What is Hex?
Hex Explained To 4 Different Age Groups
Written by: Mohammad Aman & Jason (Crip-Toe Kings)
*** Cryptocurrencies are highly volatile. Those who invest in them should be prepared to lose all their money. NOTHING www.howtopulse.com states, shares, expresses, or allude to should be considered financial advice or recommendations of action. This blog is intended for educational and entertainment purposes only. All content contained within is all just my own opinion and experience. Consult a professional) for any tax, accounting or legal related questions you may have***
In recent times, the cryptocurrency market has gained so much attention from the resurgence of Bitcoin to new all-time highs, to the explosion of NFTs and Meme coins like Shiba and of course mad gains! Between all that, HEX was created and is like no other crypto, it has a unique design that could earn you a high yield (denominated in HEX) that is often difficult to explain. This is why we’re here to help you explain it to four different age groups.
HEX was launched back in late 2019 and is one of the most appreciating assets in its first two years. HEX has about 400 thousand wallets as of January 2022 which is roughly 0.1% of the 300 million+ total crypto wallets, compared to Bitcoin holders in roughly 40% of all crypto wallets. Regardless of the prices of coins, we are still very early in this revolution. As the rate of new users keeps rising, you and your loved ones would need to understand this sooner or later and even if they might not be buying, it’s great to understand the way these things work.
We’ll start with the most basic explanation that kids will understand and move on to teenagers, adults, and finally the professionals.
Level 1 – Hex for Children
Imagine you have one gummy bear. You can eat it now or wait two hours. If you wait for two hours, the candy factory will have made more gummy bears and because you don’t eat it now, they will give you another gummy bear for every extra hour you wait. Now you can share it with your family and friends. Imagine how many gummy bears you will have if you wait one week! Yummy!
Hexy waited for One days!
Level 2 – Hex for Teenagers
What is HEX?
HEX is a new digital currency that exists on the internet. It is more trustworthy because there are no middlemen like banks or big institutions controlling it. It was created by Richard Heart and its code cannot be changed or altered. Banks can change their rules any time they wish which can negatively impact some people. In HEX you don’t have to worry about any of that! Everything is available for you to view in the system which is very comforting when it’s your hard-earned money.
HEX uses one of the best technologies invented called “Blockchain” (a decentralized, secure system). Hex is mainly used for saving. If you have a goal whether it is buying a new gaming console, car, or just making more money you can choose to lock up your HEX until your chosen date. This way you earn more Hex until then which gives you full control and autonomy over your money. You can be making a lot more money until you are ready to cash out. Some people use it to give themselves the future the gift of more money. You can lock up a few bucks for your birthday and get a lot more by then.
HEX is a great way to save as it can have a lot higher reward compared to your bank! The longer you lock up, the higher your reward will be in HEX terms. But note the reward’s magnitude depends on the price of HEX, which fluctuates. It can go up and down. It could even stay down for a long time or forever. This is new tech, so be aware of the risks too and don’t invest more than you can afford to lose.
Level 3 – HEX for Adults
Before diving into what HEX is, We’ll have to discuss what makes blockchain technology so innovative. Blockchain is a system of recording information in a way that makes it difficult or impossible to change, hack, or cheat the system. A blockchain is essentially a digital ledger of transactions that is duplicated and distributed across the entire network of computer systems on the blockchain.
HEX is an innovative approach to a very popular banking product!
Certificates of Deposit (CDs) are common investment tools managed by banks. CDs are used by hundreds of millions of people worldwide to earn interest on their money when they agree to not touch it for a predetermined amount of time. This has created a market valued in the trillions of dollars. HEX has taken the concept of CDs, added significantly higher average interest rates (in HEX terms), removed banking fees, and turned it into a decentralized cryptocurrency.
By locking any amount of HEX you choose for a period of time between 1 and 5555 days, you “stake” your deposit and gain interest every single day. The average APY is roughly 10-37% while traditional bank CDs average less than 2%. HEX has a set 3.69% inflation rate that is only given out to stakers, providing these high yields. It literally pays out HEX to stakers. The value of that HEX can fluctuate (sometimes even quite significantly).
No central entity, bureaucracy, or overhead costs, and no bonuses awarded to anyone besides users who stake HEX. A simple to use, high-interest tool, HEX makes you the bank.
Add to that the benefits of being on the blockchain, HEX is more transparent as all transactions are publicly viewed on the blockchain. HEX’s code is extraordinary. Prior to launch, the code passed 2 security audits, an economics audit, & most importantly you hold your own keys, removing any counterparty risk.
Level 4 – Hex for Professionals
Hex is built on the Ethereum blockchain. It is designed to monetize people’s time. Hex is more similar to bitcoin than a bank CD because it replaces BTC miners with stakers that receive the rewards. Instead of miners having to dump the price to cover their energy bill, stakers are the ones receiving this new supply.
