[Steemhunt] Converting Geek Capita

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Hi, @jayplayco here.

Steemhunt has announced a new function at 10th of December 2018. This has been actually a very important part not only for hunters but also for Steemhunt itself. The new function called Boost HUNT switch is again a new way for a service orientated business to be able to gain the trust from the community in the token economy and also to be able to prepare and open possibilities for profit.

0. Repository

https://github.com/Steemhunt/web

1. What is Boost Hunt?

When posting a hunt you will normally gain STEEM based STU from upvotes. With the Boost HUNT button on, all STU for the hunter will be converted into the same value of HUNT tokens.
![image.png](https://files.steempeak.com/file/steempeak/jayplayco/byopqRjz-image.png)

The HUNT conversion rate is dynamically calculated based on the demands. (based on the average price from past 7 days STU-HUNT swap transactions) So factors like how many hunters are converting how much STU to HUNT is mainly driving the price here.

2. Why is this important?

a. From the view of a hunter

* Additional resource to gain HUNT tokens. * Getting boosted with a special character that brings more attention on your hunt. * Get a positive influence on your user score. * Contributing to the HUNT token economy and secure the value * Getting real value on HUNT tokens

b. From the view of Steemhunt as business

Compared to business concepts like @steemmonsters or @dstors the revenue stream is not directly based on a transaction but at the end will have to capitalize on the so-called "Geek Capita". Steemhunt will need enough engaged users inside and outside of Steem to get Brands and Makers interested in that target group and paying to get involved with that group. Unless Ideahunt or Reviewhunt would start, there is no direct revenue stream for Steemhunt available. With Boost Hunt there are two difficult parts solved at once.
  • Establishing a first price for HUNT tokens that get not slashed when arriving on the market. (prevent DOA)
  • Create a revenue funnel before Ideahunt and Reviewhunt are launching.
  • Soft-Launching the upvote functionality for HUNT tokens.

I have checked the data from the 12th and 13th of December manually and it was a converting rate based on the value of about 9%. I suppose that this is going to increase over time, especially when the token will be transferable. The conversion rate would need a bit more time to get established, based on the demand, but the conversion rate is already making the HUNT tokens more expensive in the last few days. On the 10th of December, the conversion rate was at 19.97 and is today at 18.91.

3. Conclusion

The great part of delegation is that you are able to reward your users based on POB. The difficulty is that even with a reward for your users, there is no real revenue stream for your business itself unless you are able to capitalize the user power. This kind of strategy could be a new way to pre-start the capitalization of your user power and secure your business growth.

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