HALO Network’s Tokens Utility (HO, HOS, HOR)
HALO Network is a blockchain specifically built to support the growth of DeFi DApps. That is a hefty objective, so it’s no surprise to see the distributed ledger map out strategies and products aimed at making the blockchain conducive for DeFi to thrive.
Cryptocurrencies are considered the livewire of a blockchain, which explains the rise of native tokens. Where the average blockchain relies on a single token, HALO Network has a trinity.
What Is HO?
This is the actual native token of HALO Network. Just like you pay Ethereum transaction fees in ETH, HALO Network takes theirs in HO.
A network’s native token is a lot of things. It’s the fuel for operations on that blockchain. On HALO Network, HO is the native token. All transactions you do on HALO Network require fee payment in HO.
For instance, you might want to swap on HOSWAP, which requires having some HO in your Web3 wallet for gas fees. Of course, HOSWAP has its native token, HOS, but you pay fees in the network’s token, which is HO.
The HALO bridge will allow for the cross-chain conversion of assets, making it compatible with HALO Network. An example is converting USDT to HALO-pegged USDT, the bridge lets you do this. Of course, it comes with a small fee in HO, HALO Network’s native token.
Consensus voting is another area where the utility of HO is glaring. Holders of HALO Network’s native token can take part in consensus voting on cross-chain transactions. With the expected popularity of the HALO bridge, there will be a significant need for voters to affirm these cross-chain transactions. It’s also worth highlighting that token freezing happens during the voting process, which helps reinforce the credibility of the process.
Taking part in consensus voting on HALO Network might come at a steep price — holding and staking HO — but you get to share in the fees generated from cross-chain conversions.
HALO Oracle is another area where the utility of HALO Network’s native token is palpable. The credibility of a node is valued based on the number of HO tokens pledged. As a node pledges more HO tokens, data submitted and converged by such nodes are used in providing the most accurate data that’s used by HALO’s numerous products.
So if you intend to run a node that will provide data for HALO Oracle, having a large quantity of HO is crucial towards meeting that target. It’s another interesting utility of HO. Many have questioned why node data sorting is done based on HO staking, but it’s logical. The penalty is greater if the data is flawed, so a node with large HO staking has a lot to lose. As the node’s HO staking drops, the penalty is less severe, exposing the oracle to inaccurate data.
You can also see the utility of HO in another HALO Network product: HALO Loans. Through HALO Loans, borrowers can take loans using a valued asset as collateral. You can take such a loan with HO as collateral. This creates a massive utility for the Network’s native token.
Anyone looking to borrow other assets like ETH, DAI, and others can use their HO as collateral. The catch is that the value of the collateral has to be more than what you are lending. Else the transaction will not go through. The use of smart contracts to execute these transactions means there’s no hoodwinking the system.
Lending bids will be a lot, and HALO DAO will have the final say. HO holders will get the chance to decide what loan requests get granted — another interesting utility of HO, HALO Network’s token.
You can stake HO and earn staking rewards of up to 120% APY. This utility of HO shouldn’t surprise many as the blockchain operates a modified POS consensus model.
What Is HOS?
HALO Network’s main DEX, HOSWAP, has its native token, HOS. This isn’t new — we have seen DEX launch their tokens for different purposes. HO is currently trading and listed on Coinmarketcap.
Governance of the DEX needs interested voters to have HOS in their Web3 wallet. You can submit proposals on changes you desire on the DEX, as long as you hold some HOS tokens. Voting on proposals will require having some HOS tokens as well. Your voting power is equivalent to your HOS holding.
What is HOR?
The yet-to-be-launched HOR token is HALO Network’s reward token.
Any reward program where free tokens are deemed vital, you can expect HOR to be the cryptocurrency used. For instance, HOR will be airdropped to incentivize adopters of the HALO Network when the time is right.
Also, all marketing events that require sharing of tokens — a common occurrence in the crypto space — will be done using HOR.
Having three different tokens is not as bad as many make it out to be. As long as they have delineated functions — which is something HALO Network has done for its tokens — then there shouldn’t be any problems.
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