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All You Need to Know About Hashkey's $HSK Token and Airdrop

by BSC News

June 18, 2024

chain

A significant portion of HSK’s total supply is allocated to an Ecosystem Growth Pool to drive business growth, partnerships, and community engagement.

HashKey Group, an Asia-based cryptocurrency financial services firm, announced to officially list in the third quarter of this year. 

HSK is designed to integrate seamlessly across HashKey’s diverse range of products and applications. The community can look forward to an airdrop before the listing, offering early adopters a unique opportunity to become part of the HashKey ecosystem.

What is HSK?

HSK is the core of HashKey's Layer 2 Ecosystem Chain, known as HashKey Chain. Based on Ethereum's ERC-20 standard, HSK supports a wide array of applications within the ecosystem, ranging from decentralized finance (DeFi) and GameFi to artificial intelligence (AI) and the metaverse.

Key Utilities of HSK

HSK offers multiple benefits to its holders:

  • Community Rewards: Incentives for active participation within the ecosystem.

  • Exclusive Access: Early access to token pre-sales and new product launches.

  • Transaction Fee Discounts: Reduced fees on HashKey Exchange.

  • On-Chain Governance: Participation in decision-making processes affecting the platform.

Tokenomics and Supply Model

HSK has a capped supply of 1 billion units. The supply model is designed to ensure fiscal responsibility by issuing new HSK only in relation to real economic activity. This includes a Total Rewards Pool tied to net profits generated by HashKey’s businesses.

 

New HSK will be issued through a Total Rewards Pool, the size of which is capped in relation to the net profits generated by HashKey’s businesses – a concept known as the “Reward Value Cap.” This cap will be set based on a multiple of generated net profits, ensuring fiscal responsibility. 

 

HashKey will frequently evaluate this multiple and the value of the Reward Value Cap, communicating all changes to HSK holders regularly.

Ecosystem Growth Pool

To foster the growth of its ecosystem, HashKey has allocated 65% of HSK’s total supply to the Ecosystem Growth Pool. This pool, consisting of 650 million HSK, is subdivided into specific programs:

  • Business Growth: 520 million HSK (52.0%)

  • Partnership Reservation: 78 million HSK (7.8%)

  • Release Incentives: 36 million HSK (3.6%)

  • Genesis VIP Incentives: 16 million HSK (1.6%)

In addition to the controlled issuance, HashKey employs a burn mechanism to further manage HSK’s supply. The firm has the discretion to use 20% of net profits to purchase HSK and subsequently burn the acquired tokens from the outstanding supply. 

 

Over time, this mechanism has the potential to make HSK a deflationary asset, as the pace of burning could exceed the pace of new issuance.

 

The airdrop scheduled for late June is aimed at rewarding contributors to the ecosystem. This includes early user incentives, trading and liquidity rewards, and other contributor rewards.

HashKey Group’s Expansion

Following a successful $100 million Series A funding round earlier this year, HashKey Group is on a growth trajectory. With expansion plans into the Middle East and Europe, the company aims to become a major licensed crypto exchange globally within five years.

 

HashKey Group’s core businesses include HashKey Capital, HashKey Cloud, HashKey Tokenisation, and HashKey NFT. The company also operates HashKey Exchange, a licensed crypto exchange in Hong Kong, and HashKey Global, a global exchange launched in April. 

Disclaimer

Disclaimer: The views expressed in this article do not necessarily represent the views of BSCNews. The information provided in this article is for educational and informational purposes only and should not be construed as investment advice. BSCNews assumes no responsibility for any investment decisions made based on the information provided in this article

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