🏰H1 Tokenomics
Overview of Tokenomics
The Haven1 economy has been meticulously designed with a clear and overarching goal: to implement an economic system that aligns incentives across all entities participating in the Haven1 ecosystem. This tokenomics paper outlines the fundamental elements of the Haven1 economy. For a comprehensive understanding of Haven1’s technical design, we encourage you to refer to the Haven1 documentation.
Key Participants of Haven1
👑 Users
Individuals submit transactions to the Haven1 platform for diverse actions, such as managing digital assets, interacting with smart contracts, and utilizing sophisticated applications. Haven1 provides users with zero gas fees, a crucial advantage to maintain sustainability Web3 ecosystems, avoiding the impact of gas fee volatility. Notably, Haven1 introduces an innovative application-specific fee, allowing users to only pay for smart contracts they choose to interact with.
💎🤲 $H1 Holders
There is a limited supply of Haven1’s native asset, $H1. $H1 holders can participate in the network’s revenue-sharing program, which provides them with unique economic benefits. Moreover, H1 holders are vested with governance rights, enabling them to actively engage in Haven1’s decision-making processes. These influential decisions encompass vital matters like approving contract deployment, builder grants, protocol upgrades, and fee adjustments, granting $H1 holders a direct role in shaping Haven1’s future.
🛡️ Validators
Essential to the Haven1 platform, validators play a crucial role in transaction processing and execution, ensuring the platform’s integrity and efficiency. Their efforts are rewarded through a percentage of network fees, incentivizing them to drive user adoption and transaction volume. Unlike many other blockchain implementations, Haven1’s $H1 token is non-inflationary, meaning validators do not mint tokens arbitrarily. This significant distinction in mechanics reinforces their motivation to actively attract users to the network, as increased transaction volume directly benefits them. By aligning incentives with network growth, validators become powerful drivers of Haven1’s success.
How the $H1 Token Powers Haven1
$H1 is Haven1’s native utility token. It is a scarce asset with a fixed supply of two-billion $H1 tokens that has four core components:
⛽️ Application Fees
Haven1 is pioneering a zero gas fees ecosystem to ensure a fair, flexible and sustainable ecosystem that shields against gas fee volatility.
However, to drive value to the network and $H1 holders, Haven1 is pioneering a unique dollarized application-specific fee model, paid in $H1 tokens.
This unique application fee is superior in nearly every way, and solves many of the core challenges facing networks, builders and users alike.
👷 Developer & Builder Benefits
Haven1’s application fee model is superior to the more common gas monetization schemes, which incentivize developers to create gas-inefficient contracts, tie their business model to the price of the underlying asset, and limit the fee structures to models that are only profitable in peak market conditions.
With the application fee model, developers can decouple from the volatility of the $H1 token price, bridge more sustainable business models that are less tied to market conditions and flexible to their audience’s needs, and most importantly, generate real, predictable revenue from day 1.
👑💎🤲 User & 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 drive real economic value and impact to them. This eliminates gas fees typically associated with transactions, ensuring a more predictable and cost-effective experience.
$H1 stakers contribute significantly to Haven1’s economic prosperity and also share in the application fee revenue, aligning the interests of developers and $H1 holders.
🏛️ Governance
$H1 token holders actively shape the core hApps (protocols) through governance mechanisms, such as:
Voting for core hApp (hSwap, hLend, hPerps, hNFTS, hDomains) updates
Distribution incentives through the Governance Fund
Grants provided to Builders of 3rd-party hApps on Haven1
This transparent and fair decentralized governance model ensures the representation of $H1 token holders’ interests. Governance rights extend to core hApps such as: Automated Market Maker (AMM), credit and debt market (borrowing and lending), derivatives platform, NFT marketplace and Account Name Service.
🏦 Incentive Mechanisms
The Haven1 blockchain will implement $H1 incentive programs to select, incentivize, and reward honest and positive conduct among its operators, including builders, community members, and validators.
⚖️ Network Revenue Share
$H1 token holders have the opportunity to participate in the network’s revenue-sharing program.
The H1 token holders will control several native core onchain hApps, such as the Automated Market Maker, Lending Market, and Derivatives Platform.
These essential pillars establish a foundation of real yield, enabling the expansion of other functionalities like the NFT Marketplace and Account Name Service.
💡Economic Impact of Community-Owned Core hApps
Concentrated Liquidity = Better Prices: Web3 faces a problem where most value is driven through the core financial (i.e., DeFi) infrastructure, which makes it a common-ground for duplication of dApps without any real added consumer value. With the core infrastructure managed by the community and not duplicated by 3rd party Builders, Haven1 ensures liquidity and incentives are concentrated to protocols, resulting in better, fairer prices for the community.
Boosted $H1 Utility: Without needing to split revenue with 3rd party builders, $H1 token holders will benefit from all the traffic flowing through these hApps and the fees, revenue, and governance rights that follow.
🥧 $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 robust, sustainable and thriving ecosystem by striking a balance between promoting network growth, encouraging active participation, and upholding governance decentralization principles.
45% (Community & Partners) + 2.5% (User Airdrops) of H1 tokens are allocated to the Community & Partner related growth and sustainability initiatives, initially managed by the Haven1 Association. These tokens will be strategically distributed to various network participants, including builders, researchers, validators, and others, through carefully designed programs. Notable among these initiatives are the Developer Grant Program, which rewards early projects contributing to Haven1’s growth, and the $H1 Incentive Program, designed to provide onchain protocols with deserved incentives.
The remaining $H1 tokens will be distributed to early contributors, backers, market makers, exchange partners and liquidity partners who will help kickstart the $H1 economic flywheel.
| Category | Percentage | Description |
|---|---|---|
Testnet Airdrop | 2.5% | A series of airdrops to reward members and participants of the Haven1 community for specific helpful behaviors as outlined in the Rewards Hub. |
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 meticulously designed to create a long term, sustainable flywheel that drives the continued growth of Haven1 and incentivizes the right behaviors.
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