HIVE : Governance token

Governance and the In-Social Currency of the platform

HIVE serves as the governance token and is the social currency of the platform on both Sui network and Movement M2 chain.

Key utility and use-cases

Once deposited in the HiveProfile, HIVE tokens facilitate various pivotal activities within the DegenHive ecosystem:

  1. Governance participation: Users can deposit HIVE in HiveAsset NFTs which can then be staked to obtain voting power in protocol governance.

    • Users earn degenSUI (on Sui Network) or MOVE (on Movement’s M2 chain) alongwith HIVE as staking yield for governance participation.

    • Voting power is determined by the following formula -

HIVE is required for participating in governance and earn pro rata share of protocol yield

  1. Subscription Payments: HIVE facilitates subscription payments between HiveProfiles, with payments settled pro-rata based on the subscription’s dollar denominated price.

    • The HIVE to dollar exchange rate is provided by a TimeWeighted Average Price (TWAP) oracle.

HIVE is used to settle subscription payments for special access to NFTs on the social graph

  1. Entropy Points which limit user-action: The number of permissible user actions per epoch on DegenHive’s social graph is constrained by the user’s HIVE balance and voting power.

    • A portion of a user’s HIVE balance is temporarily locked proportional to the entropy points expended during the current epoch.

Entropy points to limit user action across dapps

Long-Term Sustainability

The following mechanisms are designed to ensure the long-term sustainability of the HIVE token within the DegenHive ecosystem:

  • Deflationary Mechanism - A portion of subscription fees are burned, reducing HIVE supply.

  • Lock-and-Burn Model - Recurring Honey-Stream auctions generate revenue in SUI on the Sui network and in MOVE on Movement’s M2 chain which are added as to SUI-HIVE and SUI-MOVE AMM pools with LP tokens being burnt, perpetually locking liquidity in these pools

Honey Stream keeps perpetually adding liquidity in SUI-HIVE and SUI-BEE pools

HIVE Supply distribution

The HIVE has a total supply fixed at 1 billion units. This supply is strategically allocated across various segments of the ecosystem to ensure balanced growth, incentivize participation, and secure the protocol’s long-term viability. The distribution is as follows:

  • Launch Phase (20%): Includes airdrops, lockdrops, and an infusion phase rewards aimed at attracting early users and liquidity providers

  • Honey-Stream Incentives (10%): Engagement with honey-streams are incentivized as they help power the protocol’s sustainable economic model through a Lock-and-Burn model.

  • Protocol Treasury (40%): Utilized for liquidity provider incentives and to fund platform growth initiatives, as governed by the protocol’s governance processes.

  • Development Team (20%): Reserved for the core DegenHive development team to incentivize ongoing development and maintenance. These tokens are vested over three years and grant the team voting rights in protocol governance, although they do not accrue staking yield during the vesting period.

  • Early Backers (15%): Set aside for early backers and investors who supported the project’s initial phases.

HIVE Supply distribution
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