- HEX tokens are time deposits made over the Ethereum network.
- HEX tokens are usually locked up for a fixed period for the holder to later receive a share of the remaining tokens in a pool.
- It is said that HEX could potentially replace digital time deposits.
Developed by early Bitcoin adopter Richard Heart, HEX tokens are time deposits made over the Ethereum network. How it works is that HEX tokens are usually locked up for a fixed period, which is generally at least one year, only for the holder to later receive a share of the remaining tokens in a pool.
It is said that HEX could potentially replace digital time deposits. A time deposit is a deposit in a bank account with a date of maturity before which that deposit cannot be withdrawn or withdrawal available on notice only. To receive the stated interest rate, the deposited funds must remain in the account. They pay a higher rate of interest as compared to a traditional savings account and acts as an alternative to the same.
HEX is an ERC-20 token which means that these tokens are smart contracts built over the Ethereum network. There are two ways to obtain HEX. One way is by holding Bitcoin before the Bitcoin blockchain snapshot which was held on December 2, 2019.
A transaction must be signed as proof of ownership of the private keys for a particular address. This can be done in five steps as mentioned on the website which is Install MetaMask on your browser, then Go to the ‘Claim’ tool on wallet.hex.win. Open your BTC wallet and sign the statement given to you by the Claim tool and Paste the signature into the Claim page. Lastly, click ‘Submit’.
The second way is to send ETH to the “adoption amplifier” which is a smart contract that converts ETH to HEX daily. Referral links can also be used to increase staking by 20%.
The only way for HEX’s price to rise is by an increase in demand. This can be achieved by providing more incentives to lock up their HEX for an extended period after which network effects may emerge.
For example, when HEX is taken out of the staking pool, the amount of HEX/ETH in the last withdrawal will become the price for anyone looking to purchase HEX through the adoption amplifier.
Therefore, it is difficult to predict whether or not HEX will be valuable in the future because it depends on demand which is the main thing behind price appreciation.