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What is HEX Coin?
Hex is a new crypto coin that has certificates of deposit built at the protocol layer. Many crypto holders believe that if they hold long enough they will have a big payday at some point. The problem with this strategy is that it is difficult to increase holdings unless you earn interest. You can earn interest in Bitcoin with companies like BlockFI but you are then exposed to counterparty risk.
How does Hex Coin work?
- Step 1: Prepare for the Hex Coin Snapshot
- Step 2: Claim your Hex Coin
- Step 3: Consider building up your Hex Coin stack
- Step 4: Decide what to do with your Hex Coin
- Step 5: Stake your Hex Coin
- Step 6: Set a reminder to claim your Hex stake once the staking time is over
Step 1: Prepare for the Hex Coin Snapshot
Hex will be given to most Bitcoin Holders. If you hold Bitcoin directly and are not in the blacklist you are eligible for Hex. Each BTC will entitle you to 10,000 Hex coins. It seems that at some point in November 2019, a snapshot will be taken of the BTC blockchain. In practice, this means that a record of all BTC account holders will be taken at a specific point in time. Importantly, you need to hold Bitcoin in your own account and not on an exchange. Then all those who own Bitcoin will be able to claim Hex but only in the first 50 weeks after launch. When you claim Hex your Bitcoin will remain yours, you do not need to send it anywhere. Only those who are in the snapshot will be part of the Hex Airdrop of the Hex free distribution.
Have BTC ready in your own wallet, which can sign a message proving you are the owner of the account.
Step 2: Claim your Hex Coin
The claim is simply done by proving ownership of a Bitcoin address, which you can do this by signing a message. In this procedure, you will receive a string and then sign it (transform it) using functionality in your bitcoin wallet.
The earlier you claim the better, early birds have a 20% speed bonus, this decreases over the time of the claim period (50 weeks). When you claim through this link you make an additional 10% on your claim! We suggest you bookmark that link and register in our mailing list to stay updated on the latest from Hex.
90% of your claimed Hex is automatically staked for at least 50 weeks. You can change the time period for more than 50 weeks if you like. Only 10% will be available to you to sell.
See our full detailed tutorial on How to claim Hex.
When you claim your Hex you can get a bonus or a penalty.
- GoxMeNot: Some addresses will be banned from participating in the Hex claim. For Example (e.g. Mt. Gox). This is an arbitrary decision by Richard Heart.
- SillyWhalePenalty: Addresses with 1000 BTC or more will have a penalty, which is based on a sliding scale, the more you have the higher the penalty.
- LatePenalty: Everyday that passes by from launch date and you do not claim, you lose 0.286% of your claim. On day 351 your claim will amount to zero.
- Speed: On the first day you claim you get a 20% bonus, this bonus is reduced every day by 0.057%.
- Referrals: Anyone using this link gets a 10% bonus, the referrer gets a commission but this has no impact on the claim amounts.
Step 3: Build your Hex Coin stack
Obtaining additional HEX can be done in 2 ways, the first is to buy it from an exchange, at this time it is not known which exchanges will carry the HEX. the second is to use the transform option.
The early bird bonus called (WeAreAllSataoshi) is lost to those who claim late and it goes to a pool of funds called the “Adoption Amplifier” and then doubled. Anyone can bid to buy these funds with Ethereum using the transformed contract.
The auction will take place daily and it will be pro-rata. Previously these bonuses were going directly to the stakers! In addition, if you use this link, you will get a 10% bonus when you participate in this auction. Richard’s heart has claimed that the Etherum funds sent to this contract will not provide any benefit to those who buy hex.
Step 4: Decide what to do with your Hex Coin
- You can do nothing.
- You may be able to sell it.
- You can Stake it (create a deposit)
Step 5: Stake your Hex Coin.
Hex has a constate rate of inflation of 3.69% which is distributed to the depositors of Hex. Depositing Hex is done with a smart contract and this is called a stake rather than a certificate of deposit. When you create a Hex stake, you do not need to give your coins to any third party. You have a trusted relationship with an immutable smart contract. No one has control over this smart contract once it is deployed.
To create a certificate of deposit in you need to put in the number of Hex coins you would like to stake (deposit) and the length of the deposit. When you staking periods ends, you need to perform a specific transaction to release the deposit and get the interest.
There are penalties if you decide to end your stake early or if you claim your stake late. This Emergency Unstake penalty is then awarded to all people who have staked their Hex. The penalty is only 1% a week, but it can add up if your original stake was for 50 weeks. Once staked Hex is locked it cannot be sold or moved, this works like any certificate of deposit account.
Hex Coin Stake Related Bonuses
We Are All Satoshi
All lost claims are added to the “WeAreAllStaoshi” bonus. The lost claims are the decrease in the claim that occurs each day the claimers are late to claim. On the 352nd day, the “WeAreAllStaoshi” pool will be distributed to the stakers.
Critical Mass Bonus
This works similar to the above bonus, but works on the Bitcoin side. Any BTC addresses that do not participate in the claim a bonus is generated to the stakers on the 352nd day. The above bonus and this one are calculated as (payout * (1 + coins claimed/total coins + addresses claimed/total addresses)).
Early and Late Unstake
50% of the penalty goes to the origination address and another 50% goes to the payout pool which is paid out to all stakers.
The longer you stake for the higher the ratio by which your HEX is turned into shares eligible for reward pool. When you stake for ten years, you have around triple the share power to when you stake for one year.
Each additional year you stake you have an additional 20% return.
The bigger your stake the more you make. Not exactly whale proof as repeatedly promised but here it is. This bonus is capped for accounts going over 150,000,000 HEX
We will send a launch reminder, so subscribe to our mailing list.
The Origin Address
The origination address will get
- the same bonuses of all launch bonuses
- All ETH that is sent to the Adoption amplifier
There is a guarantee that these funds will not be used for the benefit of the Hex token holders or the Hex ecosystem. Those that assume the inverse do so at their own risk.
What could happen with the funds in the origination address
- Nothing: The market keeps asking what will happen next
- The originator address decides to stake the HEX collected. : This will result in much lower rewards to all the Hex stakers.
- Account Hex is sold and used to promote HEX: Supply goes up and then the demand goes higher than the increase in supply.
- Account Hex is sold not to promote Hex: Supply goes up no impact on demand.
Hex Coin Conclusion
Hex is an extremely speculative play, not only because the system is untested but because there are a host of other coins such as the deflationary coins playing on similar models. Have a think about Hex consider the pros and cons of Bitcoin vs Hex and consider if Hex a Scam?
In order to be prepared for D-Day make sure your BTC is in a wallet that can sign a message on the day of the snapshot. Then Claim as early as you can, this is a no brainer. Decide what percentage of your stake you want to sell and what percentage you want to stake. If you decided to stake, remember the longer you stake and the larger your stake the more HEX coins you will make. Set reminder for when your stake ends, as the later you are in claiming the more you will lose.