HEX is like Bitcoin with a proof of work change. BTC and HEX are analogous. Bitcoin and HEX are peer to peer networks that store and transmit value. In Bitcoin, miners buy mining hardware and electricity from companies. In HEX miners buy HEX from other HEX holders then use time to mine. HEX is Proof of Wait instead of Proof of Work.
Inflation Incentivizes Behavior
Bitcoin Inflation pays miners.
HEX Inflation pays stakers.
Incentives are Divided Up
Miners mint new BTC by their % of the total hashrate.
HEX stakers mint new HEX by their % of the total shares.
Bitcoin mining = HEX staking
Your Hashrate = Your Shares
Difficulty = Total shares
Buying more miners = Share price increases
Block reward = Inflation + Penalties
In Bitcoin total hashrate is value invested in the protocol, it protects against 51% attacks.
In HEX Share marketcap is value invested in the protocol, it protects the HEX price against selling.
(HEX staked * Share price = HEX Share marketcap.)
(HEX currently uses ETH for it's 51% attack protection.)
Competing for Incentives
Each Bitcoin mining machine earns less and less BTC over time as difficulty rises. Profits must be reinvested in newer hardware, as older hardware becomes unprofitable.
In Bitcoin new miners have an advantage over old miners, because they're more energy efficient.
In HEX it's reversed. Old stakers have an advantage over new, because the share price measured in HEX only rises.
HEX's share price used to be $0.56 and went up to $6706 so far.
Beating the Competition
BTC miners get paid more when other miners turn their machines off.
HEX stakers get paid more when other stakers close their stakes.
HEX stakers also get a bonus if others close their stakes early or late.
Bitcoin inflated from 0 BTC to 18,000,000 BTC over 10 years with high inflation earlier on
HEX completed it's high inflation phase in the first year.
Few recognize that Bitcoin's price went up faster when it was a younger network with higher a inflation %, because multiplying user count matters more.
HEX stakers make a multiple higher profit in HEX from staking than the annual inflation rate. (Currently 40% APR on average vs inflation of only 3.69%.) To HEX stakers inflation is a benefit, not a cost. HEX's inflation is delayed as it's only paid on ended stakes, and many last 15 years (4.8 years avg.)
Staking HEX is easy. It doesn't require any know how, facilities, electricity bills, hardware, or paying one of a few companies and hoping they send you working hardware in a timely manner, and it clears customs, and it works in your facility, and your breakers can take the load.
Because staking HEX is so easy, and there's no sell pressure on HEX's price to pay facilities, hardware, maintenance, electricity, decommissioning of old hardware and buying new.
There are no middlemen in HEX - HEX is not a ponzi scheme. Only you interact with the smart contract.
Compounding is simulated by a share price that measured in HEX only rises making each Tshare more expensive in HEX over time. It's more computationally efficient to reduce new stakes' shares by writing a single new share price than it would be to write thousands of compounded shares profit to existing stakers. This is similar to how Bitcoin updates it's difficulty every 14 days.
Imagine watching your staked HEX earn more HEX, while the share price goes up and the USD/BTC/ETH price of HEX goes up too. The gains multiply by each other.
Bitcoin and HEX
You don't need to understand most of the things on this page. If you love details and understanding things very deeply, this is the place for you.
- HEX is like a notepad showing everyones' HEX balance and requiring their passwords to spend.
- HEX is the first high interest blockchain certificate of deposit. HEX virtually lends value from stakers to non stakers, as staking reduces supply, causing positive price pressure on unstaked coins.
- You mint shares by time-locking HEX (staking), with bonuses of 20% per year, up to 3x for longer and 1.1x for larger. The HEX needed to create a share (share price) goes up every day or two, simulating compounding interest.
- Shareholders profit from the 3.69% annual inflation, early & late end stake penalties.
- HEX is a hybrid proof of work(POW) and proof of stake(POS) system. Stakers are paid inflation in HEX while ETH miners receive small amounts of ETH to perform your HEX transaction.
- HEX conforms to the ERC20 standard to maximize interoperability and security. Every HEX consists of 100,000,000 Hearts (1 with 8 zeroes or 100 Million.)
- Hardware wallet support: Trezor and Ledger are integrated with both MetaMask (for HEX and ETH) and you can use apphex.win/ledger/ ledger wallet for HEX. Your private keys stay safe inside your hardware device this way.
- HEX is easily extensible because smart contracts can be built on top of it or reference it.
- HEX works with distributed exchanges and atomic swaps easily.
HEX's code quality is excellent. HEX employs bit packing with bitwise shifts and caching for gas efficiency. Kyle Bahr wrote an explanation of the system, code and how it works. It is considered the HEX whitepaper. HEX is decentralized and peer-to-peer.
You are the network! Only you generate your private keys, mint your HEX and rewards. Without you the code just sits there. HEX's code is totally open to view and verify and you can run it many ways.
You can review HEX's code here: HEX.sol.
HEX's contract address is 0x2b591e99afE9f32eAA6214f7B7629768c40Eeb39. Do not send anything directly to this address unless you're giving it away.
Direct Ledger Nano S HEX interface: apphex.win/ledger/
MetaMask supports both Ledger and Trezor hardware wallets.
Ledger MetaMask instructions |
Trezor MetaMask instructions.
HEX might be the first coin to ever have two independent security audits. HEX even has a third audit by a mathematician on HEX's economics. Chainsecurity.com and CoinFabrik.com are among the top contract auditors in the world. Take a look: HEX security audit by CoinFabrik.com | HEX Economics Audit by CoinFabrik.com
. Chainsecurity's audit is private. Security auditors are like book editors. The author is the more important part of a book.