Hegic (HEGIC)

Data Delay

Tokenomics & Utility

Supply and distribution

HEGIC began as an ERC-20 token on Ethereum. Its 2020 launch plan set an initial supply of 3,012,009,888 tokens. The planned allocations were 40% for rewards to pool participants and option users, 25% for a bonding-curve distribution, 20% for early contributors, 10% for the development fund, and 5% for an exchange pool. A bonding curve is a contract that changes its quoted exchange rate according to its programmed rules. These allocations describe the original design, rather than a continuing schedule of rewards. (medium.com)

Hegic later removed a large part of that initial supply. In its February 2022 HardCore announcement, the project reported burning roughly two-thirds of the originally created tokens. A burn sends tokens to an address from which they cannot normally be recovered. This is an important part of HEGIC’s history: the launch allocation alone does not describe the token’s later supply. (medium.com)

Staking and the Stake & Cover model

The token’s central practical use is participation in Stake & Cover. Under the model Hegic described for its Arbitrum-era protocol, participants stake HEGIC and share the net results of options activity. Net results mean premiums received minus payouts to option buyers, calculated under the pool’s rules. Positive results can be distributed in a stablecoin; negative results can be covered by selling a portion of staked HEGIC. Staking therefore links token holders to the performance of the options pool. (medium.com)

Earlier Hegic versions used staking lots of 888,000 HEGIC to distribute settlement fees. The project’s later Stake & Cover design changed that relationship between staking and options outcomes. Hegic’s original token materials also listed governance as an intended use, while the clearly documented role in the later pool model is staking and coverage. (medium.com)