HEX MINING REWARDS

Inflation can mean a variety of things. For economies, inflation means that the price of goods and services are increasing. But for a currency, inflation means that the money supply is increasing. Increasing the money supply is correlated with the increase in the prices of goods and services because increasing the money supply debases the currency, which is reflected in the cost of goods and services. But for our purposes here, we just want to highlight the RATE of currency inflation. The rate depends on how much currency is actually being added over a period of time.

Bitcoin, for example, is adding new Bitcoin into the circulating supply continuously via the mining rewards. Miners are rewarded in Bitcoin, and the mining rewards are cut in half every four years. This means the rate of inflation is decreasing. Although its inflation rate is decreasing, Bitcoin remains an inflationary currency. The inflation is slowing down, or decreasing. 

Who gets the inflation? This is the most important question for every form of currency. That’s because whoever gets the inflation benefits tremendously. If you are the one receiving the inflation, then the more inflation there is, the wealthier you become (assuming the currency has value.) 

This is why corruption exists in societies during times when inflation goes out of control. Inflation enriches the few who get the inflation. It’s the dirty little secret of most economic systems. For example, remember when Covid shut down the world, and the United States inflated their currency by 10 trillion dollars? Who benefited? Well, everyone who owned assets benefited because the cost of goods and services increased. More specifically, the cost of ASSETS increased (homes, cars, luxury goods, stocks, crypto, etc.).

So basically, the rich got richer and poor got poorer. Inflation was out of control, and all those extra dollars went directly into the hands of the rich. That’s the dirty little secret behind the U.S. dollar. Every time they print money, the rich grow wealthier while simultaneously pricing out the poor. Rich get richer, and the poor get poorer. This cycle isn’t changing anytime soon, and it’s actually getting worse at a faster rate. But let’s get back to cryptocurrency.

Bitcoin is inflationary. The increasing supply of Bitcoin is added via the miners. One might think that being a Bitcoin miner is a profitable endeavor, right? It used to be, when the inflation rate was high and the costs of being a miner were low. But that was also long before Bitcoin had any value in USD. So is it profitable now that Bitcoin is $100k per coin? It ought to be extremely profitable. But it’s dangerously unprofitable. Why? Because the costs involved in being a miner are far too high. Being a Bitcoin miner today is like being a landlord where the renters continuously destroy the roof, and you’re constantly having to pay for brand new roofs and repair interior water damage.

As it turns out, mining Bitcoin requires three enormous expenses: (1) The computer hardware required is enough to fill up entire warehouses (2) The land required for these warehouses must be suitable for extremely large quantities of computer hardware running 24/7 (3) The energy costs involved in such an endeavor are astronomical. As it turns out, the costs of running a Bitcoin mining farm are so great that the majority of the BTC rewards (inflation) must be sold on the market just to cover these costs.

This has the following effects: (1) Hardware companies are enriched (mostly manufactured in China) (2) Energy companies are enriched (not exactly what Satoshi had in mind) (3) Price suppression, as Bitcoin is continuously sold on the market by the very entities (miners) who just received it. Not good. And … what happens when the price of Bitcoin falls below the profitability threshold? Well, it doesn’t take a rocket scientist to figure out that miners will close up shop. Say goodbye to Bitcoin. 

In HEX, by contrast, every holder can become a Miner at zero cost. There is no additional hardware required, no energy consumption, and no need to sell the HEX rewards (inflation). HEX Mining gets rid of EVERY negative externality attached to Bitcoin.

Formerly called staking, the HEX user interacts with the HEX smart contract and determines how much HEX and for how long they wish to Mine their HEX. After the user interacts with the contract and determines how much and for how long he or she wants to Mine (stake), the user receives what are called “T-Shares.” These SHARES represent their portion of the HEX inflation.

The HEX Miners receive the inflation in exchange for their commitment to lock a certain amount of HEX for a specific period of time. After the time period ends, the user interacts with the HEX smart contract once again, and MINTS all of their rewards. The principle and the rewards (yield) become “liquid” once again and the user can either hold, sell, swap, or become a Miner once again.

All of this is accomplished without the use of any 3rd party, or middleman. Welcome to the future of finance! Welcome to the better Bitcoin!