Dec. 5, 2024 HashKey, one of the biggest names in the cryptocurrency exchange space, has earmarked an allocation of its own native token, HSK, to the internal team members. In this move, 30% of the total token supply, or 300 million tokens, will be set aside on a 36-month unlocking schedule.
Today release HashKey announced its tokenomics strategy to promote the long-term growth of the HashKey ecosystem. The tokens on the market will not be released until the tokens complete a minimum three-month lock-up period, followed by a linear release over the next 35 months, producing a staggered introduction to the market.
HashKey Clarifies HSK Tokenomics and Incentives Structure
“We’d like to clarify key aspects of HSK’s tokenomics and team incentives structure: HashKey has a total supply of 1 billion tokens with 300 million allocated for team incentives,’ stated HashKey in its official release.
HashKey emphasised that the allocation is for ecosystem growth that includes licensed exchanges, investment services, tokenization, and infrastructure solutions. In addition to utility in exchange fee payments, trading discounts, and community incentives, the tokens also have utility.
The firm imposed strict rules for issuing, holding, and selling tokens by members of the team in order to prevent token misuse. Moreover, former employees who leave do not get early or full token unlocks, limiting the potential for premature sales to unfairly erode market stability.
HSK to the market began introduction on Nov. 7 with deposits opening, with spot trading of HSK/USDT pair starting from Nov. 26. The next day withdrawals began. Marketing and Business Development takes 65% of tokens, leaving 01% for the team.
According to data from CoinGecko, HSK is down 9.4 percent in the past day at the time of writing and is trading at $1.31. Nevertheless, the token has posted a jump of over 20 percent within the last week, putting the fully diluted valuation at $1.3 billion.
A double-edged sword, 30% of team incentives can be to the investors who put money in. The positive side of such an allocation is that it encourages team members to focus on project success and development over the long term. The slug-out period limits the risk of abrupt market disruptions, particularly pump and dump.
Yet, reserving a significant amount of tokens for insiders may lead to supply pressure upon the release of the lockup period. Large sales volumes will be sold by team members, which can oversupply the market and depress prices.
Investors are urged to watch HashKey’s progress on its development milestones and timing on the unlocking timeline. Key indicators of a firm’s long-term viability will be transparency in the firm’s operations and adherence to its tokenomics strategy.
Due to the current volatile state of the cryptocurrency market, HashKey’s method of incentivising its team and distributing its token will probably be turned into a case study as to how to balance internal incentives with investor confidence.
