What a week!
I have finished the last of my exams and it looks like I will soon my qualification :) .
Still have a couple weeks of bureaucracy and paperwork ahead of me, but overall I am very happy for the outcome.
Whatever! Let’s talk a bit about PWR.
In my last post I received direct feedback to address some of the questions regarding PWR tokenomics.
And that's just what I'm going to talk about. Some changes are already implemented while others will come later (+ a little surprise).
- Staking (Live)
- Surprise Airdrop (-)
- Liquidity Pool (September)
- Delegation Rewards (Live)
- Witness (Live)
- Curation income (-)
- VSC (No Date)
Staking Rewards
Let's face first the most aggressive changes.
While I think they have been an interesting addition to give an alternative to PWR holders who are not interested in the Pool, I think it pays too much APR (in relation to the pool).
For reference, there’s ~35K PWR staked (being 10K mine), and the staking contract is currently distributing 0.75 PWR/hour so ~6570 PWR yearly.
6570/35000 -> 0,187 -> ~19% APR paid fully in PWR.
It’s simply too much. LP APR should always be magnitudes higher.
I also do not like that PWRs issued in this way are minted as new supply, I would prefer to top up a 'rewards contract' like I already do with the LP.
It's also more of a burden now that PWR is overpegged.
For these reasons, I'm drastically cutting staking rewards. Right now 0.75 PWR per hour is distributed, I'm lowering it to 0.2 PWR/hour.
At 0.2 PWR/h the APR with the current numbers would be ~5% which is a conservative number for crypto standards.
But I have a little ace up my sleeve. Since I control 10K PWR of the 35K staked, I can simply remove my share to increase the % for the rest of the participants.
This way the APR from solo-staking increases to ~7% (from 5) while reducing a lot staking inflation (from 6570 down to 1752 tokens).
Surprise Aidrop for PWR Stakers
Back in the day, I said:
''I won't change staking rewards until September''
Concretely in this post.
And now I am breaking my promise. I think for a good reason, but it is what it is.
I don't like to go back on my word, so I thought I'd offer a small compensation for the sudden change (especially for users who don't check their holdings that often). This airdrop is intended to compensate for the difference in APR.
1000 PWR Airdrop!
Theoretically, this airdrop should almost entirely compensate for the rewards not generated in the next 4 months taking in account the APR reduction from ~19% down to ~7%.
It's basically an instant 3.6% airdrop on your PWR staked amount or approximately 0,0361 PWR given for every PWR staked (minimum threshold of 10 PWR).
Those 1000 PWR are coming from new inflation and are being distributed directly staked (just in case some holders are dormant and don't check frequently). Unstaking time is just 1 day so no big problem there.
Complete list of beneficiaries:
| User | PWR Staked | Airdrop |
|---|---|---|
| @x30 | 10000 | 365.91 |
| @yabapmatt | 6901 | 252.43 |
| @resiliencia | 2000 | 73.16 |
| @ichheilee | 1946 | 71.18 |
| @trumpman | 1805 | 66.02 |
| @lbi-pwr | 1519 | 55.58 |
| @spi-store | 823.400 | 30.12 |
| @gadrian | 294.877 | 10.78 |
| @shmoogleosukami | 228.000 | 8.34 |
| @oldmans | 213.768 | 7.82 |
| @borsengelaber | 200.000 | 7.31 |
| @tiffin | 164.000 | 6.00 |
| @bozz | 151.855 | 5.56 |
| @dera123 | 147.238 | 5.38 |
| @xrayman | 117.481 | 4.30 |
| @tonyz | 114.714 | 4.20 |
| @toofasteddie | 112.176 | 4.10 |
| @dbooster | 109.242 | 3.99 |
| @josediccus | 104.923 | 3.83 |
| @costanza | 100.989 | 3.70 |
| @alexvan | 78.649 | 2.88 |
| @braaiboy | 51.691 | 1.89 |
| @riandeuk | 30.149 | 1.10 |
| @cwow2 | 29.285 | 1.07 |
| @cryptoyzzy | 25.802 | 0.95 |
| @pardinus | 24.451 | 0.90 |
| @alohaed | 20.209 | 0.74 |
| @bulliontools | 19.106 | 0.70 |
| @melbourneswest | 10.000 | 0.36 |
** Sending every transaction has a little cost, so if you're one of the few users with less than 10 PWR staked, just let me know in the comments and I'll drop a compensation upvote ;)
- PWR Staking Rewards -> Changed to 0,2 PWR/h (from 0,75 PWR/h).
