What's the actual value of the HYDRO token? I haven't seen a very clear answer on this yet. Why does the HYDRO platform need its own token instead of using ETH and why will that token appreciate in value?
HYDRO is a utility token and is required to accomplish various functionalities (right now: to execute a Raindrop authentication, in the future: a whole host of uses). Each phase of the project will utilize the HYDRO token in some way.Some of these functionalities could technically be achieved with ETH, but I believe this is a misnomer. ETH and HYDRO have two very different use cases - ETH is a currency to fuel computations on the Ethereum network, while HYDRO is a token to trigger and unlock functionalities within the Hydro ecosystem. Conflating the two is confusing and disingenuous, in my opinion. Here is how I think about it:
Using ETH would restrict what we can do, and introduce competitive barriers as to the actual use of those tokens. Why would someone use ETH within the Hydro ecosystem if ETH also has hundreds or thousands of other potential uses that have nothing to do with Hydro? Why would we tie ourselves to the supply and demand dynamics of a token that has an entirely different use case then what we intend it to be used for? At best, this muddles the Hydro value proposition, and at worst, it is a game theoretical disaster in which developers never expand beyond ETH's native use cases. These issues are almost entirely circumvented by introducing a HYDRO utility token.
I don't have any comments on the value of the token, but here are some facts: We are aggressively pursuing real-world adoption of the tech. That adoption is directly correlated with the use of HYDRO, and the supply of HYDRO is fixed.
