Tokenomics

The Hydro team has carefully designed tokenomics to ensure low inflationary characteristics and maximize gains for active users of the protocol. The HDRO token is the primary utility and governance token on Hydro Protocol, and has a max supply of 1 billion (1x10^9)
The token supply of 1,000,000,000 HDRO tokens have been distributed as follows:
Token Distribution of HDRO Tokens
Genesis Incentives
2%
Public sale
5%
Investors
10%
6 months lockup +10% first serve+ linear unlock for 18 months
Team
12%
6 months lockup + linear unlock for 42 months
Farming
10%
Liquidity Reserve
10%
Treasury
51%

Token Value Accrual

The success and value accrual for the HDRO token is directly and wholly correlated with the success of Hydro Protocol as a protocol. This means that the more hINJ is minted, the value of HDRO will increase and be sustainably managed.

The Buyback Mechanism

Due to a built-in buyback mechanism that is implemented, the HDRO token will be able to achieve a healthy maintenance to its value, and sustainably. Recall that the primary source of revenue that accumulate from the three features are denominated in INJ. Hydro Protocol will convert up to 70% of those fees to ensure that the HDRO token is sustainably maintaining its value in the long run.
These fees will be collected and then used to buyback the HDRO token to add a safe floor to the HDRO token.
The Fee Share
As part of a deflationary tokenomics design, a portion of fees that are collected from the features (up to 30%) will be redistributed to xHDRO (HDRO governance stakers) holders.
There will be a 10% annualized performance fee on the Hydro's core features. Collected performance fees will be accumulated for interval HDRO token buybacks. This will further accrue value for the HDRO asset. Read more on HDRO section

HDRO & xHDRO Utility

As the primary native token, the HDRO token has multiple other uses that can be applied across Hydro Protocol. Some use case examples include:
  • Staking for a share of transaction and performance fees (up to 30%)
  • Amplified yield boosters on Farming
  • Components on the RYA index
  • Governance on Hydro Protocol: RYA component changes, text proposals etc.