Hive is a decentralized information-sharing network and Web3 blockchain ecosystem. It operates on the Delegated Proof-of-Stake (DPoS) consensus protocol, featuring 3-second block times and fee-less transactions. ^{[2] [3]} The network was launched on March 20, 2020, as a community-led hard fork of the Steem blockchain. ^[4]​

Hive is designed to store vast amounts of immutable content, enabling time-based monetization for creators and curators through a "Proof-of-Brain" (PoB) mechanism. The ecosystem supports a wide range of decentralized applications (dApps), including social media, games, and DeFi. It has two native tokens: HIVE, the liquid governance token, and Hive Dollar (HBD), an algorithmic stablecoin pegged to the U.S. dollar. ^{[1] [5]}​

History

Hive was created as a community-driven hard fork from the Steem blockchain. The fork was a direct response to the February 2020 acquisition of Steemit Inc., the founding company of Steem, by Justin Sun of the Tron Foundation. A significant portion of the Steem community perceived this acquisition as a threat to the network's decentralization, citing concerns over the influence of a single entity. ^[2]​

The Hive blockchain officially launched on March 20, 2020. The initial distribution of HIVE tokens was a 1:1 airdrop to STEEM holders based on a snapshot of the Steem blockchain. However, in a controversial move, the Hive community excluded certain Steem accounts from the airdrop, which they believed had participated in centralizing the original chain. ^{[2] [3]}​

Since its launch, the network has undergone several major upgrades (hardforks) to enhance its features and performance. Notable hardforks include "Equilibrium" (Hardfork 25) on June 30, 2021, and a subsequent upgrade on November 19, 2025 (Hardfork 28), which was deployed seamlessly. ^{[6] [7]}​

Technology and Architecture

Consensus Protocol

Hive uses Delegated Proof-of-Stake (DPoS), a consensus mechanism where token holders use their staked HIVE to vote for individuals, known as "witnesses," to secure the network. The top 20 elected witnesses are responsible for producing and signing transaction blocks, with additional backup witnesses on standby. Witnesses are also responsible for maintaining a reliable price feed for the HIVE/HBD market and approving protocol changes. ^[2]​

Core Features

The Hive blockchain is built on a Graphene-based framework and features several key technical specifications:

• Block Time: Transactions are processed in 3-second blocks. ^[3]
• Fee-less Transactions: Hive replaces traditional gas fees with a stake-based "Resource Credits" (RC) system. ^[8]
• Transaction Finality: The network's DPoS implementation achieves one-block irreversibility, meaning transactions are considered final within 3 seconds. ^[3]

Resource Credits

Instead of charging per-transaction fees, Hive uses a "freemium" model based on Resource Credits. Users stake HIVE (as Hive Power) to receive an allotment of RCs. These credits are consumed when performing on-chain actions like posting, voting, or transferring funds. RCs regenerate over time, allowing active users with sufficient stake to transact for free. New accounts are provided with a starting amount of RCs to facilitate initial activity. ^{[1] [2]}​

Account System

Hive accounts feature human-readable usernames, which also serve as wallet addresses. The system includes a hierarchical key structure to enhance security:

• Owner Key: The master key used for account recovery and changing other keys.
• Active Key: Used for sensitive operations like fund transfers and governance votes.
• Posting Key: Used for social actions like posting, commenting, and voting.
• Memo Key: Used to encrypt and decrypt private messages included in transactions.

