# What is esH1?

Direct Token link from Explorer: <https://explorer.haven1.org/address/0xC6414DC21b94f88e7aD43b92d98E27EcA6e97cbE>

esH1, or Escrowed H1, is a HRC20 token within the Haven1 ecosystem designed to encourage long-term holding and participation.&#x20;

esH1 does not increase H1 token supply. Every unit of esH1 in circulation comes at an expense of 1 unit of H1.&#x20;

**1 esH1 is always equal to 1 H1**, meaning it holds the same intrinsic value. However, this token is non-transferable, so it cannot be traded or transferred. **1**

### Key Advantages of esH1

1. Enhanced Staking Rewards: esH1 is the only way to engage in locked staking on Haven1, offering higher rewards than flexible staking methods. This incentivizes users to stay committed to the platform, helping strengthen its long-term stability.
2. Supporting Token Stability: By converting H1 into esH1 and locking it, the circulating supply of H1 is reduced. This helps manage price volatility and ensures the token's economic stability.

### Uses of esH1

* Staking: esH1 can be staked either flexibly or by locking. Locked staking involves committing your esH1 for a fixed duration, earning you higher returns in exchange for your long-term commitment. This commitment is rewarded with significantly higher staking returns.
* Vesting: You can choose to vest your esH1, which means the tokens are gradually released over a set period, typically 365 days. This vesting process is linear by design, aligning your commitment with gradual reward distribution.

### Summary

esH1 serves as a powerful tool for you if you are committed to the long-term health of Haven1. It allows you to maximize your returns through locked staking, participate in governance, and contribute to the stability and security of the platform.&#x20;

By choosing to convert you H1 tokens to esH1 and by locking those esH1 tokens, you demonstrate a vested interest in the future of Haven1, earning greater rewards and playing a pivotal role in its governance.


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