HUNT token is an ERC20 based cryptocurrency that works as the key currency for Hunt Town ecosystem to accelerate builders onboarding/bootstrapping within the Hunt Town guild and using its Web3 tools.
HUNT Token is a:
- 1.Base token to mint the HUNT Building NFTs
- 2.Key currency for the Hunt Town tools
- 3.Fair launch token for cross-platforms that target Hunt Town guild members
HUNT token is used as a binding token for the Town Hall Contract. Minting a new Building NFT requires users to lock-up HUNT tokens for one year. The locked-up tokens will be bound to the NFT, meaning that the ownership of locked-up tokens will belong to the owner of the Building NFT.
Minting 1 HUNT Building NFT requires 1,000 HUNT tokens to be locked-up for one year. After this lock-up period, the NFT holder can burn his/her Building NFT and the 1,000 HUNT tokens will be returned to the person.
This minting/locking-up and burning/releasing process between the Building (ERC721) and HUNT (ERC20) tokens is managed automatically by the following smart contract, and no one including the team has access to withdraw the locked-up tokens or change the logic of the smart contract. Again, the contract below does NOT have upgradeability or admin functions (learn more about this - https://ethereum.org/en/developers/docs/smart-contracts/upgrading/).
Town Hall Contract:
Currently the max total supply of HUNT tokens (ERC20) is 198,912,688 HUNT (as of November 17, 2022). Thus, the theoretical max total supply of HUNT Building NFTs (ERC721) is 198,912, meaning that the number of the Buildings cannot exceed this number because each Building NFT requires a lock-up of 1,000 HUNT tokens. Also, when more Building NFTs are minted, there will be less HUNT tokens in market circulation for the same reason.
For example, let’s assume that someone minted 10 Building NFTs, in this case 10,000 HUNT tokens will be locked-up. Since the date of the minting, the 10,000 HUNT tokens are kept for one year within the contract address and no one can access the tokens until the lock-up period finishes. So, the 10,000 HUNT tokens become inactive supply and that reduces the market circulating supply. When the person tries to burn the Building NFT during the lock-up period, the transaction request will be automatically denied.
After one year, the 10,000 HUNT tokens will still be kept within the contract address unless the holder burns some Buildings. If the person burns 3 Buildings, 3,000 HUNT tokens will be released to the person and these will contribute to the market circulating supply. But the other 7,000 HUNT tokens locked-up in the Building NFTs will still be considered semi-inactive unless the person burns them.
Powered by this Town Hall Contract system, HUNT tokens can work as a key utility token to run the Hunt Town ecosystem.
Hunt Town, as a Web3 builders guild, supports a variety of Web3 tools for guild members. Hunt Town not only provides its native no-code or low-code tools that the guild members can utilise right away, but also gathers the Web3 tools that are developed by the members and also tools from outside that target Hunt Town members.
HUNT token works as the key currency for Hunt Town tools to empower the Web3 builders’ activities. It can be directly used in each tool or be utilised as a vehicle token for different purposes. It can also be used as a means of payment for consuming services/products or instruments of rewards within the Hunt Town tools. The following cases are some examples of how Hunt Town tools can utilise the HUNT tokens.
Nomadtask (https://nomadtask.com/) is an on-demand task marketplace that enables individuals and businesses to utilise crowdsourced workers to achieve their marketing missions. These tasks include promoting content or social channels, increasing downloads or new users, creating review content about their products/services, running a survey, performing a beta test and much more.
Workers can join tasks and complete missions in exchange for a rate set by the task launcher (also called “Makers”). Workers receive their rewards in the form of USD Points that can be transferred into cryptocurrencies (HUNT, ETH, XRP, STEEM, TRX) or a Nomadtask coupon.
When a maker launches a task, the maker needs to set the total reward fund for his/her task and make the payment via HUNT token, or other methods such as ETH, BTC, STEEM, or credit card. As a key currency of HUNT Network, the conversion fee for HUNT is smaller than other methods.
Neverlose.money (https://neverlose.money/) is a lock-up smart contract HODL protocol on Ethereum that uses the losers penalty to pay a bonus to the long-term holders. It’s a first-ever gamified protocol for long-term crypto holders to motivate their long-term investment along with other holders led by the lock-up period breach penalty system.
Neverlose.money consists of the following sections:
- 1.Long-term locked-up asset element: users can create an asset element that is locked-up in a smart contract with a set binding period.
- 2.Breaking penalty fund: to enhance the long-term value investment, the users who break the smart contract within the binding period will be charged a 13% penalty fee. 10% of this penalty fund will be distributed to the active lock-up asset holders as a bonus, and 3% will go to the platform fees. There are no fees for the assets that complete the lock-up period.
The Neverlose Money contract supports Bitcoin (BTC), Ethereum (ETH), and HUNT tokens. As the key currency, the HUNT token’s TVL (Total Value Locked) on the Neverlose Money contract consists of more than 93% of the total TVL (as of November 17, 2022).
When a tool or platform tries to attract the Hunt Town guild members, the TGE (Token Generation Event) can be designed by a fair-launch token model rather than a simple airdrop event. In general, the fair launch model consists of the following criteria:
- 1.The exact same token generation rules are applied to all the participants for the TGE including the team/investors/advisors, etc.
- 2.TGE is designed to form a community-driven token system rather than focusing on funding or profits for the team or investors.
Mint Club (https://mint.club/), a bonding-curve backed token building protocol without the need for coding or providing liquidity, followed this fair launch model by utilising HUNT tokens to form a Hunt Town community-driven token system.
MINT token, the platform token of Mint Club, was distributed during a pre-sign up period and the total supply of the token was set by the one time token swap event. There was no token sale, and MINT token was only minted by burning HUNT token during that period. The swap required people to burn their HUNT (Ethereum chain) tokens to receive MINT tokens (BNB Smart Chain) with a 1 : 100,000 ratio. During this period, a total of 10,775,286 HUNT tokens (about 2 million USD market value at that time) were burned and swapped to set the initial MINT token supply.
Through this fair launch model utilising HUNT tokens, Mint Club has successfully formed strong initial supporters from the HUNT community and become a complete community-driven protocol.