A compromised account can be recovered by its designated "Trustee" account within 30 days of an unauthorized owner key change. ^[2]​

Hive Ecosystem Tokens

HIVE and Hive Power (HP)

HIVE is the native liquid cryptocurrency of the blockchain. It can be staked in a process called "powering up," which converts it into Hive Power (HP). HP represents a user's vested interest in the network and grants them influence over reward distribution (curation) and governance, such as voting for witnesses and DHF proposals. Unstaking HP, or "powering down," takes 13 weeks, with the funds released in equal weekly installments to protect the network from rapid capital flight. ^[2]​

Hive Dollar (HBD)

Hive Dollar (HBD) is the native algorithmic stablecoin of the Hive ecosystem, designed to be pegged 1:1 with the U.S. Dollar. ^{[9] [10]}​

Peg Stability Mechanism

HBD maintains its peg through two on-chain conversion operations that create an arbitrage framework:

• HBD to HIVE Conversion: Users can convert HBD into an equivalent of 1.00. ^[9]
• HIVE to HBD Conversion: This collateralized operation allows users to convert HIVE into HBD. It also takes 3.5 days to complete, with a 5% fee charged on the value of the conversion. The fee is burned, creating a deflationary effect on the HIVE supply. ^[9]

HBD Savings

HBD holders can deposit their tokens into a dedicated on-chain savings account to earn interest. The Annual Percentage Rate (APR) is variable and is determined by the consensus vote of the Hive witnesses. As of late 2025, sources report this rate to be around 20%. Funds deposited into savings are locked, and withdrawals require a 3-day unlocking period. ^{[9] [10]}​

Risk Management: The Haircut Rule

To protect the ecosystem from excessive debt, the Hive protocol includes a built-in safety mechanism called the "Haircut Rule." This rule activates if the total market capitalization of HBD reaches or exceeds 30% of the market capitalization of HIVE. When triggered, the protocol temporarily deactivates the HIVE-to-HBD conversion and modifies the HBD-to-HIVE conversion to return slightly less than $1.00 worth of HIVE per HBD. This intentionally breaks the peg in a controlled manner to reduce the system's overall debt ratio. ^[9]​

Inflation

Hive launched with a decreasing inflation rate, which started at 9.5% and lowers by approximately 0.5% each year until it reaches a terminal rate of 0.95% per year. The newly created HIVE tokens are distributed as follows:

• 65% to the Reward Pool for content creators and curators.
• 15% to Hive Power (HP) stakeholders.
• 10% to Witnesses for block production.
• 10% to the Decentralized Hive Fund (DHF). ^[2]

Governance and Monetization

On-Chain Governance

Hive's governance is decentralized and managed by its stakeholders. Key decisions, such as protocol upgrades (hardforks), require the approval of at least 17 of the top 20 consensus witnesses, who are elected by stake-weighted voting. ^[2]​

Decentralized Hive Fund (DHF)

The DHF is a community-governed treasury funded by 10% of the blockchain's inflation. It operates as a decentralized autonomous organization (DAO) where community members can submit proposals for development, marketing, or other projects to benefit the ecosystem. HP holders vote on these proposals, and those that receive enough support are funded directly from the DHF. ^[8]​

Proof-of-Brain (PoB)

Proof-of-Brain is the content monetization mechanism that distributes rewards from a dedicated pool funded by 65% of Hive's inflation. When users publish content, other members can vote on it for a 7-day period. The weight of a vote is determined by the voter's Hive Power. At the end of 7 days, the rewards for the post are finalized and split: 50% to the author and 50% to the curators (voters). This system is designed to reward the creation and discovery of quality content. ^[2]​

Adoption and Ecosystem

The Hive ecosystem includes hundreds of dApps, APIs, and front-ends. ^[1]

• Applications: Major applications on Hive include the play-to-earn game Splinterlands, the social front-ends PeakD and Ecency, the video platform 3Speak, and the microblogging service DBuzz. ^[11]
• Wallet Support: The Hive ecosystem is supported by browser extensions like Hive Keychain and mobile wallets. It also has hardware wallet support through Ledger devices. ^{[12] [8]}
• Exchange Listings: The HIVE token is available on numerous centralized and decentralized exchanges, including Binance, Upbit, HTX, Gate.io, and MEXC. HBD is primarily traded on Upbit. ^{[11] [13]}
• Partnerships: Hive has engaged in various sponsorships and partnerships, including a long-term collaboration with esports organization Mazer Gaming and sponsorship of a World Rally Championship (WRC) team. ^[14]