How much return do you get on curation of tribe tokens?
There are quite a lot of so called hive-engine tribes that have their own front-end and their own token. Every post on hive can be eligible to be seen on these front-ends and to earn these tokens. What matters in this respect is the tags on the post. For example, if you want to earn CTP tokens with your post, you will need to put the #ctp tag. When using this tag, your post will also be visible on the ctptalk.com front-end.
There are several tribes and it's even possible to use several different tags on your posts and they will earn several tokens in addition to hive. This is a neat way to increase your income from these posts. However, it's important to use only the tags in an appropriate way. Do your research before using the tag. To make sure that what you post actually fits this tribe.
If you stake these tribe tokens, you can also curate with this stake and earn income. A good advice is to create separate accounts for each tribe so that you can concentrate on voting on posts that carry only the tag in question. Of course this can become a lot of work and not everybody does have the time to do it. Therefore it's even more important to understand whether it's actually worth to curate with tribe tokens?
Is it worth to curate with tribe tokens?
Most of the tribe tokens have a linear reward curve and they have a 50/50 split between author and curation rewards (CTP has 60/40). However, the curation rewards that you can generate are totally different from one tribe to the next.
Curation APR for tribe tokens
I have calculated the curation rewards for several tribe tokens just to illustrate how much fluctuation there is:
| Token | Curation APR |
|---|---|
| LEO | 14.9% |
| CTP | 35.5% |
| BEE | 69.1% |
| ONEUP | 94.1% |
| CENT | 226.6% |
If you curate with LEO stake, you will get about 15% APR. If you do it with CENT tokens, you will get almost 227% APR. You can see that this is a huge difference.
The curation reward APR of Hive is at the moment around 9.5%.
Why are the curation APR's so different among tribe tokens?
There are many factors that play into these differences. Most importantly, it depends on how many tokens are minted and also how many tokens are already in circulation. The older a token, the more tokens will be in circulation and the more the APR will drop. Then there are factors like the staking rate and the voting rate that matter. The more tokens are staked and the more people curate with their stake, the less rewards you will generate.
Curation vs. Diesel pools
When you look at the curation rewards that you can generate and you compare them with the rewards that you can get for providing liquidity in Diesel Pools, it can actually be more rewarding to do the later. The big advantage with the Diesel Pools is that you don't even need to vote on posts to generate an income... But not all tokens have such diesel pools available.
Are you actively curating tribe tokens? Which ones?
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Great! Now I'm on listnerds so I put the ctp tag in every post I make(fifth position) Most of the time my content doesn't have to do with this token tag but I want to earn some ctp to stake. I'm also active in the pizza.hive Discord and I stake pizza also. My next move is liquidity pool for both pizza an ctp. What do you think? Am I making good choices?
!PIZZA
It's a good idea to use the CTP tag on your posts. As long as they are in relation with business building or personal development, it's fine. Like that you can accumulate CTP tokens to use on Listnerds or to curate with them. Pizza are also a great. It works a bit differently for tribe tokens and Pizza has nice liquidity pools. At the moment there are no diesel pools where you can stake ctp tokens but this might change.
Yeah, I'm still a newbie so I learn every day. For now, I stick with those two. Thanks
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@achim03! Maybe you can answer my question. Nobody seems to know, unfortunately. There are tribes that have two different tags, which one should I use? For example, Leofinance has two: #leo and #leofinance. I usedboth, but according with my findings, I don't get more or any different than using just one. And besides, I'm using an extra tag that I could use for #CTP. Another one is Proofofbrain they had #proofofbrain and #pob! I don't know what to do. I also try to collect Oneup and STP. Those tokens are awesome! Thank you for this article!
It's true that some tribes have several tags. It's actually enough if you use one of them. For Leo I always use #leofinance. For POB, I use #proofofbrain. I believe you can use either or. It's not necessary to put both.
Thank you so much, @achim03! I will do that and I will try to post next time from peakd, in order to put more tags. Nowadays, I have to leave out #proofofbrain due to the lack of tags spots. Have some !PIZZA, please!
Could you just use a hashtag in the body of the text? or does it have to be in the topics-tags?
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It has to be in the topics-tag. This means also that the number of tags is limited per post.
Great information and I didn't think that curation can reach such high levels. But if they do, much more incentives to curate day after day.
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In the early periods of a tribe, curation rewards can be astronomical, simply because very few tokens are in circulation. The more tokens are printed, the lower the APR will become.
It's definitely an interesting challenge to figure them all out and to be aware of which tribes negate which other tags from their "official" curation. On VYB, for example, if you use other "general" tribe tags, you're unlikely to be curated by any of the major trails following the VYB tag.
You have to be selective and wise with your tag usage. Of course, there are also some tokens that don't have their own front end, but you can vote posts with certain tags and get curation rewards.
=^..^=
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You are right, it can be pretty challenging to get the best output from your posts. I tend to concentrate on 4-5 tribes which correspond most to my content and I try to build my stake there.
The issue with earning a return on on curating with tribe tokens is that you are getting paid in that same token.
So to actually realise these returns, you have to dump the token on the market.
But most are extremely illiquid and lack demand so the prices continue to fall.
This is why LEO continuing to build use-cases and source liquidity on other platforms is so important.
It makes curating here with LEO the clear top choice, even if your percentage rewards aren't as high as the others.
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I totally agree with you. The main problem with most of the tribe tokens is that they have only one use case and it's that you can stake it. LEO has a mirriad of options and use cases. Therefore the APR of a token isn't the only indicator why we should curate with a certain token.
It looks like the newer tribes are the ones with the highest curation APR. It makes me wonder if people put in money and just curate with them to make a profit back. Of course, it depends on how much demand the tribe has.
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It's a bit like DEFI, purely from a minting perspective, the early days are much more interesting. When it comes to give value to the token, not all tribes are successful...
I am a fresher, and still have not understood.. but trying earnestly to Vote each and every post.. Will soon understand..
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It can be quite overwhelming when starting on the blockchain :-)
Interesting stats! Yeah, I noticed ONEUP has gone down from 3 digits to high 2 digits lately, like you mentioned, probably due to a larger supply now. Am actively curating SPT and ONEUP posts for now.
I'm a fool! I should stake my CENT instead of adding them to a diesel pool where I earn almost nothing. Do you know what's the unstaking period for CENT?
You can find it in tribaldex. It's 28 days for unstaking for CENT.
Thanks! Didn't know I could see that in TribalDex.
Yes, I am. CENT, SPT, and SME. Thanks for that comparative APR you provided. Just curious if the amount staked in those tokens are all the same.
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