Hex Token is it a scam or not ?

What is HEX Token?

Currently if you want to invest a cryptocurrency like Bitcoin in order to grow your holding over time, you need to pass your Bitcoin to a third party, trust that they trade it well, trust that they will not run away with your coins, and trust that they will send back your principal and earnings after the investment period. This goes against the crypto mantra “not your keys, not your coins”. If you have to trust someone else with your keys or your tokens, then you don’t actually have sovereignty over your holdings. One need not look far to see and hear all the horror stories of people scammed by cryptocurrency “investment” opportunities.

The Solution: HEX
HEX Logo
There is room in the market for a token that better solves the want for investment growth that follows the secure and trustless pattern of proper cryptocurrencies. That is where HEX comes in. HEX (formerly called “Bitcoin Hex”) is a new cryptocurrency designed at the contract level as an investment instrument that functions similarly to a Certificate of Deposit (CD). The currency is inflationary at a rate of 3.69% per year, and holders of the currency have the option to stake their tokens and earn shares of that interest. In short, it is a cryptocurrency with trustless growth that encourages and rewards long-term investment. Most importantly, you don’t need to give anyone access to your coins. You keep your keys, and you keep your coins.

How It Works
When you hold HEX, you can interact with the smart contract to Stake some or all of your tokens to the staker pool. You set up how many HEX you want to stake and how long you would like to Stake to last. While your HEX is in the staker pool, it earns a share of the 3.69% inflation, proportional to the size of your stake and its length (the longer you stake, the greater your portion of shares). At the end of the Stake, you send a signed transaction to the smart contract to end your stake, returning your HEX and any additional HEX earned during the stake from the staker pool. If you end your stake early (“Emergency Unstake”), you pay a penalty which is put into the staker pool payouts, and is distributed to other stakers (along with the standard 3.69% inflation). If you end your stake later than your scheduled end date, your stake suffers a 1% penalty each week until you end it (with a 2-week grace period); that penalty is also distributed to the staker pool. So, the payouts from the staker pool for stakers are made up of the 3.69% inflation, along with any early or late stake penalties incurred by other stakers.

Any HEX that are staked cannot be sent or traded and are locked to the contract until the stake is ended. So, the downside to staking is that you do not have the option to transact with your HEX. Of course, the fewer people stake, the larger the share of the staker pool for those who do stake. So, if 50% of HEX in circulation are staked, those stakers actually will be earning a greater share of the inflation; their stake might actually grow at a rate of 7.38% (depending on how long they stake relative to other stakers).

Why is that cool? The game theory involved in that balance means that the tradeable supply (that is, HEX that is not staked at any given moment) will be fluctuating based on where traders see greater advantage. The trading price of HEX will likely increase when the tradeable supply is lower, incentivizing fewer stakes; when fewer people stake, that then increases the available supply, lowering the price, but making the growth of staked HEX increase since the stakers will receive a greater share of the pool.

If you want a deeper dive, check out this Google Document, prepared by members of the community, to give a more detailed overview.

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