL musician entries beyond the main prizes we give away at the end of each week. ๐
Hive has a unique token distribution system where everyone can earn a part of the inflation unlike on other chains where all of the inflation is given to one group of people.
Example: Bitcoin-miners, Eos-Blockproducers, Ethereum-stakers.
On Hive a part of the total inflation is distributed via โUpvotesโ. Those that stake Hive tokens decide who they will distribute that inflation to.
When someone wants to support you on Ethereum they buy your NFT and Eth leaves their wallet forever.
On Hive, those that stake tokens can reward you indefinitely, every day, and not only do tokens NEVER leave their wallet, they receive tokens themselves for upvoting, supporting you.
They earn while you earn!
The system is rewarding the Hive holders for supporting our Vibes music competition entries.