Article Updated: May 19th, 2023
This is an introduction to our native HONEY token. HONEY is primarily a reward token for NFTHive users. In this article, we’re going to explain how it is distributed, what its use cases are, what supply and distribution look like, and what the future holds for HONEY.
Honey is distributed to Buyers and Sellers on the marketplace. If you are buying or selling NFTs on NFTHive instead of Atomichub or Neftyblocks, you earn HONEY at a certain rate to the WAX you pay in market fees to us.
On WAX all NFT marketplaces share the same listings and auctions. The seller pays 2% in market fees. These fees are split between the marketplace an NFT was listed on and the marketplace it’s being bought on.
Therefore, if you buy an NFT for 100 WAX on NFTHive, we receive 1 WAX in fees through your purchase, and another 1 WAX if the seller also listed the NFT through NFTHive. In that case, both parties receive a certain amount of HONEY as a reward.
The amount is accumulated and distributed on a daily basis. Our system analyses trading activity and prevents rewarding wash trading so users can’t buy and sell from themselves (even though this generates fees).
The other way of earning HONEY is through buying or selling drops on NFTHive. Drops are direct sales from creators to their collectors. In this case, both parties also receive 1% of the amount they pay or receive in WAX in HONEY.
The amount of HONEY being rewarded adepends on the amount of tokens already distributed. The first 1 Million tokens are distributed 1:1, which means for every WAX paid in fees, you will receive 1 HONEY.
There’s a total supply of 10 Million HONEY. The first Million was minted to the distribution contract. The tokens distribution will be reduced by 20% after x million tokens have been rewarded. This will result in the following rates:
1 — 1000000: 1.0 HONEY : 1.0 WAXP
1000001 — 2000000: 0.8 HONEY : 1.0 WAXP
2000001 — 3000000: 0.64 HONEY : 1.0 WAXP
3000001 — 4000000: 0.512 HONEY : 1.0 WAXP
4000001 — 5000000: 0.4096 HONEY : 1.0 WAXP
5000001 — 6000000: 0.32768 HONEY : 1.0 WAXP
6000001 — 7000000: 0.262144 HONEY : 1.0 WAXP
7000001 — 8000000: 0.2097152 HONEY : 1.0 WAXP
8000001 — 9000000: 0.16777216 HONEY : 1.0 WAXP
One Million HONEY are reserved for eventual investors, exchange listings, and other purposes. They will not be touched before at least the same amount has been released through rewards.
The main use case for HONEY is staking the tokens at the reward contract. HONEY stakers receive 33% of the secondary market fees made on WAX’s core atomicmarket contract. In addition to that, HONEY stakers receive 50% of all fees made through drops in WAXP & HONEY. Since the introduction of the 33% market share, 7449.67171530 WAX have been rewarded to HONEY stakers.
HONEY is also a currency that is frequently used for Drops.
Lastly, HONEY can be used to rent CPU at twice the rate of WAX. CPU is a resource on the WAX Blockchain. It determines the amount of daily free transactions a user can make. Users have to stake WAX to CPU to be able to process more transactions. If they can’t afford that, they can instead rent CPU for a smaller fee (usually 0.25% — 0.5%) for 1 to 10 days.
Claiming and Staking HONEY
You can claim and stake on the HONEY overview page at https://nfthive.io/honey.
Simply log in with your WAX Wallet and find information about distributed tokens, total staked HONEY, your share, your balances, etc.
Current HONEY stats are the following:
- Total Supply: 10000000.0000 HONEY
- Total HONEY rewarded: 161669.9587 HONEY
- Total HONEY staked: 103381.5764 HONEY
- Secondary Market Fees rewarded: 20864.47843188 WAX
- Stake Holders: 692