H1 Tokenomics
Overview of Tokenomics
The Haven1 economy has been carefully designed to establish a sustainable economic model that supports network participants and long-term ecosystem growth.
This paper provides an overview of the key components of Haven1’s token utility and network structure. For a comprehensive understanding of Haven1’s technical design, we encourage you to refer to the Haven1 documentation.
Key Participants of Haven1
👑 Community Members
Individuals and businesses submit transactions on the Haven1 platform for a variety of actions, including managing digital assets, interacting with smart contracts, and utilizing advanced applications.
Haven1 provides zero gas fees, a critical advantage for maintaining sustainable Web3 ecosystems while mitigating the volatility of transaction costs. Notably, Haven1 introduces an application-specific fee model, ensuring users only pay for the smart contracts they interact with.
💎🤲 $H1 Holders
Haven1’s native asset, $H1, has a limited supply. $H1 holders participate in governance, allowing them to engage in Haven1’s decision-making processes. These governance decisions cover important network aspects, including contract deployments, builder grants, protocol upgrades, and fee adjustments—giving $H1 holders a voice in shaping Haven1’s future.
🛡️ Validators
Validators are essential to Haven1, responsible for processing transactions and maintaining network security and efficiency. They earn a share of network-based compensation for securing transactions and maintaining network performance.
Unlike many other blockchain implementations, Haven1’s $H1 token is non-inflationary, meaning validators do not arbitrarily mint new tokens. This design ensures incentives remain aligned with the long-term stability of the network.
Validators play a key role in supporting the network’s expansion and security, making Haven1 a trusted, high-performance blockchain ecosystem.
How the $H1 Token Powers Haven1
$H1 is Haven1’s native utility token. It is a finite asset with a fixed supply of two billion $H1 tokens, designed to support Haven1's network operations. The $H1 token has four core components:
⛽️ Application Fees
Haven1 is pioneering a zero gas fees ecosystem to ensure a fair, flexible, and sustainable environment that shields users from gas fee volatility.
However, to support the network’s growth and utility, Haven1 introduces a unique dollarized application-specific fee model, paid in $H1 tokens.
This application fee model addresses key challenges facing networks, builders, and users alike, offering a flexible solution for sustainable ecosystem growth.
👷 Developer & Builder Benefits
Haven1’s application fee model provides a more predictable and flexible approach compared to traditional gas-based models, which can lead to inefficiencies and reliance on volatile market conditions.
With the application fee model, developers can decouple from the volatility of the $H1 token price and adopt more sustainable business models that are adaptable to market conditions and their audience’s needs, enabling a more reliable and stable source of income from day 1.
👑💎🤲 Community & Holder Benefits
Participants of the Haven1 ecosystem benefit from the ability to move assets within the network at no cost, while only paying for smart contract interactions that provide tangible utility and impact to them. This eliminates traditional gas fees, providing a more predictable and efficient transaction experience.
$H1 stakers play a key role in supporting Haven1’s growth and development, aligning the interests of developers and $H1 holders.
🏛️ Governance
$H1 token holders participate in governance, helping shape the direction of core hApps (protocols) through voting on:
Protocol updates for core hApps (hSwap, hLend, hPerps, hNFTS, hDomains)
New core protocols to be added
Distribution of community-driven rewards through the Governance Fund and fee channels
This decentralized governance model ensures the representation of $H1 token holders' participation in decision-making. Governance rights extend to key aspects of core hApps, including decisions around network parameters for AMM, credit/debt markets, derivatives, NFT marketplace, and Account Name Service.
🏦 Incentive Mechanisms
The Haven1 blockchain will select an independent incentives manager to oversee a fair and transparent on-chain $H1 rewards program that promotes positive and responsible conduct among its operators, including builders, community members, and validators.
⚖️ Token Utility & Economic Flywheel for Sustainable Value Recapture
The building block protocols (Core hApps) of Web3 Automated Market Maker, Lending Market, and Derivatives Platform are native to the network and governed by $H1 token holders through network participation and staking.
These essential pillars establish a foundation of network functionality and ecosystem sustainability, enabling the expansion of other features like the NFT Marketplace and Account Name Service.
💡Economic Impact of Community-Owned Core hApps
Concentrated Liquidity = Better Pricing: Web3 often faces duplication of dApps without adding value to consumers. By concentrating liquidity in core protocols managed by the community, Haven1 ensures resources, mindshare and incentives are concentrated, leading to improved, fairer pricing for the community.
Boosted $H1 Utility: Without needing to share with third-party builders, the $H1 token will benefit from the demand generated by network usage, contributing to the creation of ecosystem-wide incentives based on network activity and throughput.
🥧 $H1 Token Distribution
The total supply of $H1 tokens is capped at 2,000,000,000 (two billion) and will reach full circulation in 72 months.
The $H1 token distribution fosters a sustainable and thriving ecosystem by supporting network growth, encouraging active participation, and upholding decentralized governance principles.
45% (Community & Partners) + 3% (Initial User Airdrop) of $H1 tokens are allocated to initiatives aimed at network growth and sustainability, initially overseen by the Haven1 Association in alignment with decentralized governance principles.
These tokens will be allocated to various network participants, including builders, researchers, and validators, through programs designed to support network participation and ecosystem development.
Notable initiatives include the Developer Grant Program, which supports early projects contributing to Haven1’s growth, and the $H1 Incentive Program, designed to reward on-chain protocols for their contributions.
The remaining $H1 tokens will be distributed to early contributors, backers, market makers, exchange partners, and liquidity partners to help support the initial growth and liquidity of the ecosystem.
Testnet Airdrop
2.5% (+0.5%) from Community Incentives
Community & Partner Incentives
45%
Proactive programs, grants, and incentives designed to stimulate community participation and ecosystem development. Distributed to developers, partners and individuals who actively contribute to Haven1’s growth.
Early Backers
10%
Early backers who supported the Haven1 vision and provided the necessary funding to build and grow the ecosystem.
Public Round
12.5%
Community backers who support the Haven1 vision and want to provide the necessary funding to bring Haven1 to market.
Core Contributors
15%
51 month distribution to people who play a crucial role in transforming the Haven1 concept into a reality, and will serve to fund the ongoing development of the protocol.
Haven1 Association
10%
Tokens allocated to kickstart and boost the core infrastructure initiatives through building, maintaining, liquidity provisioning, marketing and demand-based incentives.
Floating Liquidity
5%
Tokens allocated to providing initial and ongoing liquidity into the market.
🚰 $H1 Emissions Schedule
Closing Remarks
The Haven1 economy and tokenomics have been carefully designed to create a long-term, sustainable flywheel that drives the continued growth of Haven1 and encourages active participation in the ecosystem.
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