Token Economics

Our philosophy

The token economy behind a cryptocurrency is what makes or breaks a project. It is something that can be created only once, because all parameters will be set in stone in the smart contract afterwards.
You can see the token economy a bit like the frame of a house. If the frame has been built solidly, robustly, durably and sustainably, it can withstand any storm no matter how strong or frequent. On the other hand, if the frame has been built with a weak, soft, and unsustainable frame it will fall apart after one big storm and will thefore fail the whole construction of the house.

What we came up with

The team has a great deal of experience in the research of token economies of other projects. With this experience they put together the best parts of all these projects to make something robust and sustainable, for years to come.
To begin with, the flow of the token within the ecosystem had to be perfect. Therefore the token needed a circular economy which can be visually seen on the page: 'flow of the token'. A balance between buyers, sellers and hodlers had to be created in combination with low inflation. Buyers and sellers to sustain the trading volume and hodlers for creating deflation on the network by getting a bigger stack with every smart contract interaction.
Next to that, all HFT tokens have been freely given away from the beginning. A fair launch with a low market cap of $900,000 was the main goal which was achieved successfully. The only ones that paid for their tokens were the Angel investors but they had the opportunity to buy a big chunk of HFT from the beginning on, when liquidity was still low. Therefore, they had to sacrifice something and paid double the listing price. Also they have lock-ups and vesting schedules. You can not have it any more fair than that.
As there is always a inflationaire pressure as long as not all tokens are in circulation yet that is a risk in getting our token accepted by the market, therefore we created a distribution schedule that after four months already 62.5 percent of all HFT tokens will be in circulation. The other 37.5 percent will be freed through lock-up and vesting schedules over a period of 2.5 years.
All features being released within the Hodl Finance ecosystem must ensure the growth of adoption and eventually to outpace the inflation.