Hector DAO is a decentralized organization that seeks to create decentralized utility for its community. The Hector Network is powered by the Hector DAO (Decentralized Autonomous Organisation), and its native token, HEC, and TOR token.
The price of Hector DAO’s token, HEC, is determined by market forces and the demand for it from investors. As such, Hector DAO’s price fluctuates over time based on factors like supply and demand, news events, regulatory changes, etc.
Hector Network uses the TOR stablecoin as a medium of exchange and storage. It is pegged to the US Dollar and is used to facilitate transactions within Hector Network’s ecosystem.
This guide will provide you with insight into Hector DAO’s structure and how you can use it as a tool for investing or trading in the cryptocurrency market.
Hector DAO emission plan
On March 29th, 2022, the Hector DAO voted to introduce an emission plan to effectively set a supply cap on their HEC token. Since then, the development team has been diligently working through the intricacies of implementation in order for Hector Network to move forward without inflationary concerns.
Certik conducted an audit of the emission plan in August of 2022 and by October 12th, it had officially superseded the network’s Rebase program. This progression demonstrates Hector Network’s capability to institute a steady limit on tokens minted while still being able to make gradual and predicted changes to APR – all while allowing users who put away their tokens for a period of time to reap increased rewards.
The progressive nature of the emission plan allows for the gradual contraction of the HEC supply, leading to its ultimate cessation in two years’ time. This initiative combines sound scientific principles with an understanding of how to ensure sustainable growth in the future.
By allotting a portion of each emission to the Hector Network treasury, safeguards resources necessary for expansion and provides flexibility when seeking new networks or markets on which to bond. This structured plan will run for 104 weeks, spanning 13 periods of 8 weeks each, during which rewards will reduce to 75% of their preceding level.
Stablecoin TOR
TOR is an ERC20 token that can be minted and redeemed only under specific conditions. If the Liquidity Pool is comprised of more than 65% TOR, redeeming becomes available to combat the over-saturation of the market. However, if there is less than 45% of TOR in the Pools, minting is allowed in order to prevent de-pegging. Maintaining a careful balance between these two scenarios is vital for protecting against de-pegging and over-saturation, as it serves as a cornerstone for preserving the proper functioning within the market.
To ensure a high level of security, 100% of the necessary DAI to mint new TOR tokens is securely stored in the Hector Network Treasury. The treasury ensures that when users redeem their TOR, they can be confident that whatever DAI they receive comes directly from the Hector Network Treasury. This guarantees safety and trust between both our user base and partner networks while maintaining the integrity of our liquidity pools.
The TOR stablecoin allows Hector Network to maintain price stability during periods of extreme volatility – especially when Hector DAO’s token price fluctuates.
By introducing the TOR stablecoin into Hector Network, users can now purchase HEC directly from their wallets without having to worry about its value being impacted by market forces.
It also allows Hector Network’s inflationary measures to reduce more gradually as opposed to quickly via rebasing; this means that users who have held HEC for an extended period of time will be rewarded with a greater yield while still ensuring sustainable growth in Hector Network’s price.
Hector DAO security
Hector DAO has implemented an array of security measures designed to mitigate the risk of security threats from internal and external forces.
The network is managed using five core security protocols. These include multi-signature authentication establishing multiple levels of authorization within the user accounts, website security providing comprehensive protection against malicious attack vectors, comprehensive audits providing detailed critiques of network operation, initially locked liquidity pools maintaining asset integrity, as well as KYC verification and locked marketing/development funds ensuring effective use of resources.
By leveraging these and other security protocols Hector DAO is able to address a variety of internal and external risks without compromising user experience.
How to get HEC
HectorDEX is a powerful tool for swapping any token on any network to another. It provides the most direct route to acquire HEC as all bridging and swapping are handled in the backend, creating a smooth experience for the user.
To access it, enter the dex and use the left-hand navigation to guide you. Reviewing one’s transaction is crucial before executing it as it will include the number of tokens, their origin and target networks, and native gas tokens.
With quality assurance measures in place, users can be sure of a secure and efficient token transferral process while using HectorDEX.
Staking on Hector DAO
Staking your HEC is a straightforward and rewarding process.
After connecting your wallet to the corresponding dApp, opt to stake through the left-hand navigation bar, then select the amount of HEC you would like to stake.
Once the activity is confirmed, any incoming HEC will automatically generate sHEC tokens for users to track and accumulate in an autopilot fashion.
Remember that first-time stakers will find it necessary to approve their transactions from within their wallet as a security measure. Obtaining a utility token such as sHEC is only possible after adding it to one’s wallet.
Bonding on Hector DAO
Bonding is a crucial part of the liquidity protocol as it involves users giving tokens in exchange for HEC. Users bond in order to get HEC at a discounted price, thus increasing their value proposition when acquiring Hector DAO tokens.
There are two types of bonds that can be used: 4,4 and 1,1 bonds. The 1,1 bindings require manual claiming and staking by the user in order to earn interest, whereas 4,4 bonding pays out sHEC which automatically stakes and earns interest. In addition, 4,4 bonds are locked for four days with no claim ability during this period versus 1,1 bonds that vest 20% per day with the vested portion being always claimable.
Hector DAO price (HEC)
The Hector DAO price is determined by its utility token HEC. Hector DAO is designed to function as a liquidity provider for the TOR stablecoin, creating an interdependent relationship between two tokens.
The Hector DAO price fluctuates depending on the demand for sHEC and TOR tokens; when demand rises, the Hector DAO price increases due to market forces of supply and demand.
The Hector team also works to ensure that there is a sufficient amount of liquidity in their pools such that users can always peaceably exit without any disruption in pricing or liquidity.
As Hector Network continues to build its infrastructure and increase adoption from users worldwide, it’s likely that we will see more growth in both markets, thus raising the Hector DAO price.
It is also possible that Hector DAO will list on more exchanges, allowing users to easily access the Hector Network and its tokens.
In short, Hector DAO’s value is determined by the demand for sHEC and TOR tokens, as well as other market conditions such as liquidity and exchange listing status.
As Hector Network continues to expand its user base, the Hector DAO price will continue to grow as the network matures over time.
Conclusion
Hector DAO is a revolutionary decentralized organization that enables users to efficiently govern, transact, and stake on the Hector Network.
Users can purchase HEC tokens, access HectorDEX for token swaps, and stake with HECs to generate sHECs and bond tokens to get discounted Hector DAOs.
The Hector DAO price is determined by its utility token HEC which fluctuates depending on the demand of sHEC and TOR tokens as well as other market conditions such as liquidity and exchange listing status.
As Hector Network continues to build its infrastructure and increase adoption from users worldwide, it’s likely that we will see more growth in both markets, thus raising the Hector DAO price over time. With Hector DAO, users can enjoy a secure decentralized ecosystem with global access and opportunity.
Source: https://www.cryptopolitan.com/hector-dao-all-you-need-to-know/