Dialogue of a HEX Ecosystem Skeptic

December 18 2022 Written by AXiS ALiVE

In this blog post, we discuss the effects of the ICOSA-HEDRON smart contracts and how those economic systems integrate and support the HEX price long term.

Concerned User:

HSI "Recycling" is the least important part of the entire ecosystem. It is a behavioral component that allows those who have longer term plans to outpace the short term thinkers who are looking for liquidity. This constant zapping of liquidity from those participants will eventually lead to them being run dry of funds.

Meanwhile, everyone who staked ICSA, HDRN and HEX will benefit from the next bull run's price appreciation. It is not a flaw of the system that users with small brains will always try to constantly pull liquidity out of the system and inevitably run out of funds. They end up sitting on worthless stablecoins when things go parabolic in the future and this will force them to re-position into true DeFi assets, in effect, pushing up price. A large percentage of those who exited with usdc will have spent the funds elsewhere and have no more power in the system. This is the natural purification phase of a bear market cycle.

The whole point of ICOSAHEDRON is to make HEX price go up. When it does, your precious ICOSA and HDRN prices will go up in nominal USDC terms, as well. I have publicly stated before that I have never market bought ICOSA because the Value is in HEX TSHARES and HDRN, in my personal opinion. This point is reinforced by the explanation of the system by its founder @SIN3R6Y.

The HDRN being hyper-inflated into the supply will drop off drastically year-over-year to the point where simple supply and demand will cause prices to rise across the ecosystem. If TSHARES are getting more expensive (they always do) and HDRN minting bonuses disappear (as stakes fall off), then the amount of staking yield of ICSA and HDRN will be hyper deflationary over time.

This is the ultimate pumpamental and will take 7 more years to play out to its completion by my intuition. 200 million HEX staked 5555 prints 1 billion HDRN per month at today's current TSHARE price. Not many people have that much HEX to stake in such big batches for the long haul and when they do, they won't be selling them to the contract.

Tshare price is set to 5x minimum by 2035 which means it will take 1 billion HEX in 2035 to get 1 billion monthly HEDRON yield at that time. The system is going to run out of coin liquidity.

In a world where fiat is printed into infinity and stablecoins can be minted out of thin air, the HEX ecosystem will forever be tied to the deflationary TSHARE rate making it forever more valuable.

Any views expressed in the below are the personal views of the author and should not form the basis for making investment decisions, nor be construed as a recommendation or advice to engage in investment transactions.