What is the Token Economics of HYFI?
What is the Token Economics of HYFI?
This post covers the (1) Project Overview (2) Issuance & Emission, and (3) Utility of Hybrid Finance Project (HYFI).
Token economics (tokenomics) studies the design and implementation of blockchain-based tokens. Understanding token economics is crucial for anyone considering investing in or using a particular token.
This post covers the token economics of the Hybrid Finance Project (HYFI).
1. Project Overview
Hybrid Finance Project (HYFI) has built a suite of globally scalable solutions for hybrid finance - embedded, decentralized, social, & sustainable.
HYFI solutions can be divided into 3 categories:
Future Money Wallet
EM-Card
Hybrid Finance Blockchain
HYFI Whitepaper is at: https://www.hyfi-project.com
Future Money Wallet
Future Money Wallet (FMW) is a custodial wallet, price discovery engine, and marketplace for:
NFTs backed by physical collectibles
Loyalty Tokens
Fractional Licenses of Intellectual Property (FLIPs)
Subscription Tokens
EM-Card
EM-Card is a suite of no-code solutions for businesses to engage, educate, support, and reward customers. Solutions include
1-click Loyalty Programs
1-tap Fake-detection
An EM-Card can be accessed through NFC / RFID tags, hyperlinks, and QR codes.
Hybrid Finance Blockchain
Hybrid Finance Blockchain is a permissioned blockchain with 100% support for Know Your Customer (KYC), Anti-money Laundering (AML), and Countering the Financing of Terrorism (CFT) regulations.
2. Issuance & Emission
Token issuance is the creation and distribution of tokens as part of a specific event or offering e.g. airdrop, ICO, reverse ICO, IEO, IDO, DAICO, ETO, STO, and SAFT. Token emission is the ongoing process of creating and releasing new tokens into circulation e.g. through mining or staking.
HYFI is a deflationary token with a hard cap of 1 billion.
HYFI Token issuance & emission is as follows:
5%: Private Sale
15%: Public Sale
5%: Testnet incentive program
15%: Mainnet incentive program. To ensure decentralization, a single person/entity can run a maximum of 25 validator nodes.
10%: Airdrop
10%: Architects, developers, and partners who are part of the HyFi ecosystem.
25%: HyFi Foundation which is responsible for consumer protection, dispute resolution, and ecosystem development.
15%: Ecosystem Development Fund for grants to startups building innovative solutions on the HyFi Blockchain. This fund is managed by the HyFi Foundation.
3. Utility
Tokens derive value from the utility of the network that they are used in. In other words, the value of a token is determined by how useful it is within the specific ecosystem in which it is used. This can be based on a variety of factors, such as:
the size and activity of the network,
the demand for the goods & services that can be purchased with the token, and
the perceived value of the network to its users.
As the utility of the network increases, the value of its associated tokens is likely to increase as well.
HYFI Tokens are subscription tokens for the HYFI Ecosystem. Here are some of the use cases of HYFI:
Creation of NFTs backed by physical collectibles like sneakers, luxury handbags, paintings & sculptures, coins & stamps, watches, cars & bikes, etc.
Transfer of NFTs backed by physical collectibles.
Listing fee & transaction fee for Loyalty Tokens.
Listing fee & transaction fee for Fractional Licenses of Intellectual Property (FLIPs) of art, books, movies & music.
Listing fee & transaction fee for Subscription Tokens.
Usage of EM-Card-based Loyalty Programs by businesses.
Usage of EM-Card-based 1-tap Fake-detection by businesses.
Transaction fees for the Hybrid Finance Blockchain.
HYFI Tokens can be held in the custodial Future Money Wallet or on non-custodial wallets like Metamask.