HUB, token of the Minter Hub blockchain

HUB Token

HUB is the Minter Hub network’s native token, whose supply is 1,000,000 units. At the time of writing, HUB represents an ERC-20 token on the Ethereum network with no lock-up periods or any other limitations, meaning the token is completely free to circulate.

  • Fund: 950,000 tokens
  • Minter community: 50,000 tokens
  • Team
  • Investors (with smart contract-based vesting of 3–5 years)
  • Oracles
  • Members of the community
  • Partners (marketing, legal, exchange)
  • Market makers

Role of Community

Since the very beginning, we’ve aimed to design the most balanced token distribution scheme for the members of our community. That’s why the first 50,000 HUBs have been accrued to the addresses of 2,000 most active Minter participants. Those who have been helping the project in one way or another since 2017, when we were just starting.

  1. Minter network validators
  2. Major Minter network delegators: 1,000 participants
  3. Minor Minter network delegators: 1,000 participants picked randomly
  4. All-time contributors
  5. Q3 2020 contributors

Governance

As it’s been mentioned above, 1 million HUBs will be issued in total, of which 50,000 have been already distributed among the community members and 50,000 may enter into circulation during 2021.

Tokenomics

In 2021, we see three main use cases for HUB tokens to create a growing blockchain economy and long-term balance of power:

  1. Staking
  2. Fee discounts
  3. Tips

Staking

Minter Hub oracles need to stake HUBs for transactions to be processed fairly and blocks to be formed. For that, they receive up to 1% of the fees charged for all transfers between the Minter, Ethereum, and Binance Smart Chain networks. The fee is collected for depositing the money. For example, when someone transfers 100 USDT from Minter network to Ethereum, 1 USDT is paid out to oracles proportionally to their stake in Minter Hub.

  • Price for 1 HUB: $100
  • No. of staking HUBs: 20,000 tokens
  • Daily transfer volume: $1M
  • Transfer fee: 1%
  • No. of oracles: 16
  • Pessimistic: if the volume of transfers between the networks is $100,000 and the price of HUB token is $100, the profitability of oracles will be 15–40%, depending on the number of staked tokens
  • Optimistic: an increase in the volume of transfers to $10 million per day would give oracles an income of $36.5 million per year, for which participants will be ready to provide a collateral of $200–500 million in stake, which, given the limited supply of HUB tokens on the market, might translate into a price of $500–5,000 apiece
  • Transfer of tokens with swapping. For example, a user needs to transfer USDT from Binance Smart Chain to Ethereum with conversion into USDC. The route will look like this: USDT is sent to Minter, where it is exchanged for USDC through liquidity pools and then withdrawn to the Ethereum network. This is the simplest, fastest, and completely decentralized option, which guarantees that transaction of any volume will be executed. The fee for all transactions will be 1% for deposit into Minter, 0.2% for swap, and 1% for withdrawal into Ethereum, plus gas costs. Today, this solution is incomparable in terms of seamless execution, providing the user with complete safety and control over their funds at each of the steps.
  • Sending almost any cryptocurrency to any user of the three blockchains. This is noteworthy because if you have a given token on the Minter address and native ETH and BNB on Ethereum and Binance Smart Chain, respectively, you can easily make a transaction to another network. For example, if the transfer comes from Minter, then tokens are swapped for the ones that the recipient needs instantly before withdrawal and then credited to the specified address through Minter Hub. At the same time, in Minter, this is done by simply entering the recipient’s address, ticker of the token, and amount to be credited, after which all conversions and crediting itself take place. Transaction costs will be 0.2% for conversion and 1% for transfer to another network.
  • On-demand liquidity. This is perhaps the coolest feature possible: active blockchain users often need to get some volume of tokens fast and at a specific price. With Minter, it’s implemented like this: the exchange costs are compared across three networks at once (Minter, Ethereum, Binance Smart Chain) and all liquidity pools. The most cost-efficient one is determined, including the costs of transfers and gas, and the process starts. For example, it turns out that the most optimal way to buy BNB for USDC is through ​​PancakeSwap on the Binance Smart Chain: USDC is withdrawn to the Binance network for 1%, the swap is made in the pool, and BNB is returned back to Minter. At the same time, the Binance network fees can be paid directly from Minter.

Discounts

Bearing in mind that the 1-percent cross-chain transfer fee could be high for professional players who trade in big volumes, while realizing that oracles need to be interested in maintaining the Minter Hub network in the long run, we are going to introduce the following discount system for HUB holders.

Tips

The most important element of tokenomics will be tips about trades and profitable operations carried out using Minter Hub. Any community member will receive tips if they have at least 1 HUB on their address on any of the networks. That way, we’ll help answer the main question of the DeFi market: “How to make money?”

Pricing

At this point, the team does not have a goal to participate in the formation of the HUB token pricing in any way. The team will not be engaged in listing the HUB token or acting as a market maker or hiring one. We believe that should be up to the free market and we should only step in to set the right economic conditions for all Minter Hub participants and token holders.

Investors

Since the first announcements of Minter Hub, the fund (token holder) has been receiving offers from investors interested in long-term participation in the protocol. We are talking about both venture funds and those focused exclusively on blockchain projects.

Technologies

Minter Hub is based on Cosmos SDK and a modified Peggy solution that’s developed by the Cosmos team.

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