Hex is a cryptocurrency that runs on the ethereum blockchain. It is designed as a store value and aims to be better store of value than bitcoin. HEX has an inflation rate of 3.96% per year. This inflation is only paid out to people who stake their HEX for a set period of time. The HEX smart contract has 2 security audits and 1 economic audit.
What is staking?
Staking means that you lock up your hex into a smart contract for a set period period of time. In return for staking your HEX in the smart contract you get paid out a percentage of your staked amount.
Staking in HEX is similar to putting your money in a term deposit for a certain period of time at a bank. You can think of HEX like the equivalent of a term deposit in the finance and banking world.
How does staking work?
In HEX, the longer amount of time you stake and the more amount of HEX that you stake, the more interest you will earn. This interest is paid out in HEX at the end of the lockup period. Since only about 10% of addresses are staking HEX, the interest being paid out from the inflation averages about 39.6% per annum. As more people stake, the less interest you’ll earn as the 3.68% inflation has to be spread out amount mores people who are staking.