A Walkthough to HYN Economic Model

From a business perspective, the best strategy is often to choose a long-term perspective to pursue a maximum benefit of individuals.
Tokens are issued as economic incentives to motivate effective cooperation among the various roles within the blockchain ecological community, including users, developers, miners and investors. Higher service contributions to the network will increase the value of token rewards and attract more participants. As a result, a sustainable and trusted token economic model is vital to a blockchain project.
Consensus produces value
Throughout history, gold, silver and copper were circulated, exchanged or deposited as currencies without approval of official institutions, as a consensus on the value of precious metals has been reached. In modern capitalist society, diamonds, luxury goods, collectibles also have reached consensus in various markets through the re-definition of “rareness” and marketing techniques. For example, diamonds represent love, and jade represents eternity. However, if we think further, the basic and the most valuable consensus should be circulated globally like currencies, just like time and space.
Spatial data serves people’s daily needs in every aspect. Transportation, food ordering, accommodation booking, shopping, and emergency seeking all require accurate positioning information. In the Internet era, spatial information integrates online demands and offline service, and help achieve business scalability, efficiency and personalization. For instance, Eleme helps deliver on-time door-to-door food service; Didi provides efficient taxi service; Airbnb offers private accommodations for various travelling destinations; and map Apps provides real-time navigation for drivers.

The pervasive use of spatial data is the foundation which formed the value of decentralized map. In the previous year, Hyperion launched a white paper and various map products, including the decentralized map service network Map3, and Titan privacy map, so that the whole community could understand what a MapChain is, and what the team is trying to achieve in future. While the HYN economic model aims to tell the community how to earn benefits while contributing to the network.
Hyperion’s economic model will support the scalable applications of the decentralized map ecosystem by attracting more to participate the location blockchain service network. For business users, economic model lowers the cost and improve the efficiency and security of open source location data; while for participants, they receive economic rewards for their network contributions via HYN incentive model.
HYN economic model
At the application level, if we perceive the ERC20 token standard as for transaction and allocation of assets, then the HYN economic model is the allocation standard of transactional structure for all location blockchain service. For instance, the percentage of sales revenue received by Amazon sellers follow the trading structure set by the platform; similarly, the coupons customers get for shopping are also based upon certain transactional structure.

Maximize the value of token through the self-evolutionary ecosystem
Hyperion’s economic model is designed based on a mobile P2P network to achieve a sustainable map service ecosystem. The total supply of HYN is 10 billion. 70% of the merchant deposits will be burnt as fuel for map services in the next 8 years. By then, 3 billion HYN will be circulated within the network, from which 2 billion will be user deposits and 1 billion will circulate in secondary market. The 2 billion deposits consist of 880 million on-chain deposits and approx. 1 billion off-chain deposits. HYN halving occurs every two years. The first halving will start in September 2022, and all HYN will be mined by 2085.
Simply put, Hyperion service network is composed of on-chain and off-chain service. For off-chain network, any HYN holders can earn economic benefits in the following two ways. Firstly, each candidate needs to deposit a certain amount of HYN into Titan wallet to join service node election; Secondly, other HYN holders who will not participate the election can join other quasi-service nodes to help them win the election, and share a service reward with them. Service rewards originate from 30% of the deposits from business users who bought HYN secondary market to obtain the location service. Candidates can choose to be one of the following type of service nodes — cloud (Map3 nodes) or fog (Titan nodes). Map3 node provides services via PC. To be a could requires an individual candidate to deposit as least 200,000 HYN and collect 800,000 from other HYN holders to reach 1 million HYN deposit to the network in total. In return, a cloud node will receive 20% of the service rewards, and HYN contributors who joined the service node will share 80% of the service rewards. If a service node is discovered with bad behaviors, the 20% rewards will be confiscated, without affecting other participants.
Fog is expected to be online in June 2020. A fog node candidate is required to deposit at least 20,000 HYN individually, and collect 80,000 from other HYN holders to participate the election. Both types of service nodes share the same award distribution mechanism. Besides, to increase the reward incentives, Hyperion will provide a subsidy to increase service rewards until September 2020. The maximum monthly service income will reach 3% during the first year. By June 2020, when fog nodes become alive, the monthly income is expected to be 2%. All subsidies will be distributed out before the launch of MainNet in Sep 2020. Then the monthly rate of reward e nodes will return to 1%.
Sufficient service credibility and HYN deposits will enable the service nodes to further become the next level of on-chain nodes (Atlas nodes) candidates to achieve higher rewards. The on-chain service incentives include both service rewards and mining rewards, with an average monthly return between 2.5%-4%. The annual rewards is around 35%. The deposit threshold for a service node candidate is at least 2 million HYN, then it needs to collect 8 million HYN from other service nodes. The details will be officially launched in September 2020.

According to the fixed supply of HYN, the required amount of HYN deposit will decrease when the number of nodes grows. For example, when there are 2,000 nodes within the network, each person needs to deposit 1 million HYN to be a Map3 node candidate; but when there are 4,000 nodes, the deposit requirement will fall to 500,000. The rate of return will be calculated based on the amount of required deposits.
A sustainable economic model helps facilitate the service capability and scalability of decentralized maps ecosystem for daily use. As more people join the network, the POI based intermediaries will gradually move to MapChain, and will eventually work as smart contracts to conduct decentralized businesses.

For example, intermediary service providers based on POI (restaurant or store location), such as trip advisors, Uber, Airbnb etc., normally earn commission fees based on information services provided (such as promotion fees, ranking fees, etc.). However, with location blockchain services, MapChain will open the map location data within Map3 network for all to freely use and manage, which means delivery riders, or Uber drivers no longer need to get orders from intermediary platforms, but rather directly receive service requests from restaurants and customers via various smart contracts. Hence, the original intermediary fee earned by the centralized platforms will be rewarded to each contributor of the map ecosystem. In this case, the service nodes and all HYN contributors. MapChain will be the cradle of thousands of smart contracts based on location data.
