Hex is a smart contract-executed token on the Ethereum network. The website markets itself as a platform to gain 40% annual returns through “certificates of deposit.”
The founder uses the pseudonym Richard Heart for marketing purposes, but his real name is Richard J Schueler. He is known for his appearances at cryptocurrency conferences, YouTube videos, and live streams.
This article will guide you through how to stake HEX tokens to make a profit.
What is HEX?
HEX is intended to serve as a value storage solution that will replace the traditional financial market’s deposit sheet as a blockchain component. It also aims to take advantage of the decentralized finance ecosystem within the Ethereum network.
HEX operates on the Ethereum network for transactions, such as sending and receiving HEX tokens and interacting with the HEX smart contract. The smart contract, on the other hand, holds the consensus code and investment mechanism.
With HEX, users can invest their coins for a portion of the new HEX coin issuance or inflation. It also has features that encourage price growth and discourage actions that harm the price. The HEX smart contract discourages early withdrawal of investments by penalizing the investor and rewards those who hold larger amounts of HEX for longer periods.
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How Does HEX Work?
According to the hex.com website, CDs, also known as Certificates of Deposit or Time Deposits, are worth trillions of dollars, which is more than gold, credit card companies, and cash. They offer higher interest rates compared to savings accounts but require the deposit of money for a fixed period.
Banks benefit from poor customer service, early withdrawal fees, and automatically renewing deposits at lower rates while paying low interest. The constant printing of new money decreases the value of the existing currency.
HEX aims to eliminate the inefficiencies of traditional currencies, banks, and payment networks through secure peer-to-peer technology. HEX has outperformed traditional bank CDs as it operates differently and utilizes a new method of monetizing the value of money, making the depositor the “bank.”
Using blockchain technology, HEX aims to provide a more efficient and secure alternative to traditional banking and financial systems. With HEX, you have control over your funds and are not subject to the limitations and fees associated with traditional banking systems.
HEX also provides a way to potentially earn higher returns on your savings through its unique approach to monetizing the time value of money. Overall, HEX presents a new and innovative way to handle your financial assets, giving you greater control and potential returns.
Individual investors have three options to obtain HEX. Firstly, they can demonstrate that they possess a specific quantity of Bitcoin (BTC) by using their private key to sign the transaction. Secondly, they can exchange Ethereum (ETH) for HEX. And thirdly, they can get HEX by referring a friend. After obtaining HEX, users are motivated to “stake” the token, which earns them interest paid in HEX, the amount of which depends on the duration of staking and the overall staking of HEX by all users.
How to Claim HEX?
Once you get HEX, you can hold onto it, sell it, or put it into investment. By investing in HEX, you will receive returns based on a reward system inspired by bank certificates of deposit.
You can opt to “stake” your HEX for a period ranging from 24 hours to 15 years, with longer staking periods leading to higher rewards. The HEX TruthEngine incentivizes users who declare their intended holding period and potential sell date. However, you will face a penalty if you decide to end your stake prematurely.
If you had Bitcoin in your wallet before December 1, 2019, you were eligible for a free claim. To do so, you needed to install MetaMask. If you had ETH and wanted to convert it into HEX directly, you could use Adoption Amplifier or the Uniswap exchange. Both are secure, peer-to-peer blockchain-based platforms that do not require sign-ups.
To finalize the claim process, a minimal gas fee must be paid to process the claim on the Ethereum blockchain. This fee will only cost a few cents worth of ETH, measured in USD, and must be paid to the Ethereum address where you plan to claim HEX.
Before you begin the staking process, several steps need to be followed:
- Install MetaMask (get the MetaMask wallet extension from MetaMask.io)
- Purchase ETH (on MetaMask through the Wyre or CoinSwitch buy button)
- Exchange ETH for HEX
- Start staking (visit go.hex.com, connect your MetaMask wallet, and start staking HEX)
How to Stake HEX?
The HEX system enables users to secure their HEX coins in return for a portion of the newly issued HEX coins or inflation. It features elements aimed at promoting actions that drive up the price while discouraging actions that negatively impact the price.
The HEX smart contract punishes those who prematurely end their investment by reducing their rewards and rewards those who stake large amounts of HEX for extended periods.
There is no limit to the number of stakes an address can hold. According to the HEX website, to maximize your HEX accumulation, it is recommended to stake for as long as you are comfortable to receive the most benefits from the LongerPaysBetter bonus (which offers a 20% bonus for each additional year, up to a 200% bonus (3x).
The more time you commit to staking, the greater the rewards you’ll receive. By staking for ten years, you can receive up to a 200% increase in bonus shares, which means your shares can triple in value. If you stake for a shorter period, here’s what you can expect:
- One month: approximately 1.7% bonus shares
- Three months: approximately 5% bonus shares
- Six months: approximately 10% bonus shares
- One year: approximately 20% bonus shares
- Two years: approximately 40% bonus shares
- Three years: approximately 60% bonus shares
- Five years: approximately 100% bonus shares
- Eight years: approximately 160% bonus shares
- Ten years: approximately 200% bonus shares.
Remember that the “LongerPaysBetter” bonus offer is capped at ten years.
To summarize, you must have a MetaMask wallet and Ethereum installed to stake HEX. Go to go.hex.com and connect your MetaMask wallet by clicking “connect” in the top right corner.
Then click “stake” and select the amount and duration period. The longer the duration, the more shares you receive, and the better your ROI will be. The maximum duration is 5555 days. Once you have confirmed the transaction on MetaMask, your HEX will be staked within a few minutes.
Those who stake larger amounts of HEX may receive bigger bonuses. There is a 14-day grace period to end the stake when it expires, after which there is a penalty of 1% per week for each week that it has not ended.