1Hive is a decentralized autonomous organization (DAO) that issues and distributes a digital currency called Honey.
What is a DAO?
DAOs are cybernetic super-organisms… or more simply, coordination protocols that enable humans to work together towards a common goal by regulating interactions through rules defined in software.
🌱A cybernetic super-organism
At a basic level a cybernetic system has a closed signalling loop, where action by the system generates some change in the environment and that change feeds back as input into the system.
In the case of the 1Hive DAO, a community currency called Honey is used to create a circular economy where public goods and investments that grow the 1Hive economy can be collectively funded with conviction voting.
Honey holders act as sensors by evaluating the environment and choosing to take action by buying, selling, or signalling their preferences for how the system should behave by staking on proposals. When proposals pass their effect may alter the environment, for example topping up the faucet may attract more new contributors and raise awareness of 1hive, where funding a farm may attract additional liquidity to a given Honeyswap pair. Each individual will judge how proposals have impacted the environment, assess their individual goals, and then take further actions as a result, creating a cybernetic feedback loop.
Because honey holders act as individuals within the system, acting based on their own inputs and producing outputs that in aggregate create more complex emergent behaviour, we can understand the system as a whole as being a form of superorganism, similar to a hive or even a city. Superorganisms exhibit some degree of coherent collective intelligence, even though the constituents decision making processes don’t require reaching consensus as a whole.
What is Conviction Voting?
🧠Conviction is 1Hive’s brain
Conviction Voting allows everyone to participate and shape the direction of 1Hive, while preventing anyone from taking control or ownership.
Conviction Voting regulates honey outflows based on a combination of stake and time, serving as both a way to proportionally represent signals in output actions as well as budget resource expenditures over time.
Unlike a traditional voting model, all proposals are considered “on the table” simultaneously. To support a proposal, you must stake some amount of honey behind a proposal, while staked you cannot use the same honey to support any other proposals, and if you transfer the honey you have staked your support will automatically be removed from the proposal.
By staking to a proposal you are signalling that you want the proposal to pass, however, the signal doesn’t take just the balance that is staked, but also the time that it has been staked. In other words it’s not sufficient to simply stake to a proposal and then immediately change your support, to maximize your influence you have to stake and let your conviction for that proposal build up over time.
This has some really interesting properties:
- People have to hold honey over time in order to influence how honey flows, so by supporting a proposal people are exposed to the price changes associated with broadcasting their support.
- Honey can only be used to support one proposal at a time, so proposals are inherently competing for the support of honey holders.
For each proposal that requests honey from the common pool there is an associated activation threshold expressed as a proportion of total conviction available in the system that must be achieved. This means that requesting a small amount of the common pool will require less conviction than requesting a larger amount, and that proposals will require less overall conviction when there is less honey actively being used to stake on proposals overall.
And once again this introduces some interesting properties:
- The rate at which conviction accrues determines a maximum rate at which honey can leave the common pool.
- Activating honey to support the “abstain” or other signalling proposals increases the amount of honey required to pass funding proposals and slows down the rate at which honey can leave the common pool.
Anyone who holds Honey is a part of the DAO and can influence how Honey in the common pool is distributed via Conviction Voting
What is Honey?
🍯Honey is 1Hive’s lifeblood
Honey is at the heart of everything we do, by optimizing how we issue and distribute honey we can grow the 1Hive economy, reward contributors, and expand our community.
The issuance and distribution of Honey is regulated by the smart contracts that constitute the 1Hive. You can create, monitor, and stake Honey on proposals using the frontend located at https://1hive.org/#/home
And why Honey?
Because Honey is money. Seriously.
Issuing a digital currency allows a community like 1Hive to build an economy.
Holding a specific community currency is a bet on the future growth of that community’s economy. The more people who hold the currency, the more people who will have interest in participating and growing the economy.
Each community may adopt different social norms and may use different issuance and distribution policies to allocate shared resources. The most effective communities will thrive and grow, competing for the attention and loyalty of individuals. Choosing to hold a specific currency will evolve beyond just a financial decision into a political and social one as well.
This type of competition is good for everyone, and should hopefully lead to a future that is more free, fair, open, and humane.
1Hive is an open community, you do not need to ask permission to join or become a member. If you see something you think should be improved, you can make a proposal to get Honey from the common pool and make it happen.
If you have any questions, join our amazing community, there are many people who will be more than willing to help you.
1Hive is offering a new user bounty! Every new user can earn 1xDai ($1USD), join the bounty here: New User Bounty
🍯Love&HNY from the team!🍯
Follow us on Twitter to keep up with the latest news: https://twitter.com/Honeyswap
In case you run into any trouble hop on Discord: https://discord.gg/kYF8uHy6
Get involved in the conversation on Telegram: https://t.me/honeyswapDEX
For Reddit lovers join: https://www.reddit.com/r/HNY
Special thanks to 1hive user Berserk!