Understand the rights and distribution mechanism of HashKey Group's ecological points HSK in one article
HashKey Group announced the plan to issue ecological points HSK, of which 65% will be used for ecosystem growth, and 20% of the net profit from specific businesses will be used for the repurchase and destruction of HSK.Author: Jiang Haibo, PANews
HashKey Group announced its plan to issue the ecological points HSK during the Hong Kong 2023 Web3 Festival. At the end of October 2022, the Hong Kong Financial Secretary released the "Policy Declaration on the Development of Virtual Assets in Hong Kong," considering the liberalization of cryptocurrency trading and the issuance of licenses to cryptocurrency exchanges, which will officially be issued this June. How will HSK, launched under such a policy background, be distributed and what utility will it have?
HashKey Group's Five Major Businesses: Venture Capital, Custody, Exchange, Node Validation, and Web3 Applications
Founded in 2018 and headquartered in Hong Kong, with operational offices in Singapore and Tokyo, HashKey is a well-known digital asset and blockchain service provider. Its goal is to develop regulated platforms and public infrastructure to promote the use of blockchain technology within existing financial infrastructures and bring Web3 into daily life.
HashKey emphasizes compliance, security, and ecosystem, providing a complete range of products and services related to digital assets, including regulated exchanges, custody, brokerage services, venture capital, asset management, node validation services, and other Web3 infrastructure. It aims to become a globally recognized and fully regulated digital asset ecosystem, with specific businesses categorized into five major areas:
- Venture Capital: Web3 venture capital firm HashKey Capital.
- Custody: Compliant custody institution HashKey Custody.
- Exchange: Licensed exchanges and brokers HashKey Pro, HashKey Xpert, HashKey Tokyo Hash.
- Node Validation: Infrastructure services and node validation services provided by HashQuark.
- Web3 Applications: Decentralized HashKey DEX, HashKey DID, HashKey NFT.
HashKey Ecological Points and Rights
The announcement is about the issuance plan of ecological points HashKey EcoPoints (HSK). HSK will support the entire HashKey ecosystem, serving as a platform loyalty reward, fairly distributed to users and contributors within the ecosystem, without private or public sales.
The total supply of HSK is 1 billion, with 65% allocated for rewards, marketing, and business development in ecosystem growth; 30% for team employee incentives; and 5% as reserves to provide additional protection for users in the ecosystem in emergencies.
HSK will have various use cases within the HashKey ecosystem, and holder rights include:
- Trading fee discounts on HashKey Pro (a digital asset exchange licensed by the Hong Kong Securities and Futures Commission, which currently does not have trading functionality), with Maker trading fees settled in HSK potentially being completely waived; exemption from withdrawal fees for specific assets; early trading of newly listed assets; access to new products and upgraded features.
- Discounts on custody fees in HashKey Custody, potentially completely waived.
- Publication of research reports by HashKey Capital.
- Increased node validation service rewards in HashQuark.
- Trading fee discounts and exclusive token private placement qualifications in HashKey DEX.
- Payment tools for service fees and limited NFTs in HashKey DID.
HSK will only be issued when HashKey's underlying business performs well, with newly added HSK injected into the circulating supply from the total reward pool. The dollar value of the total reward pool is subject to the "reward value cap" generated by profits from HashKey's related businesses, with the reward value cap set based on multiples of the net profits generated.
According to the white paper, early users who register, trade, and provide liquidity on HashKey PRO will be eligible for ecosystem rewards. Before trading goes live, HashKey will first announce the HSK reward plan and distribute free airdrops.
Destruction Mechanism
HSK will have a destruction mechanism to allow holders to avoid dilution of their rights due to the increase in circulation caused by rewarded HSK. The destruction mechanism employed is also known as the "offset issuance mechanism."
HashKey will use 20% of the net profits from specific platform businesses to repurchase and destroy HSK, with currently confirmed businesses only including the compliant exchange HashKey PRO, and potentially adding other products and business lines in the future.
Summary
HashKey Group has announced the plan to issue ecological points HSK, with 65% allocated for ecosystem growth. The trading of these points will commence after the release of the HSK reward plan and airdrops. HSK will be used within the HashKey ecosystem, including trading fee discounts, custody fee discounts, and the publication of research reports.
HSK will only be issued when HashKey's core business performs well, and 20% of the net profits from specific businesses will also be used for repurchasing and destroying HSK, with the currently confirmed business being the compliant exchange HashKey PRO.