Its immutable code has a few functions which are:
• A 3.69% inflation rate is paid out to the people that chose to stake it.
• Stakers lock up their coins for any number of days from 1 to 5555.
• Hex will reward longer stakes and bigger stakes with a bonus. Hex rewards the most important behaviour which is holding and the bonuses reflect that
•The current average APY for staking HEX is 10%-37% which is determined by how much of the Hex supply is staked currently (9.5% of the supply is currently staked).
The Power of T-Shares:
•T-Shares stand for trillion shares. When HEX is staked, it is burned & converted into shares throughout the duration of the stake. The incentivized bonuses mentioned above are rewarded in terms of additional shares when you stake. Based on your percentage of shares versus the total amount, the daily inflation rate of HEX payouts are pulled from a pool & distributed accordingly.
• In Hex’s contract there is a profitability check that adjusts the share rates up whenever a stake ends. This happens when the stake reaches its maturity, the contract is set to ensure that no one can get the same amount of shares for their HEX unless they re-stake more HEX, or for a longer duration.
• This design is to incentivize staking earlier & make it outperform long-term staking with frequent short stakes as well. When you end your stake, your daily payments are tracked throughout the duration, calculated & totalled, then the new HEX is minted into your wallet.
Ending Stakes Early (Emergency End Stake)
If a staker decides to end their stake before it matures, they will be penalized in one of the following ways.
- If the stake has reached half of its term then the interest will be penalized while the principal can be fully withdrawn.
- If they haven’t served half of their stake length then their interest and a small portion of the principal will be penalized.
These penalties are paid to the stakers that remain in the system (Additional yield).
To learn more about the exact math that is used to calculate the end stake fee, please look at the source provided below (HEX Contract in Layman’s Terms)
HEX has one more innovative feature, which gives you the ability to view the future! Hex is built on the blockchain you can see when people’s stakes will end. Which allows further game theory and strategizing the right time to end your stake. Imagine knowing years ahead that Elon for example would be selling some of his Tesla stock. You could have made a better trade. This information and a lot more is publicly available in independent built sites that pull on-chain data and present them.
HEX has better security than almost all cryptocurrencies
- Two security audits & an economics audit performed prior to launch by third parties.
- The code for HEX is immutable (No admin key, No modification can be made).
- The code is open to the public to review and is one of the only cryptos that has been 100% operational for over 2 years with 0 downtime, 0 bugs, and 0 hacks on the system.
- You are always in control of your own keys & are continuously educated through the creator & community about the best security practices to protect your assets.
The tokenomics around HEX is designed to incentivize those with HEX to hold the price up (by locking up and not selling) for extended periods of time & to easily weather the extreme volatility of the crypto market. HEX is a little over 2 years old now, & at the time of writing, is ranked #5 by market cap with $63.4B, there is $13.7B staked between 73.4k unique wallets. The average stake duration is 6.05 years. That is the average as we see hundreds of thousands of dollars to millions getting locked up every day for the max duration of roughly 15 years.
HEX Stats As of 1/6/2022:
What makes HEX decorrelated from Bitcoin and Ethereum?
The arguable decorrelation is due to the fact that its number one liquidity pair is USDC at roughly 94%, instead of ETH or BTC. Without pairing to another volatile asset, HEX’s price can move freely on its own. If liquidity was provided with ETH, we would see a stronger correlation between ETH’s price & HEX’s price as they would move relative to one another.
Through the tens of thousands of coins in the cryptosphere, HEX stands out from them all. As the ONLY financial asset that has people locking up their money for an average of 6 years, HEX is a revolutionary product. This asset has no central entity, bureaucracy, or overhead costs, and prestigiously awards only stakers with bonuses & amazing returns. As a simple to use, high interest investment too, HEX makes you the bank earning the inflation in the market
The price of HEX has done 10,000x within its first two years since launch. But it should be remembered that it has fallen in price over 85% several times and even up to 95% too. Taking into account the difference in the number of wallets compared to the wider crypto market, HEX can be considered to be pre-viral in some sense. The upside can be huge and the use case of being a store of value can be very valuable.
The price of HEX has done 10,000x within its first two years since launch. Held by roughly 0.1% of all crypto holders, HEX is still previral. With holders locking up their money for up to 15 years, the project is still considered in the “early adopter” stages by some.
UPDATE – since this article was written, then macro picture has changed markedly. The FED has implemented Quantitative Tightening, making money more expensive and a war is sadly brewing in Europe, with inflation metrics pumping. Overall sentiment is bearish and the market is decided lacking in liquidity as compared to the height of the 21/22 bull market. Some see this as a buy-the-dip opportunity, but others see the market as risk-off for now. So we want to add a note of caution and to re-emphasise our insistence that coins experience massive drawdowns and one should never invest more than one is willing to lose. Be safe out there and good luck!