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by starburst
January 8, 2024

HEX token – everything you need to know before buying

Table of Content

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1. What is HEX

HEX is a cryptocurrency built on the Ethereum network that was designed to promote and reward the most successful and important fundamental market behaviour of investing: buying and holding. Investors that hold long term, delay their gratification and demonstrate their commitment to the long-term success of the product. HEX rewards investors who follow this good investment behavior (i.e. Staking their tokens for a period of time) by providing them with a substantial, above average yield. Yield is generated “trustlessly” via the HEX smart contract and is derived from the inflation of the token supply. The token’s inflation is fixed and set in the immutable HEX code. All the inflation is then distributed, as a reward in HEX tokens, ONLY to those investors who are staked.

2. Inflation: HEX vs. Bitcoin

Bitcoin (and most other cryptocurrencies) inflates its currency by generating Bitcoins through it’s “mining” operation. Similarly, HEX generates inflation, except without miners, but via the immutable smart contract. This inflation is distributed and proportionately shared amongst all the investors who stake (Stakers) their HEX. Stakers accumulate HEX every day for the entire duration of their stake. HEX not only creates wealth and value from price appreciation, but also from continuous coin accumulation for Stakers

3. What makes HEX a superior cryptocurrency?

– Finished Product 

– Immutable Code

– No Admin Keys

– Censorship Resistant

– 100% Uptime

– Zero Bugs

– Trustless Yield

– Dedicated, Intelligent and Helpful Community

– Multiple User Interfaces

– 100% Decentralized

– No Counterparty Risk 

– 2 Security Audits and 1 Economic Audit 

4. HEX Shares explained


In HEX, in order to participate in the yield distribution, you
must “Stake” your liquid HEX. Staking is the act of locking up your HEX for a fixed period of
time. When you stake, your HEX is converted to “Shares” (the liquid HEX is burned for newly created Shares). Your Shares represent your respective percentage of the overall distribution of the yield… ie, ”your piece of the pie”

• Total # of Shares in the staker pool = 100
• You own 2 Shares
• Therefore, You receive 2% of the total daily payout (in HEX)
each day
• Yield is made up of the inflation (3.69% APY of total supply)
plus penalties from Emergency End Stakes/Late End Staking
• T-Share = a Trillion shares
• B-Share = a Billion shares


Calculation of the # of Shares you will receive:
The amount of HEX to be staked/”Share Rate”Share Rate is the amount of HEX required to acquire a Trillion Shares (T-Share) (ex. Share Rate (Dec 9, 2021) = 19,678 HEX/T-Share)

To encourage people to stake longer and bigger (larger amount) there are 2 separate bonus features: 
1. Longer Pays Better
• You receive 20% more “Effective HEX” for each year you stake
• Effective HEX – This is used to calculate your Shares
• This bonus has a maximum of 200% additional “Effective HEX” (i.e. 10 year stake)

• The Effective HEX is then used to determine your # of Shares
2. Bigger Pays Better
• The larger the amount of HEX you stake, the more you make
• You can receive up to an additional 10% Effective HEX (capped
at 150 million HEX)


*Bonus Example:

• 100,000 HEX : 5yr Stake : Share Rate = 20,000 HEX/T-Share

• Effective HEX = Principle + (Principle*(years of Stake*20%))

• 100,000 + (100,000*(5*20%)) = 200,000 Effective HEX
• Formula : # of Shares = Effective HEX/Share Rate
• 200,000 Effective HEX/20,000 = 10 T-Shares
• NOTE: the amount of T-Shares remains constant for the
duration of your stake.

Note: The Bigger Pays Better Bonus has been ignored for simplicity in this example.


Fundamental Principle : A long Stake will outperform multiple
successive short Stakes

Problem : In the development of HEX, it was realized that placing short Stakes and using the yield to compound back into a new Stake & repeating this multiple times (over months/years) would create a scenario where this compounding effect would outperform a single long Stake over the same duration.

Solution: HEX developers designed an ingenious feature that will
force the Share Rate to continuously rachet up incrementally
(i.e. Share Rate will never go down).

Solution Rule : When your Stake ends, you cannot create a Stake
with equal parameters (same amount of HEX and same length of
stake) and receive the same # of Shares.


*Stake Start:
• # of T-Shares = # of HEX/T-Share Rate
• # of T-Shares = 100,000/20,000
• # of T-Shares = 5
• Yield (at Stake maturity of 30 days) = 5 T-Shares x 6 HEX/day x 30 days = 900 HEX

Recalculation and check of the share rate
• At Stake maturity: In order to satisfy the Rule, The contract will perform a calculation where the amount of Shares is now FIXED and uses the new amount of HEX (Principle plus Yield) to solve for new T-Share rate. This is expressed as follows.
• # of T-Shares = # of HEX (Principle + Yield)/T-Share rate
• Rearrange and solve for T-Share Rate
• T-Share Rate = # of HEX (Principle + Yield)/# of T-Shares
• T-Share Rate = 100,900HEX/5 T-Shares
• T-Share Rate = 20180
• Notice that 20,180 is incrementally greater that 20,000 (original Share Rate)
• This is your new T-Share Rate. It is then compared to the existing system global T-Share Rate. If this rate is greater, it will set the new global T-Share Rate for you and everyone else. If not, (ie: global
rate is higher than your new rate), then you will need to use the global rate if/when creating a new Stake.
•This recalculation and check is performed at the conclusion of every future Stake. This is how the TShare rate continuously ratchets up.

Note: In the example, Bigger pays better was ignored for simplicity

5. Why HEX is NOT a Ponzi Scheme?

Ponzi generates returns for older investors by acquiring new investors, who are promised a large profit at little to no risk. Investment scheme is premised on using new investors’ funds to pay the earlier investors.

HEX returns (yield) is generated trustlessly via the immutable smart contract. Returns (yield) is not affected by new users. The yield (/yield) is 3.69% of the total supply and shared amongst the stakers. In reality, the more people who buy and stake HEX, the lower the daily payout (yield) will be for each staker.


This document was created by Crypto Goose 

This document and it’s authors are not affiliated with PulseChain, PulseX or HEX in any form. It and it’s authors do not receive compensation from, or engage in paid advertising on behalf of Richard Heart, his representatives or anyone else.
Nothing in this document is investment advice, financial advice or advice about taxation. For advice on these matters please contact a registered adviser.

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