Huobi Token (HT) is the native cryptocurrency of Huobi Global exchange. It belongs to a group of cryptocurrencies often referred to as exchange tokens. Huobi Token was issued and distributed in 2018 to Huobi users according to a special giveaway plan where platform users were rewarded with free tokens. Of the total supply of 500 million HT, 300 million were distributed to Huobi’s users, 100 million are for platform rewards and operations, and another 100 million is a reservation for team incentives. After the giveaway, users were able to trade it and benefit from the opportunities that the Huobi Token made available on the Huobi platform.
By design, the amount of Huobi Tokens in circulation gets lower every month because of a mechanism called burning. Token burn events happen when Huobi repurchases and destroys the token. Huobi allocates 20% of its revenues each month to buy back and destroy HT. More specifically, 15% of its revenues go to burning HT from circulating supply, and the remaining 5% is spent to burn HT team incentive rewards. Reducing the token supply helps to support the price of the token in the market and can increase its value over time. Another aim of these burns is to keep inflation low.
HT is an ERC-20 token which means it operates on the Ethereum blockchain. It is a decentralized digital asset whose value correlates closely with the popularity of Huobi’s platform. Therefore, HT holders will see the value of their holdings grow the more Huobi is increases its volume and market share. Even though the practical benefits of HT are available only on the Huobi platform, the token is tradable on other platforms as well. In the same logic, it is also possible to send them to hardware wallets.
There are many use cases for HT. Just holding HT in the Huobi exchange wallet lets users benefit from up to 65% in trading fee discounts. Holding HT also lets users access new crypto projects and earn tokens from them through the Huobi Prime platform. Huobi Prime gives anyone holding a prerequisite amount of Huobi Tokens the possibility to purchase a newly-launched token at a discount before it gets listed on the Huobi exchange. Now users can participate in token launches previously offered only to an exclusive group of investors.
Huobi Token owners can also put their tokens to work passively. Users can stake their HT to Huobi’s PrimePool to participate in new listing projects. All the user needs to do is lock their tokens for a certain amount of time. After that, they are rewarded with free airdrops of the new token. In other words, it functions as a tool to get tokens from new projects. The rewards are distributed based on the allocation the user is providing and the amount of time staked. These new project allocations could appreciate in value and enable any user to broaden their income sources. Primepool is also a safe way to earn because of the guaranteed payment.
There is also a popular way to earn interest by using the Huobi Token in Huobi’s own decentralized ecosystem, the Huobi ECO (HECO) Chain. HECO Chain is a decentralized, EVM-compatible public blockchain with smart contracts compatibility and high-performance transaction support. It has cross-chain functionality and low gas fees. Current decentralized applications (dapps) on HECO have decentralized mining and staking functions, debit and credit mining capabilities, lending projects, and various other financial projects are on the way. You can see the complete list of HECO dapps here. Staking HT can happen both directly through the Huobi Exchange or on the HECO network.
Huobi has a community-driven approach toward the future development of the platform. The HT includes a voting right that allows users to vote on various issues like future coin listings. For example, the decision about changing the token burn interval from quarterly to monthly was based solely on HT owner votes. The token is also a ticket to Huobi events such as Huobi’s Bitcoin Pizza Day. It’s an annual pizza day held by Huobi Global, where HT holders get exclusive rewards. In addition, various companies accept it as a payment for their services.
Even though the price of HT has been growing, the token’s broad range of applications and uses means that there are many other avenues for making a profit from holding HT than just executing a buy-and-hold strategy.The token includes benefits that privilege users to earn passively, be part of new projects, and enjoy many other benefits that make holding the token valuable also in the future.
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