Tokenomics
Token Overview & Utility
$HYRO is the native utility and governance token of the HYRO Protocol with a fixed total supply of 1,000,000,000 (1 billion) tokens. The token has multiple core functions within the ecosystem:
Primary Utility Functions
Access Control
- Required for creating and entering trading challenges
- Pays for vault creation and management
- Enables participation in protocol governance
Fee Payments
- Challenge entry fees
- Vault creation fees
- Performance fee settlements
- Protocol service fees
Staking & Rewards
- Liquidity provision incentives
- Protocol fee share distribution
- Enhanced governance weight
- Exclusive feature access
Fee Structure Breakdown
| Fee Type | Amount | Collection | Distribution |
|---|---|---|---|
| Challenge Entry | 0.5-1.0% | Paid in $HYRO | 70% Treasury / 30% Burn |
| Performance | 10-20% | Of profits | 70% Manager / 20% Treasury /10% Stakers |
| Protocol | 10% | Of all fees | 70% Treasury / 20% Stakers / 10% Burn |
| Vault Creation | Fixed amount | Paid in $HYRO | 100% Treasury |
Token Distribution
Initial Allocation
| Category | % | Purpose |
|---|---|---|
| Protocol Treasury | 30% | Protocol development, grants, and ecosystem growth |
| Team & Advisors | 15% | Core team incentives and strategic advisors |
| Community Rewards | 25% | Staking rewards, challenges, and community initiatives |
| Initial Liquidity | 10% | Market making and exchange listings |
| Trade-to-Earn | 20% | Performance-based trader incentives |
Vesting Schedules
Treasury (30%): 48-month linear vesting
Team & Advisors (15%): 36-month linear vesting
Community Rewards (25%): Dynamic release based on protocol activity with initial 6-month lockup.
Initial Liquidity (10%): Locked forever.
Trade-to-Earn (20%): Performance-based distribution with 4-year emission schedule.
Emission Schedule
Base Parameters
- Initial Annual Emission Rate: 2% of remaining rewards pool
- Maximum Monthly Inflation: 0.5% of total supply
- Minimum Emission Floor: 1M tokens monthly
- Dynamic adjustment based on protocol metrics
Emission Multipliers
| Metric | Weight | Multiplier Range |
|---|---|---|
| Total Value Locked | 40% | 0.8x - 1.5x |
| Trading Volume | 30% | 0.8x - 1.4x |
| Active Challenges | 20% | 0.9x - 1.3x |
| Staking Ratio | 10% | 0.9x - 1.2x |
Deflationary Mechanisms
Fee Burning
- 10% of protocol fees burned
- Challenge entry fee partial burn
- Inactive vault token burns
Staking Locks
- Minimum 30-day stake period
- Early unstaking 10% penalty
- Penalty tokens burned
Implementation Status
Current Status: The $HYRO token and tokenomics system described above are planned for future implementation. The protocol currently operates without a native token while core features are developed.
Timeline: Token implementation is planned for Phase 2 of protocol development, expected to be implemented alongside the governance system after completion of core protocol features.
Note: All tokenomic parameters are subject to governance adjustment through proper DAO voting procedures. Initial parameters will be managed by admin multisig until full DAO transition is completed.