Heiko ($HKO) Token
Last updated
Last updated
Overview
Heiko ($HKO) is the native platform token for Parallel Heiko. It is required to execute the functionalities and security of our protocol. Note that these tokens are not currently in circulation, but there will be upcoming plans that our team will share - stay tuned! 🚀
The total supply for HKO token is 1 billion. We made the decision to incentivize parachain-level activity and usage. Parallel-Heiko will likely be able to provide the most generous liquidity mining incentive of any project on the Polkadot ecosystem, both for developers building on Parallel-Heiko, and for users providing liquidity. Moreover, we reserve an allocation to the insurance pool to minimize drastic changes in market prices and liquidation risks in the DeFi markets. With an insurance pool, our protocol will be able to cover users’ loss, and give new users confidence to stake in our decentralized, non-custodial staking pools.
This is how we allocated Heiko ($HKO) accordingly:
35% Liquidity Mining Rewards
20% Team & Advisors
15% Private Investors
15% Ecosystem
5% Insurance Pool
5% Crowdloans
5% Seed Investors
*Note that the numbers here may be subject to change.
Users who want to play a part in Parallel’s future are encouraged to participate in Heiko’s crowdloan. Up to 5% will be split among all of the contributors in the parachain auction, and released according to a linear vesting schedule if/when Heiko wins a parachain auction. The crowd loan contribution is soft capped at 150k KSM (with a hard cap at 200.1k KSM) and will allocate 5% of the total supply (50M HKO tokens) as rewards and bonuses. The minimum guarantee is 200 HEIKO tokens per KSM contributed.
The tokens rewarded will be vested linearly across a one year time frame. This means that every block, a proportion of HKO rewards will be unlocked, and the user can claim them at any time. There is no cliff in the crowdloan vesting, so the distribution will occur evenly, every day and month.
HKO token holders are delegated with voting rights and the ability to propose governance action, referenda, network upgrades, council elections, and other parameter adjustments.
HKO is a native fee token that is required to execute the functionalities and security of the protocol.
The native token is utilized to incentivize collators and validators, which is the mechanism that powers the decentralized node infrastructure of the network.
HKO token is utilized to hedge risks, incentivize rewards, and share profits. The insurance parameters are determined by HKO token governance in the event of a slash.
HKO will be burned when a fee is paid on our platform. These fees include money market fees, staking/ unstaking fees, transaction fees, and any fees in our future fixed-rate products as well.
HKO will be added as an incentive for users to stake, lend, and borrow on Heiko.
Validators will have incentives to hold HKO in order to be whitelisted in our node evaluation schema/algorithm. The more HKO they hold, the better their chances will be of being nominated by our stakers.
