💰Overview
Financial aspect of the Horaverse
Last updated
Financial aspect of the Horaverse
Last updated
The term “tokenomics” is a symbiosis of two major concepts, both related to crypto: token and economy. It represents all the necessary factors that are fundamental to one crypto project, such as its creation, distribution, supply and demand, burn mechanisms etc.
Simply put - the study of token economics is known as tokenomics.
Horaverse's tokenomics concept is built on a unique and complementary ecosystem in which its main currency Hora Coin ($HCOIN) is absolutely zero pre-minted by developers.
This means that our entire ecosystem is founded on a healthy premise sustainable for long-term projects.
As developers, we will not pre-mint the main currency of Horaverse as we want to avoid any kind of manipulation of the market, speculation of doing that, or suppressing project growth. Also, the financial and web3 app system of the Horaverse will be backed by ETH fund, to be more precise - Hora Miners (NFT Rigs) & Hora Coin.
The usability of NFTs is described in dedicated sections under NFT City Miner.
To assemble the Hora Miner, players as well as investors will have to pay a certain amount of $ETH to smart contract, those $ETH will not go into our wallets, rather it will go directly into a Fund. $ETH from this fund will guarantee the minimum price of Hora Miners and $HCOIN! This will be in the smart contract especially made for those purposes.
For the assembly of one Hora Miner, you will need to pay a certain amount of $ETH. Which gives them a certain value instantly. Each Hora Miner, once assembled, has a certain lifetime depicted in percentages. That percentage actually represents the lifetime of one particular miner.
With Hora Miner, you will mine $HCOIN, a premium currency of the Horaverse, and gain profit in it. At any moment, you can recycle your Hora Miner, and get a return on your investment. There will be a small fee for each recycle.
These fees will be there as a control for players/investors not to take the advantage of the system. Fees will be pumped back into ETH Fund, to grow it even more.
Let us explain this with an example:
The rest of the invested $ETH will remain in the contract to guarantee the price of $HCOIN you have mined.
As players/investors mine $HCOIN, Hora Miner will lose its health over time. In return, players will receive our premium cryptocurrency. Since the value of Hora Miner is in $ETH, this leads us to the conclusion that $HCOIN’s value is in that percentage of deterioration of Hora Miner, which is in $ETH in ETH Fund. This will be presented in a special smart-contract for those purposes.
Once Hora Miner reaches 0% of its lifetime, you will be left with profits in $HCOIN, which correlates to the exact invested amount of $ETH.
In real life, things deteriorate over time, making a wear-and-tear real concern. This also reflects on real-life mining rigs. We replicated this process and used it for our NFT Rigs (Hora Miners). Details about this will be presented in the series of blog posts on our Medium, so follow us there!
Crypto in the ETH fund has an opportunity cost, and we have come up with a good long-term solution for our project's longevity and our community which is to use that crypto for ETH 2.0 staking. This seems to be a native solution and the most secure option since the ETH Fund smart-contract will be deployed on Ethereum.
As we manage to gain a profit from staking, it will go directly into The Fund, which would raise the guaranteed price of Hora Miners and $HCOIN!
Process of re-investing and staking gives our web3 app NFT City Miner the role of a unique and unprecedented gamified ETH 2.0 staking platform!
As The Fund is one of the key things in Horaverse ecosystem, our vision is to make it decentralized.
With that in mind, the Horaverse will have its own governance structure which will monitor the resource allocation and investments. The governance power lies in consensus and will determine the future of the ecosystem. If governance decides that the best utilization of ETH Fund is one particular DeFi, we would gladly allocate the portion of the resources into desired platform.
Currently we are working to find a most suitable governance solution, and you can expect regular updates from us on this topic.
