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Tokenomics
Hedge tokenomics
Token utility
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 distribution
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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.
HDG Emissions
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
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1
| Emissions schedule     | Liquidity Incentives     | Stability Pool Emissions     | Cumulative Total     |
2
|------------------------|--------------------------|------------------------------|----------------------|
3
| Month 1                |                   70’000 |                      112’250 |              182’250 |
4
| Month 2                |                   60’000 |                      105’951 |              348’201 |
5
| Month 3                |                   60’000 |                      100’005 |              508’206 |
6
| Month 4                |                   50’000 |                       94’393 |              652’599 |
7
| Month 5                |                   50’000 |                       89’094 |              791’693 |
8
| Month 6                |                   45’000 |                       84’094 |              920’787 |
9
| Month 7                |                   45’000 |                       79’373 |            1’045’160 |
10
| Month 8                |                   45’000 |                       74’918 |            1’165’078 |
11
| Month 9                |                   45’000 |                       70’714 |            1’280’792 |
12
| Month 10               |                   45’000 |                       66’745 |            1’392’537 |
13
| Month 11               |                   45’000 |                       62’999 |            1’500’536 |
14
| Month 12               |                   40’000 |                       59’464 |            1’600’000 |
15
| Year 2                 |                  500’000 |                      500’000 |            2’600’000 |
16
| Year 3                 |                  400’000 |                      250’000 |            3’250’000 |
17
| Year 4                 |                  300’000 |                      125’000 |            3’675’000 |
18
| Year 5                 |                  200’000 |                       31’250 |            3’906’250 |
19
| Year 6                 |                  200’000 |                       15’625 |            4’121’875 |
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Stability Pool Emissions
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. 
f(n)=∫0n2000000365log(2))∗12x365dxf(n) = \int_{0}^{n} \frac{2000000}{\frac{365}{log(2))}}* \frac{1}{2}^{\frac{x}{365}} dx
f(n)=∫0n​log(2))365​2000000​∗21​365x​dx
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Last modified 12d ago
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Contents
Token utility
HDG distribution
HDG Emissions