HLQT Tokenomics

Introduction to HLQT Allocation

HLQT, the core token of the HLiquity protocol, plays a vital role in encouraging user involvement and upholding the protocol's integrity. With a genesis-minted total supply of 100 million HLQT tokens, the distribution strategy aims to achieve equitable and decentralized dispersal.

Community: 40%

The HLiquity Community is entitled to 40% of the entire token supply, equaling 40 million HLQT. Half of this allocation is dedicated to the rewards pool for those contributing to the Stability Pool, adhering to an annual halving formula: 18,700,000 * (1–0.67^year), to generously benefit early participants and promote sustained commitment and 1.3 million HLQT to liquidity providers in the HCHF/HBAR pool on SaucerSwap V1, with rewards for staking HCHF:HBAR-LP tokens distributed over the first 18 weeks post-launch. The residual 20 million HLQT are reserved to support various significant activities within the HLiquity community.

Team & Collaborators: 19.2%

To recognize the foundational team's efforts in HLiquity, 19.2% of HLQT tokens, totaling 19.2 millions, are allocated to the Team and Collaborators. These tokens are subject to a 1-year lockup, with a quarter vesting after the first year and the rest gradually vested monthly over 36 months, reinforcing their ongoing dedication to HLiquity's progress.

Advisors: 2%

HLiquity allocates 2 millions HLQT tokens, representing 2% of the total issuance, to current and future advisors who contribute strategic guidance and insights. These tokens are locked for a year, with a vesting schedule of a quarter after the first year and the remainder vested monthly over 36 months, securing their continuous involvement in HLiquity's development.

Investors: 30%

Early investors are allocated 30% of the token supply, amounting to 30 millions HLQT, acknowledging their initial support and contribution. In a first phase, 8 millions HLQT are offered over Headstarter. Another 22 millions are offered after the IDO to long-term investors. These 22 million tokens have a 1-year lockup period to ensure a lasting commitment to HLiquity's vision and growth.

Community Reserve: 5%

A Community Reserve is established with 5 millions HLQT tokens, or 5% of the total issuance, to foster community engagement through grants, hackathons, and events, driving active participation in the HLiquity ecosystem.

Service Providers: 3,8%

A total of 3.8 millions HLQT tokens, or 3.8% of all tokens issued, are set aside for service providers who have supported and will continue to support the HLiquity protocol through various stages, including before its launch.

Conclusion

The HLQT token allocation strategy is designed to stimulate engagement, honor the contributions of early supporters, and secure the long-term dedication of the core team, advisors, and investors, facilitating informed participation decisions within the HLiquity community.