The Tokenomics

Tokenomics is just a fancy way of telling everyone how the token works, is distributed, and the breakdown of any pre-sales and remaining tokens for the rest of us investors.

Let’s first talk about the old tokenomics. The old token HEDGE was distributed in a unique way to ensure that each part of the ecosystem had a fair distribution of rewards.

General Summary:

• 40% — Straight to Liquidity
• 32% — Provided in a private sale to early investors
• 10% — Team tokens
• 10% — Staking Rewards
• 8% — Marketing

Token Supply:

The initial supply of Hedge was 1,000,000,000 (which is not really a lot, but it is).

The holders of the hedge token were rewarded with 8% of the buys/sells as a reflection in a blue-chip token (Like BTC, ETH, ADA etc).

Within the buy/sells of this token was also what is referred to as “slippage”. In most tokens, this is rather low, but the dynamics of this token called for a minimum 12% slippage, sometimes ranging all the way up to 17% depending on volume.

This minimum 12% slippage was then further divided between rewards for holders and the liquidity pool.

12% — Total Transaction Tax (on buys and sells)

8% — Rewards in blue-chip tokens back to holders in proportion to the amount held

4% — Added to liquidity

So what does all this really mean? It means that when you buy or sell, Hedge, you’re getting taxed 12% each time. So in theory, to buy and sell, you’re getting taxed 24%. Seems like a lot? It is… but you do get some of that back in rewards so it somewhat worked out.

But, what it didn't allow was for real trading volume. At that high of a tax, traders and quick investors are much less likely to come in and out of the coin to drive volume. As an investor and holder, we were able to see this over the past few months. The community itself has been amazing as holders, but volume sucked.

How the token is paired.

Currently, Hedge’s liquidity is paired with BNB (or wBNB) which is the same thing. What happens here is that when BNB goes up or down in price, it also affects the natural price of Hedge.

In theory, this could be great especially if BNB is on the way up. However, when it goes down, it takes the price of Hedge down with it.

So what’s the plan for the new token and the tokenomics?

Well let me first go through the tokenomics and how they'll work, then ill discuss the why and how.

Token Supply:

Going down from 1,000,000,000 to 100,000,000 (a 90% decrease). This is great in many ways. Less supply means higher pricing (in theory).

The details of distribution: 40% of the token supply will be given to bonders of the token. The next article in this series will detail bonding and what it means so just know that 40% is going towards that.

2% is going to be distributed to the dev team and 2% is distributed to the marketing team. Both of these will be on a ⅔ multi-sig wallet so no dumps can occur by any single person. These wallets will both be used to pay the team and for marketing efforts moving forward.

The other 56% of the token is reserved for rewards distribution. I know what you’re already thinking “what happens when the supply runs out”. Simple, we buy back the token on the open market and repeat the cycle.

The new token is designed for holders so what we want is to be forever able to buy back more tokens and distribute them as rewards to the holders.

So how does the 40% distribution work? It’s a little complicated but what we want to see happen is all 88 million outstanding hedge will get bonded into the new token. Then proportionally, you will be issued the new token. While you’ll have fewer actual tokens, they will be the equivalent dollar price as the old Hedge token.

Remember, only 40% of the tokens are being distributed in the bonding event, so this means even the “whales” who have a large share will have proportionally fewer tokens and thus have far less effect on the price over the short and the long term.

For example, if a whale has 10% of the current Hedge project, and they bond in, the max they would have would be 4% of the new project. Again while the dollar amount remains the same, 4% has a FAR less effect on the overall system than 10%. This means no more dumps.

Additionally, there will be a max cap on the amount any single wallet can sell in a day. This will be capped at 0.5% of the total outstanding tokens. While this won't matter if a whale has multiple wallets, it does add another layer of protection to the ecosystem so no one wallet can massively dump at one time.

Token Pairing:

Instead of pairing this new token with BNB we are also pairing it with BUSD. This means that one side of the liquidity pool will always remain stable while the only thing that will affect price, is the price of the new token itself.

The Taxes:

The big question: BuT WhAt AbOuT ThE TaXeS. We’re bringing those WAY down. Down to 5% in fact at least on sells. On buys, only 4%. This token is not designed to give reflections (rewards) in the same way as the old token so the higher tax is not necessary.

What the entire team has realized was that in theory, the rewards are a great thing, but obviously, without volume, they mean nothing. Bringing this tax down will encourage traders to come in and actually create that volume on a large scale.

Rewards:

But how we will get rewarded then? Two articles from this one we will discuss the liquidity pool. What they are, what they mean, and how you’ll be rewarded from them, how you’ll stake them and generate even more tokens.

This will actually provide you with rewards in two ways. One from the LP itself and if they’re staked, you’ll also generate rewards from the protocol itself. More info on this to come.

To summarize:

• 1,000,000,000 down to 100,000,000 tokens
• 40% Genesis Bond
• 56% Rewards Pool
• 2% Marketing
• 2% Team
• BNB Pairing switched to BUSD pairing

Big things ahead ladies and gentlemen.