# HONEY == Health

### Overview

HONEY is a closed-loop-token designed to mirror natural beehive mechanics on-chain, serving as the vital health metric for dragon-bees within the DegenHive ecosystem. It features a **3% burn tax on transfers / trades**, representing the natural consumption rate of honey within a hive. HONEY is used to power up your Dragon-Bees, boost their health, and unlock rewards within the DegenHive ecosystem.

> **Note:** The design of HONEY and its usage mechanics are inspired by natural beehive activities, where dragon-bees accumulate HONEY to sustain themselves, particularly through the metaphorical 'winter season'.

### Dragon-Bee Integration

* Genesis eggs contain randomized pre-locked HONEY amounts
* Earned HONEY (from protocol revenue or emissions) splits into:
  * 15% automatically locks with dragon-bee
  * 85% becomes claimable by owner
* Additional HONEY can be locked to boost health points
* Locked HONEY is only retrievable by sending dragon-bee to HiddenWorld

### **Supply Distribution**

The total supply of HONEY tokens is set at 42 billion, allocated as follows:

* **50%** reserved for liquidity provider incentives.
* **30%** allocated to the team and early backers, with a vesting period of 1-3 years.
* **10%** earmarked for bootstrapping and initial launch activities.
* **5%** set aside for the protocol treasury.
* **5%** designated for genesis dragon-bee eggs.

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## **Utility and Use Cases of HONEY**&#x20;

HONEY tokens are integral to the DegenHive ecosystem with four primary uses:

1. **Liquidity Incentives**: HONEY tokens incentivize liquidity providers to contribute to pools, facilitating token distribution to the community post-launch.
2. **Health Enhancement**: By locking HONEY with dragon-bees, users can boost their dragon-bees' health points and earn additional HONEY as rewards.
3. **Governance Participation**: Users can employ the health points of their dragon-bees to participate in and influence the allocation of HONEY emissions across AMM pools.
4. **Value Assurance**: Dragon-bees can secure a minimum value claimable by their owners, achievable through sending the dragon-bee to the Hidden World.