🪙Tokens
Last updated
Last updated
HOPE token is designed to be used as a medium of exchange. The built-in stability mechanism in the protocol aims to maintain Hope's peg to 0.001 ETH On Arbitrum network token in the long run.
Note that HOPE actively pegs via the algorithm, but that does not mean it will be valued at 0.001 ETH on the Arbitrum network at all times as it is not collateralized. HOPE is not to be confused for a crypto or fiat-backed stablecoin.
HOPE Shares (DREAM) are one of the ways to measure the value of the HOPE Protocol and shareholder trust in its ability to keep HOPE close to the peg. During epoch expansions, the protocol mints HOPE and distributes it proportionally to all DREAM holders who have staked their tokens in the Boardroom.
DREAM holders have voting rights (governance) on proposals to improve the protocol and future use cases within the hope finance ecosystem.
DREAM has a maximum total supply of 70000 tokens distributed as follows:
DAO Allocation: 5500 DREAM vested linearly 180 DAYS
Team Allocation: 2499 DREAM vested linearly over 180 DAYS
Remaining 62000 DREAM are allocated for incentivizing Liquidity Providers in two shares pools for 180 DAYS
HOPE Bonds (WISH) main job is to help incentivize changes in HOPE supply during an epoch contraction period. When the TWAP (Time Weighted Average Price) of HOPE falls below 0.001 ETH, WISHs are issued and can be bought with HOPE at the current price. Exchanging HOPE for WISH burns HOPE tokens, taking them out of circulation (deflation) and helping to get the price back up to 0.001 ETH. These WISH can be redeemed for HOPE when the price is above the peg in the future, plus an extra incentive for the longer they are held above the peg. This amounts to inflation and puts pressure on HOPE when it is above the peg, helping to push it back toward 0.001 ETH.
Contrary to early algorithmic protocols, WISHs do not have expiration dates.
All holders are able to redeem their WISH for HOPE tokens as long as the Treasury has a positive HOPE balance, which typically happens when the protocol is in an epoch expansion period.
