There are two ways to make money from HEX: you can buy tokens in order to hold them and sell them at a future profit or stake them in a long-term deposit and receiving a guaranteed return on your investment.
Staking is nothing more than freezing a certain amount of HEX tokens, which works in the same manner as a term deposit, only that it operates in the cryptocurrency ecosystem. You can stake tokens for a period of between 1 and 5555 days. How does it work? Itís simple. I stake, for instance, 10 000 HEX for one year. For the duration of the contract I cannot withdraw the funds under threat of financial penalty, quite like in the case of a traditional bank deposit. When the term expires, the investment ends and I receive back my 10 000 HEX tokens and the return on my investment. This is perhaps the first of the financial products ever to be frozen for a period of 15 years, with deposits worth many billions of dollars. The average length of a HEX staking is almost seven years! HEX is an economic breakthrough worthy of a Nobel Prize.
Stakers receive HEX on a daily basis, although they cannot withdraw it until the end of the agreement they signed with the HEX contract. The system automatically calculates how much HEX our investment generated over the last 24 hours. Once the stake is over, the system user can unstake his or her coins and sell them at the current price, hold them while waiting for a better price on the market or stake them again.
HEX has a lower inflation rate than Bitcoin, even after Bitcoin halved its inflation rate twice in its first 10 years of existence. HEXís inflation rate fell to less than 3.69% within a year, while it took Bitcoin more than 10 years. HEX stakers are paid out of inflation and can maintain its price through staking. Bitcoin miners earn money by selling the coins they mine, which lowers the price of BTC. Bitcoin miners donate money to companies that produce equipment or electricity, much to the detriment of the environment. HEX investors earn far more in interest from their investments than the rate of inflation. For HEX stakers inflation is a benefit, not a cost.
The distinguishing feature of HEX is that the stakers mint their own rewards. This results in a situation where the investor becomes indebted to himself or herself because there are no intermediaries in the HEX system. The investor himself or herself runs the code to mint his or her own rewards. The strength of HEX is its users because token is created thanks to them. It is worth noting that mining rewards are dynamic and similar to those in Bitcoin. Rewards in HEX are paid out regardless of whether the currency records a decline or an increase. The investor does not have to worry about whether he or she will receive it. Funds for payouts are taken from a pool that depends on our shares in the overall system. The payout is based on your shares divided by their total number in the system.
An important aspect of HEX is receiving a bonus which significantly increases the return on investment because it is much easier to receive a 40% bonus than to buy 40% more Bitcoins. Breaking a contract before time results in a penalty imposed by the system. This can amount to only losing some or all of the profit generated or even the entire amount invested! This depends on the length of the contract and when it was broken. This is part of the so-called truth mechanism. If you declare that you want to stake funds for, letís say, 3 years, then keep your word and do not break the contract after one year or suffer the consequences. Penalty funds in the form of HEX tokens are added to the payout pool at the end of the contract.
For example, a contract is terminated ahead of schedule and a penalty of 10 000 HEX is imposed. The interest pool for investors is increased by half of this amount or in this case 5000 HEX. The other half goes to the so-called Origin Address, a crypto wallet linked to the HEX launch. The contract accumulates a payout pool each day. The payout pool is based on a daily inflation of 0.009955% of the total coin supply. This gives 3.69% over 52 weeks with the interest rate calculated daily. At the end of the contract, it accumulates the total payout from your holdings and withdrawals for the entire investment period. The contract mints the HEX and credits them to your account.
Read more in my book ĎSecond Crypto Revolution: Build Generational Wealth With Richard Heartís Crypto Ecosystemď.