The anti-HEX crowd is wrong. They say that HEX is a scam and a shitcoin (okay, this part is undetermined) and that the people who can free claim should not and the people sending ETH in exchange for HEX should not be doing it. One guy even said that HEX is not even a CD (Certificate of Deposit) contract.
It is a CD, some bitcoiners are arguing that HEX is not a CD because it is not USD. The idea is that a CD would have to be only for USD, or a currency that they value, like BTC, for example.
One argument is that MakerDAO’s stablecoin DAI has a functional CD system, but not HEX. Well, in reality, DAI or SAI is not USD either, DAI/SAI are merely ERC20 tokens that get minted once someone puts up another cryptoasset as collateral and the system aims to keep these tokens at the same exact valuation as USD. I love the MakerDAO project and I would agree with Austrian economics proponents that MakerDAO is superior economics from an Austrian standpoint.
However, the hatred for HEX is evidence that very few people in crypto actually understand economics, and worse, that they also don't understand Bitcoin economics. A key argument bitcoiners make against HEX is that it has no utility. That is true about Bitcoin as well, because Bitcoin is not a commodity money. People are calling it a commodity money, but it is not backed by anything other than means of exchange. Ether is a commodity money with a built in use case which is security for tokenized assets, various forms of contracts and apps. Bitcoin does not have any of those uses, it is used for nothing other than a means of exchange.
The Maker token or MKR is also a commodity money as you need it in order to close your collateralized debt position in the MakerDAO app. So, DAI/SAI is technically backed by at least two types of commodity money, MKR and ETH. This is why MakerDAO's tokenomics is so attractive and few deny that it is revolutionary.
HEX, however, is not a utility token play or even really a commodity money. It is a currency play, one very similar to Bitcoin's play. Yet, its economics/tokenomics is based off of traditional banking procedure. Richard Heart recognizes that when you put your money into the bank it does not get loaned out, instead, it gets used as the "10%" minimum retained value required to perform fractional lending activity. When you put $10 in the bank the bank gets to loan out $90 that technically never existed.
The HEX dapp agrees with this form of economic structure to a degree, and mints tokens to those behaving in the way the dapp logic deems ideal: staking for a long duration and unstaking on schedule. If you are willing to go without access to your tokens for a set amount of time and you unstake according to schedule, the system simply re-mints your tokens and mints additional tokens for good behavior.
Is this an unwholesome design? I would say that it makes perfect sense. You are creating temporary scarcity through time-locked deposits, which if scammy would suggest that every time a bitcoiner urges you to HODL they too are being scammy. After all, gold bugs and bitcoiners hope that people will hold onto their asset and require newcomers to pay more than they did to receive their asset from them. HEX is merely a decentralized, trustless way of doing the same thing.
Want to FREE Claim? Use this link:
https://hex.win/?r=0xbcd4E9E97AD3ffD9476A227562d90fFde4a1874E
Richard Heart could argue that HEX is intended to be a currency and only a currency. In fact, that is kind of what he is doing. He is not calling it a utility token, but rather saying that it can do what Bitcoin does but better. This means that he is challenging the idea that a blockchain’s native coin such as Bitcoin’s “bitcoin” and Ethereum’s “ether” being the best form of currency and he's suggesting that a token built on Ethereum can be better currency than the Bitcoin or Ethereum blockchains’ currencies.
What is the argument that it would be better? How inflation works. Proof of Work is Bitcoin’s method of securing its blockchain and its currency, while Ethereum, also a POW chain, aims to go Proof of Stake. Both blockchains must pay out all the newly minted coins to the businesses that are keeping the blockchains secure. HEX aims to mint tokens for those cooperating with an economic rule system that would be healthy for keeping a currency appreciating in value rather than depreciating.
Now, there is a caveat that must be mentioned, which is the … origin address. Duh duh duh! Yes, there is a feature in this system that is quite concerning. It seems the creators of the HEX dapp are a little on the greedy side. They created reward programs that send 50% of all bonuses/rewards back to the origin address, meaning that if those reward programs such as the built-in referral program are very popular, the origin address will own a huge percentage of the network. Is this really a problem?
Well, it seems a lot of project founders want to own a huge amount of the network, which does not make them a scam necessarily. The Kik company intended to own 30% of the network supply and I’m sure all of the token sale value went to them in exchange for the other circulating tokens. That doesn’t make their asset or ecosystem a scam. Zcash’s developers also created an address that would act as a treasury for their team, and of course, many other projects did the very same.
So, it is fair to say that HEX and ETH going to the origin account in the percentages that they are likely to go will be all that much of a problem in the long term, especially since all the bonus reward features only last for one year. Still, is there a way for the community to optimize the amount of HEX given out to the wider community and shrink the amount sent to the HEX project team?
Yes, there is a way! The HEX dapp was designed with a set amount of HEX that will be distributed among three parties, 1. free claimers (BTC holders), 2. ETH depositors (using the "Transform" feature), 3. the origin account. Technically, there is a pool of HEX that is divided between parties 1 and 2 and if party 1 free claims then party 2 ends up with a smaller pool to obtain for their ETH, while party 3 receives HEX when party 1 claims their tokens and recieves ETH when party 2 transforms their ETH into HEX.
If very few people free claim the origin account will not receive a lot of HEX, and if very little ETH is "transformed" into HEX, then the same amount of HEX will go to those that gave up the ETH, but the origin account will not receive a lot of ETH, simply because everyone sent only small amounts of ETH. This is a solution to the uneven rewards program and could help the HEX dapp become a balanced and solid currency for use in the future.
https://hex.win/?r=0xbcd4E9E97AD3ffD9476A227562d90fFde4a1874E
