Tokenomics
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The Humanity Protocol (HP) economic model is meticulously designed to encourage a secure, functional, and valuable token ecosystem, underpinned by a well-structured incentive system. Central to the Humanity Protocol ecosystem is the $H token, an ERC-20 token with a fixed supply cap of 10 billion divisible to 8 decimal places. The $H token not only fuels the blockchain operations as the gas token but also facilitates a wide array of essential functions within the ecosystem:
Humanity Attestation
Identity Verification
Credential Validation
Staking Rewards
DAO Governance
Coins for Humanity Rewards
The $H utility model is dynamic, poised to evolve with the protocol’s expansion and the integration of new features, such as the DePIN network and collaborations with ecosystem projects. The core interaction with Humanity Protocol’s ledger involves identity verification, pivotal for harnessing the network's diverse utilities and thus driving demand for $H tokens.
This incentive architecture ensures all interactions within the Humanity Protocol ecosystem—be it operating nodes, utilizing identity services, or engaging in community activities—directly contribute to the protocol’s security and the $H token's intrinsic value. The strategy of rewarding participation with $H tokens, rather than relying on inflationary measures, aims to create a sustainable economic environment that values and rewards active contribution without compromising token value.
During the testnet phase and up to eight years after mainnet launch, a portion of $H is earmarked for incentivizing new users to join the network and verify their humanity. This incentivization is done through a combination of the Genesis Reward, Daily Rewards, and Referral Rewards. Unlike other projects that merely focus on supplying native tokens for UBI-like rewards, we envision $H to function as a multi-faceted ecosystem and governance token.
Humanity Protocol aims to provide $H holders with a wide array of token rewards from ecosystem projects (L3s and Dapps) as well as other blockchains and their DApps, as a result of the team’s focus on driving partners to build on top of its unique humanity verification mechanism.