CRYPTO FREEDOM BOOTCAMP

HEX, launched in December 2019 by Richard Heart, is an innovative cryptocurrency focused on value storage through staking. Users are rewarded for locking up their tokens for a set period, similar to a decentralized savings account. In this article, we explore the origin of HEX, the distribution during the Adoption Amplifier (AA) phase and Big Pay Day (BPD), key addresses, the growth of the HEX supply, and why investing in HEX could be a smart move for the future. We’ll also explain how T-Share prices increase and how HEX sets itself apart as the “better Bitcoin.”

The Origin of HEX: From BitcoinHEX to HEX

HEX began in 2018 as BitcoinHEX, aiming to create a Bitcoin derivative that rewarded users for holding and staking their tokens. Richard Heart saw an opportunity to improve Bitcoin’s traditional Proof of Work system by rewarding users instead of miners. In 2019, the name was changed to HEX to give the project its own identity. On December 2, 2019, HEX officially launched, marking the start of the Adoption Amplifier phase to distribute HEX.

The Adoption Amplifier Phase

The Adoption Amplifier (AA) phase was designed to attract new users and inject liquidity into the system. For 351 days, from December 2, 2019, to November 17, 2020, participants could place Ethereum (ETH) into a smart contract in exchange for HEX.

• On Day 1, 1 billion HEX was made available for distribution among participants.
• From Day 2 onward, the daily allocation was reduced to 500 million HEX and remained constant until the end of the AA phase.
• HEX was distributed based on the share of ETH each participant contributed, ensuring decentralized distribution and linking HEX value to ETH.

Big Pay Day (BPD)

Big Pay Day (BPD) on November 19, 2020, was one of the most memorable moments in HEX history. It marked the end of the AA phase and rewarded early stakers. The HEX paid out that day came from unclaimed tokens originally meant for Bitcoin holders via the Bitcoin Snapshot Claim.

• Bitcoin holders could claim 10,000 HEX per BTC, but unclaimed tokens were added to the BPD pool, totaling an estimated 30 billion HEX.
• Stakers who locked their HEX before BPD received extra bonuses based on stake size and duration.
• BPD led to a significant boost in staking rewards, distributing millions more HEX.

Key Addresses in the HEX Ecosystem

Two important addresses play a vital role in the HEX ecosystem:

1. Origin Address (OA)
The Origin Address received a significant portion of the HEX supply during the AA phase and through staking rewards. It’s estimated to hold over 50% of all HEX.

• The OA has never sold HEX, contributing to price stability.
• Since most of its HEX is not staked, staking rewards remain high for others.
• By not selling, the OA reduces market pressure and promotes long-term value.

2. Flush Address
Used during the AA phase to collect daily ETH contributions. All ETH deposited by participants was sent to this address.

• The Flush Address received large daily ETH deposits during the AA phase.
• Its purpose remains unknown, sparking speculation, but it played a key role in early HEX distribution.

HEX Supply Growth Through Inflation

HEX has an annual inflation rate of 3.69%, meaning new HEX is created yearly. However, this inflation primarily rewards stakers, limiting its impact on the open market.

Supply Growth Over 5 Years:

• Year 1: 570B + 3.69% = 591.033B
• Year 2: 591.033B + 3.69% = 612.856B
• Year 3: 612.856B + 3.69% = 635.407B
• Year 4: 635.407B + 3.69% = 658.727B
• Year 5: 658.727B + 3.69% = 682.861B

Despite this growth, most new HEX is restaked by long-term stakers, keeping sell pressure low.

Why Inflation Doesn’t Directly Affect the Market

Most newly minted HEX is locked up again:

• 5555 Stakes: Many users lock tokens for 5555 days (≈15 years), removing them from circulation.
• Early Endings: When stakes are ended early, 50% of penalties go to other stakers and 50% to the OA, which doesn’t sell, keeping those tokens off the market.

This structure reduces circulating supply and supports HEX price.

The Role of T-Shares and Their Rising Value

HEX rewards are distributed based on T-Shares. These T-Shares represent the share a staker has in the reward system. As more people stake their HEX, T-Shares become increasingly expensive, which is crucial for understanding the future value of staking in HEX.

The price of a T-Share is determined by the T-Share Rate, which increases every time a stake is ended. When HEX was launched, one T-Share cost 10,000 HEX. Today, a T-Share costs as much as 37,016 HEX. This increase is directly tied to the staking dynamics of the ecosystem, making it increasingly expensive for new users to receive the same rewards.

Let’s look at a scenario: Suppose the price of HEX rises back to $0.50, as it did in 2021. This would mean the price of one T-Share would be as high as $18,508 (37,016 HEX × $0.50). By comparison, when a T-Share still cost 10,000 HEX in the early days of HEX, one would only pay $0.57 (10,000 HEX × $0.000057). This illustrates the massive increase in value for early investors and underscores how important it is to get in early.

HEX: The Better Bitcoin

The way T-Shares gain value — combined with inflation rewarding only stakers — makes HEX “the better Bitcoin.” While Bitcoin requires expensive mining, anyone can earn HEX by staking. Supply is also limited by long lock-up periods.

• Bitcoin miners need constant hardware upgrades to stay competitive.
• Early HEX stakers, however, continue earning without new investments or upgrades.

Case Study: Seeing is Believing

An OG Hexican staked 500,000 HEX on January 15, 2020, for 10 years, costing just $67.88 (today worth ~$1,100).

• Received 149,465 T-Shares.
• Earns ~1,120 HEX daily (at 7.5 HEX per T-Share/day).
• Over 10 years = 4,091,604 HEX in rewards, plus 535,049 BPD bonus and the original stake.
• If HEX hits $2.50 in 2030, the total value = $12.8 million. That’s 188,813x ROI.

Conclusion

Investing in and staking HEX today can lead to strong long-term returns. T-Share prices continue to rise, and the structure of the OA and staking system reduces market sell pressure. With the potential for HEX to reach or surpass its previous highs, early adopters may benefit from both price appreciation and generous rewards.

Compared to Bitcoin, HEX offers a more accessible, fairer, and energy-efficient system. Early stakers are rewarded consistently, without the risk of being outperformed by newer participants with better equipment — as is the case with Bitcoin miners.

HEX isn’t just an alternative; it’s a next-generation store of value. The time to stake is now.