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Tokenomics
Hedge tokenomics
The Hedge protocol issues 2 protocol tokens - USH and HDG. USH is an overcollateralised stablecoin issued by locking up collateral and as such has a varying supply over time. HDG is the protocol token. At launch, users may stake HDG to earn portion of protocol fees, which are taken during loan initiation - this model may change as the protocol matures and HDG is used for governance.
HDG token distribution.
There are a total of 10M HDG tokens.
60% of all tokens are allocated to the community, with 45% of the total tokens given out as liquidity & stability mining incentives. 5% of the total is given out as community rewards which include incentives for integration and potential airdrops. 10% of the total is kept aside for the Hedge Treasury. A portion of the Hedge Treasury will be staked to generate revenues for the team and community, though Hedge will ensure that the staked tokens do not represent more than 50% of the staking pool at any point in time.
15% of all tokens are set aside for investors - with 10% of the total going to seed investors and 5% set aside for future fundraise if needed. The seed investors have a 18 month vesting schedule after token launch with a 1 year cliff.
25% of all tokens are allocated to the core team and are subject to a 3 year vest with a 1 year cliff.
Hedge will start liquidity mining at the same time as mainnet launch. This is the expected emission schedule for HDG token emission over the next 6 years. The stability pool incentives are fixed and halve every year.
Target HDG emissions for the 1st year after launch
Target HDG emissions 6 years after launch
| Emissions schedule | Liquidity Incentives | Stability Pool Emissions | Cumulative Total |
|------------------------|--------------------------|------------------------------|----------------------|
| Month 1 | 70’000 | 112’250 | 182’250 |
| Month 2 | 60’000 | 105’951 | 348’201 |
| Month 3 | 60’000 | 100’005 | 508’206 |
| Month 4 | 50’000 | 94’393 | 652’599 |
| Month 5 | 50’000 | 89’094 | 791’693 |
| Month 6 | 45’000 | 84’094 | 920’787 |
| Month 7 | 45’000 | 79’373 | 1’045’160 |
| Month 8 | 45’000 | 74’918 | 1’165’078 |
| Month 9 | 45’000 | 70’714 | 1’280’792 |
| Month 10 | 45’000 | 66’745 | 1’392’537 |
| Month 11 | 45’000 | 62’999 | 1’500’536 |
| Month 12 | 40’000 | 59’464 | 1’600’000 |
| Year 2 | 500’000 | 500’000 | 2’600’000 |
| Year 3 | 400’000 | 250’000 | 3’250’000 |
| Year 4 | 300’000 | 125’000 | 3’675’000 |
| Year 5 | 200’000 | 31’250 | 3’906’250 |
| Year 6 | 200’000 | 15’625 | 4’121’875 |
A total of 2M HDG tokens will be emitted over the total lifetime of the Hedge contract. Emissions are dictated according to the following half-life formula, where f(n) represents the total amount of tokens emitted on day n after launch.
Last modified 8mo ago