Introduction

HEX is a project to recreate a common banking product called a Time Deposit. It is an ERC-20 token and fully automated in the form of a smart contract on the Ethereum blockchain.

What is Hex Cryptocurrency

HEX cryptocurrency is a new financial tool that launched on the Ethereum network on December 2, 2019. HEX is an ERC20 token designed to replace the Certificate of Deposit and be a store of value. The blockchain counterpart for this financial product is used in traditional financial markets.

First, HEX wants to clarify some background. In the traditional financial industry, Certificates of Deposit (CDs) are offered by commercial banks and usually provide a slightly higher interest rate than would be available in a standard savings or checking account. However, to achieve this higher interest rate, depositors should not withdraw their funds. The condition is that the funds should not be withdrawn generally for one, three, or six months, and sometimes up to ten years. The funds are government-guaranteed and Certificates of Deposit are an easy way to earn a little extra interest – without risk – on unused funds that you would otherwise hold in a current account. Outside of the U.S. CDs are commonly referred to as ‘term’ or ‘time’ deposits. Obviously, HEX is designed to pay interest to participants who lock their coins through a stake.

HEX coin is a FREE AIRDROP for Bitcoin holders. It is not an ICO, and you do not need to pay anything at any time of the claiming process. The HEX CLAIM process can be safely done OFFLINE, and distribution to Bitcoin holders is 10,000 HEX per 1 BTC. Bitcoin holders could claim HEX only during the first year of launch. During this period, 90% of the claimed HEX is locked for one year. At the end of the first year of release, all coins that have not been claimed by Bitcoin holders are distributed to other HEX users whit active stakes.

How does it work?

HEX cryptocurrency uses the Ethereum network for the transaction layer (sending and receiving HEX coin, as well as interacting with the HEX smart contract), while the consensus code and staking mechanism are contained in the HEX smart contract.

HEX allows the user to stake his HEX coins for a share of the issue of new HEX coins or inflation. In addition, it contains features designed to stimulate behavior that encourages price appreciation and disincentivize practices that promote harm to the price. That is, the HEX smart contract penalizes interested parties who terminate their pledge ahead of time and accordingly rewards them for staking more significant amounts of HEX for more extended periods.

HEX creator, Richard Heart, explained that HEX is the world’s first blockchain Certificate of Deposit, allowing users to stake their tokens in return for interest. Users can enjoy interest payments ranging from 3.69% (if 99% of the total supply is locked) up to an incredible and massive payout of 369% if only one percent of the total amount is staked. The interest payments are made in HEX, which means that the monetary value of such an amount depends entirely on the market value of HEX at the time of maturity.

As explained above, the Certificate of Deposit (commonly referred to as a savings account) is one of the most popular banking products. And in short, HEX is the first blockchain CD. However, HEX is designed much better than a CD because, with a certificate of deposit, you will not gonna get paid more if others decide to close earlier their CDs.

Staking

Staking is invoking a function on the smart contract to commit your HEX for a time period. Currently the unit of time is days. I may Stake 10,000 HEX for 10 days, for example. During this time I may not access those HEX, but at the end of 10 days I end my Stake and receive my 10,000 + payouts. This is the Certificate of Deposit functionality.

Payouts are drawn from a pool based on my share of total Shares. The Term “Shares” used here intentionally because staking bonuses are calculated as a scaling of your HEX into Shares. Meaning, if I stake 10 HEXand qualify for 40% bonuses, then my 10 HEX become 14 Shares. The payout is based on Shares divided by the total number of Shares, not HEX divided by the total number of HEX. This is important because it means that accruing bonuses is how to get the best payout, perhaps even more economical than starting with more HEX. It’s much easier to get a 40% bonus than to buy 40% more bitcoins.

Share Price

In order to ensure that longer and larger stakes pay better over time, there is a pricing mechanism built into the contract. Every time a stake is ended the gains for that stake are calculated in the form of a share price which all future stakers will pay to convert their HEX into shares. An important note here is that HEX’s base unit is the Heart. Hearts are to HEX as Satoshis are to Bitcoin. There are 100,000,000 Hearts per HEX.

The share price at launch will be 1 share per Heart. The way the price moves is related to return on investment for a stake. For example, if on day 5 someone ends their stake and has a 20% gain, it translates into a share price of ~1.2 Hearts per share. If that user wishes to stake again, their Hearts will be divided by 1.2 to determine their number of shares. Since Ethereum only supports integer math, this is accomplished using a scalar.

Security and Advantages

HEX cryptocurrency is faster and cheaper to transact and more secure in some ways than Bitcoin because it uses Ethereum security. HEX is built on top of Ethereum, which is a Proof of Work blockchain with more decentralized hashing power than Bitcoin. BTC also devalues its price by delivering inflation to the miners who need to sell those Bitcoins in the market to pay for the electricity and equipment they use. That leads to a drop in price. Contrary to BTC, the HEX code is an immutable and open source. It is an externally audited token. No bugs and the system is reliable. Hex has security and economy audited from Chainsecurity and CoinFabrik. Hardware wallets like Trezor and Ledger can be used with MetaMask for HEX and ETH.

HEX is designed for those who stake longer, so they will benefit the most. How? By eliminating intermediaries, users can transform Ethereum directly into HEX. Kick-start adoption gives Bitcoin Owners free HEX. That helps small market players, penalizing Bitcoin whales. Early claimers receive bonuses, and late claimers get penalties. Referrers and those referred are also paid bonuses. Unclaimed coins and interest are paid to those who have locked their HEX on time. Longer-term and larger stakes get more shares, and the price per share only increases. HEX equalizes incentives, so the more people participate, the better off everyone is!

Tracking HEX