HSK is the HashKey platform token based on the ERC-20 standard protocol. It incentivizes contributors within the HashKey ecosystem and supports its growth. ^[1][3]

Overview

HSK is designed to incentivize contributors within the HashKey ecosystem, including users and partners, by offering various applications. Holders of HSK may benefit from: ^[2]

HashKey Exchange:

• Reduced trading fees: Trading fees settled in HSK may receive discounts of up to 0% on maker fees.

• Waiver of withdrawal fees for selected digital assets.

• Priority access to upcoming token subscriptions.

• Early notifications and access to new products and product upgrades.

HashKey Custody:

• Custody fee discount or waiver

HashKey DID:

• Cover expenses for on-chain verifiable credential service fees.

• Purchase limited edition NFTs and AI-generated avatars.

HashKey DEX:

• Reduced trading fees.

• Access to private sales of exclusive tokens.

• Participation in the market maker program.

• Voting privileges for the listing of reputable Web3 projects.

• Enhanced allocation in airdrop distributions from partner projects.

HashQuark:

• Increased node validation service rewards

HashKey Capital:

• Research Report Release

Supply Model

HSK has a supply capped at 1 billion units, issued in line with real economic activity. New HSK enters circulation through a Total Rewards Pool, limited by a Reward Value Cap tied to net profits. This cap is set based on a multiple of generated profits, ensuring responsible issuance. HashKey adjusts the cap in response to market conditions and communicates changes to HSK holders regularly. ^[2]

HSK is distributed to ecosystem users and partners based on an incentive mechanism. There will be no sales or fund-raising activities involving HSK. ^[3]

HSK's supply model includes a burn mechanism, allowing HashKey to use 20% of net profits from HSK-participating businesses to buy and burn HSK tokens, potentially leading to a deflationary asset model. The main sources of supply growth are the Ecosystem Growth Pool and the Team Pool, with the former divided into different distribution programs. ^[2]

Ecosystem Growth Pool

Ecosystem Reward Programs

The allocation breakdown is as follows: ^[2]

• Business Growth Partnership Reservation Release Incentives: 520 million HSK (52.0%)

• Genesis VIP Incentives: 78 million HSK (7.8%)

• Other Contributor’s Rewards: 36 million HSK (3.6%)

• Early User Incentive Rewards: 16 million HSK (1.6%)

HSK is distributed to reward users contributing to the growth of the HashKey ecosystem. For example, HSK is minted and distributed from the Ecosystem Growth Pool for: ^[2]

• Early User Incentive Rewards: Incentivizing early users who sign up and transact on HashKey Exchange.

• Trading and Liquidity Rewards: Incentivizing users trading and providing liquidity on HashKey Exchange.

• Other Contributor's Rewards: Rewarding users contributing to business growth.

Marketing

HSK is allocated for marketing activities aimed at boosting brand awareness, acquiring users, and fostering community growth.

Business Development

HSK is used to incentivize ecosystem growth through partnerships and new projects.

Team Pool

HSK is distributed as rewards to HashKey staff members who contribute to the business's growth.

Reserve Pool

The reserve pool provides additional protection for ecosystem users for contingency purposes.

Burning

HashKey employs an offsetting issuance mechanism (burning) to safeguard HSK holders from the dilutionary effects of rewards-based increases in HSK circulating supply. This involves HashKey purchasing an amount of HSK equal to 20% of net profits from specified HashKey platform businesses and permanently burning the acquired HSK from HSK’s supply. Initially, these specified businesses comprise HashKey’s licensed exchange (HashKey Exchange), with further business lines and products to be included in the future. ^[2]