Protocol Earnings

The protocol transaction fees will be distributed as follows:

• 55% for Liquidity Providers in LP tokens

• 30% in dividends redistributed to xHIVE holders

• 15% to the Core Contributors funds

Deflationary Mechanisms:

In addition to the hardcap set on HIVE, we also implemented some deflationary mechanisms in order to reduce the total supply.

xHIVE redeems:

When converting xHIVE to HIVE, if the vesting duration isn't the maximum, the xHIVE : HIVE ratio will be lower than 1:1, down to a minimum of 1:0.5. All of the HIVE excess will automatically be burned.

Example: If a user redeems 1000 xHIVE with the minimal 15 days vesting duration, he will obtain a 1:0.5 ratio, and receive 500 HIVE in the end

That means a total of 1000 - 500 = 500 HIVE will be burned during the process.

xHIVE deallocations:

When deallocating xHIVE Plugin, a deallocation tax is applied. It can vary between contracts, but will usually be 0.5%.

The corresponding HIVE amount will automatically be burned.