🔹Utility
Governance
The foundational utility of HOG is in its governance capabilities. Token holders have a direct say in the protocol's direction, including:
Protocol Upgrades: Propose and vote on changes or improvements.
Parameter Changes: Adjust key operational parameters, such as fees or potential new derivatives, decide on their distribution and
Conflict Resolution: Arbitrate disputes or contentious issues within the community, ensuring a democratic solution.
Protocol Fees
One of the core components of Hedgehog Protocol's tokenomics is the diverse range of fees that are implemented to foster a sustainable and growth-driven ecosystem. These fees play a critical role in value capture and redistribution, ensuring that the protocol remains robust and rewarding for its stakeholders.
Redemption Fees: The protocol charges a fee whenever a user chooses to redeem Basefee for wstETH at a discount. This redemption fee is distributed between the $HOG DAO and the Stability pool. This creates a direct incentive mechanism, aligning the interests of the users and the overarching protocol governance.
Liquidation Fees: In the event of liquidations, the liquidators are compensated with a fraction of the liquidation fees. This ensures the protocol's stability, as it incentivizes active monitoring and timely interventions to keep the system's health in check.
Mint Fee: goes directly into the HOG DAO treasury. This creates a sustainable revenue stream for the DAO, enabling it to finance future developments, partnerships, and ecosystem growth.
Trading Fees: Any trades happening within AMMs accumulate trading fees. The liquidity providers earn a cut from these fees, incentivizing them to supply more liquidity to the protocol and thereby ensuring smoother trading experiences.
These fee structures serve a dual purpose: they not only sustain the operational aspects of the protocol but also play a pivotal role in enhancing the core value of the HOG token. By interlinking token utility with protocol fees, Hedgehog ensures a cyclical growth model, where increased protocol usage and adoption directly benefit its token holders.
BaseFee Token Explained
In the Hedgehog Protocol, the BaseFee token is a derivative minted using the Collateralized Debt Position (CDP) model. Its value is derived from the on-chain logarithmic moving average of gas prices, updated every 50 blocks through our trusted oracle. This design not only ensures the BaseFee's price stability but also offers protection against sudden spikes and potential external manipulation.
Once minted, holders of BaseFee can leverage it in several ways:
Speculate on gas prices
Hedge against gas during high fluctuation
It can be staked to earn as a Stability Pool depositor
HOG Supply Distribution
| Total Supply | DAO | Team | Investors | Incentives |
|---|---|---|---|---|
100,000,000 | 47,000,000 | 25,000,000 | 16,000,000 | 12,000,000 |
Approximate distribution subject to changes
Last updated