- Airdrop Status: Completed!
~~EDIT: 23/05/2025 - For whatever reason the airdrop tx went through but I don't see anything and the PWR are stucked in limbo. I've already contacted Hive-Engine Support to see what happens. ~~
EDIT: 28/05/2025 - Ok, seems that everyone received his fair share.
If you're reading this, the airdrop has probably been issued and the new inflation for PWR staking rewards is LIVE!
Liquidity Pool (SWAP.HIVE-PWR)
I like how the pool has performed over the last year since the introduction of ‘HIVE dividends’. It’s currently paying a juicy ~20% with a very high liquidity ratio relative to the market cap of the token.
My idea is to keep improving this and my intention for the third year is that the pool will stop paying half PWR and half HIVE and just pay 100% HIVE.
Now that PWR is not following anymore a 1:1 ratio with HIVE, I believe it will be increasingly important to build up a 'neutral' LP position. A thing that I’ve already started doing.
@vventures holds 4K HIVE and 3K PWR and is the third biggest LP with a ~12% of the pool. I’ve been buying off PWR from this account whenever it’s underpegged in random amounts and times. This HIVE and PWR will be held for now as liquidity.
Introducing ‘’Powered Up LP’s’’
This is another tweak I’ll be introducing to the SWAP.HIVE:PWR LP.
In a nutshell: ‘’Hold your LP for 3 months and increase your APR daily’’.
Think about ''Powering up'' HIVE, but without the lock (and the governance perks).
This is a feature already live in Tribaldex/Hive Engine with no additional developing effort needed.
Will work as follows:
For every day a user holds onto his LP, his perceived APR will be higher (1% higher daily for 90 days).
This basically means long-term LP holders will benefit substantially for his commitment, while fast flip-floppers will receive a lot less (but still a decent APR though).
Add to this the factor that the rewards will be 100% HIVE and I think we have a very attractive recipe here.
This changes will come into effect in the second week of September, shortly after the current epoch of rewards ends in ~120 days.
Witness Rewards
So far witness rewards from @empo.witness have been used as an additional source of income for the project.
From now on, I'll just keep the witness income for myself.
And that's it, witness rewards removed from the PWR income.
Delegation Rewards
You've probably already noticed, but the change in distribution announced with the PWR revamp is already working.
Now PWR delegation rewards fluctuate with the PWR price Vs HIVE. This has massive implications since this is the biggest inflation source for PWR. I'll use a 100K Hive Power delegation for the example.
Before the changes, with a 100K Hive Power delegation the project was issuing ~12K PWR/yearly or ~32,87 PWR daily.
After the changes, that same delegation (100K) is issuing ~9230 PWR/yearly (with PWR a 1,3 HIVE) or ~25,28 PWR daily.
This means, as PWR value crawls up (in HIVE terms), less PWR is printed from delegations... making the PWR token more and more scarce.
So far so good.
Curation Income
@empo.voter currently has +100K Hive power in delegations which are yielding ~140 HIVE/weekly.
For now I'm keeping those HIVE liquid. I'll be using those for the following:
- Buyback PWR (and providing it as LP).
- Prepare a buffer to start distributing to LP's in ~4 months (100% Hive divs!).
VSC Migration
It’s still early to talk about the VSC migration although I’ve started doing some research on it from a developer perspective. What it would take to migrate the PWR token from Hive-Engine to VSC and these kinds of things.
This is still a long term goal (+1 year away) and first I would like to see VSC maturing for some time and other projects/apps launching there first.
May be something interesting to work on during the bear market in 2026-2027. Who knows.
For now, the focus is to overpeg more HIVE into PWR.
Conclusion
PWR as whole is getting stronger.
- Check the Public Portfolio
- Join the PWR Discord for doubts
You're not voting for my witness yet and love what I do? Don't ask me more:
**Images generated with ChatGPT.