Hexagon Finance Token Economics
$FLAKE Distribution
FLAKE is Hexagon Finance’s token. It has a total maximum supply of 100,000,000,to be distributed according to a fixed supply, decaying emission model.
No presales or VCs are involved in the token distribution.
Airdrops & Liquidity Bootstrapping Pool (LBP)
5% of the Total Max Supply of FLAKE (5,000,000 FLAKE) are allocated for airdrops and to fund the Liquidity Bootstrapping Pool.
The Liquidity Bootstrapping Pool will use the allocated FLAKE (less than 5,000,000 FLAKE), along with their equivalent worth in UST, to initiate a public fundraising activity, for liquidity bootstrapping purposes.
Team
6% of the total maximum supply will be allocated to the team. The tokens in this slot will be locked for 6 months upon launch, and linearly released in 24 months.
Partners
Hexagon Finance is incubated by Terra and Balancer. 12% of the total maximum supply will be allocated to the two partners. The tokens in this slot will be locked for 6 months upon launch, and linearly released in 24 months.
Treasury
12% of FLAKE tokens are allocated for Treasury Reserves, for marketing, partners, integrators, insurance and other teams in general that contribute to the Hexagon Finance ecosystem. In general, the FLAKE tokens for Treasury Reserves will have a linear vesting schedule, with 20% released yearly.
Liquidity Mining Emissions
65% of the tokens are reserved as incentives for protocol liquidity contributors.
Token Economics
The Hexagon tokenomics is built around the idea of building a healthy circle for the $FLAKE token which will support the platform’s overall growth. This mechanism rotates around FLAKE holders staking FLAKE to get veFLAKE which represent holders benefits, rights and voting power when it comes to key decisions.
How to get FLAKE and veFLAKE
The main way to get FLAKE is by adding liquidity and staking in mining pools to get rewards, as 65% of the tokens will be released as rewards for liquidity suppliers. However, FLAKE can also be obtained by joining our LBP auction prior to the launch and by participating in Hexagon’s whitelists and airdrops.
Once users have their FLAKE, they can stake it and receive veFLAKE — the surest way to reward long-term FLAKE Stakers. veFLAKE grants holders access to the distribution of protocol fees, participation in the protocol governance and boosted rewards in the FLAKE mining pools.
Users can unstake at any time, but their FLAKE will be claimable only after 3 months from unstaking.
It is also important to notice that veFLAKE is an ERC20 token on C-chain, meaning that veFLAKE can be transferred. Therefore, it will be possible to build a secondary market for veFLAKE. This is different from, say, veCurve, which can not be transferred.
Rewards to veFLAKE holders
Hexagon will accumulate 80% of the transaction fees charged in our pools for liquidity suppliers, while 20% will be accumulated as protocol fees. Of that, 50% will be used to buy back FLAKE, to be used as rewards to the veFLAKE contract.
This is to ensure Hexagon will deliver our community advantageous transaction costs compared to other Dexes.
For example, if a weighted pool is charging 0.25% for transaction fee, 0.2% is accumulated for liquidity suppliers and the other 0.05% will be collected for protocol fees.
Boosting power from veFLAKE
veFLAKE can be used to boost rewards in mining pools. As a rule of thumb, the more veFLAKE is staked, the more the boosting effect will be.
After staking FLAKE in the FLAKE single-coin staking contract, and depositing the veFLAKE (vested FLAKE) into the whitelisted mining pool, liquidity providers will be able to boost their mining APR.
veFLAKE can be converted back to FLAKE at an increasing exchange rate, based on the reward rate.
For more details, please see our dedicated page.
Voting power
Listing tokens on Hexagon is a permissionless operation that requires no central approval. However, which liquidity pools are rewarded as mining pools and how much they yield as basic rewards is decided partly by the core team and in part through voting.
To be more specific, the Hexagon liquidity mining incentives operate in 3 tiers.
Tier 1 pools, or core liquidity pools, are centered on UST and key to trading volume. It will have a 50% allocation of the total FLAKE incentives. The pools and emissions are decided by the core team.
Tier 2 covers a group of liquidity pools, whose incentives and allocations are decided by the community governance. They will have a 40% allocation of the total FLAKE incentives.
Tier 3 pools refer to newly-listed projects. They will benefit from 10% allocation of the total FLAKE incentives, with new projects potentially enjoying incentives of FLAKE tokens, for a predetermined period of time. (Normally 2 weeks.)
Our voting system will be made public shortly, with the governance going live after launching. Aside from the voting power for issues related to rewards, other topics that need to be governed will be subject to voting.
Yield Booster
Hexagon is open to collaborating with third party protocols as yield boosters. Such partners might be interested in collecting veFLAKE from users to accumulate boosting power and to get better APR, as well as voting power. Such collaboration will benefit both Hexagon, as a service provider, and our yield boosters, along with their users.
Emissions schedule
The following Flake Emission Schedule is a simulation designed according to our token vesting programs. Since the exact details of the boosting mechanism cannot be precisely calculated beforehand, please be aware that the numbers reported here may change as time goes by.
Note: ‘Rewards After Boosting’ in the graph above depicts the liquidity mining emissions, as the incentive for providing liquidity in the whitelisted liquidity pools in the Hexagon protocols.
