Vote & Claim

xHONO Utilities

xHONO is the governance token for the HONO Protocol and offers several important utilities that allow holders to participate in decision-making and earn rewards. Here's how it works:

1. Governance Voting

xHONO holders play a critical role in the governance of the HONO Protocol. As the governance token, xHONO allows holders to vote on major protocol decisions raised by the governance committee. These decisions can include updates to the protocol, changes in strategy, the introduction of new features, or adjustments to existing mechanisms. Governance is decentralized, meaning xHONO holders collectively make important decisions that shape the future of the protocol.

• How Governance Works: Proposals are submitted by the governance committee and can be discussed by the community in the forum. After sufficient discussion, xHONO holders vote on these proposals. The outcome of these votes directly impacts how the HONO Protocol evolves.

2. Emission-Directing Voting Mechanism

xHONO holders have the power to influence the distribution of newly minted HONO through an emission-directing voting mechanism. This is done through two types of "pool minters," which are smart contracts that mint HONO based on incoming revenue.

• Master Pool Minter: This pool converts 10% of incoming master revenue into HONO. Of this, 2% is made available for xHONO holders to convert into HONO, while the remaining 8% is sent to the loan pool for future projects.

xHONO holders can stake their tokens to adjust how much HONO is allocated to each pool. The default weight distribution is:

• Loan Pool: 800 points (80% of emissions)
• xHONO Pool: 200 points (20% of emissions)

By staking xHONO, holders can change these allocations, allowing them to influence how the protocol grows and generates value.

3. Conversion to HONO

xHONO holders can convert their xHONO into HONO at a 1:1 ratio at any time. A small 2.5% fee applies to all conversions, which is paid in ETH based on the HONO price at the time of conversion.

In summary, xHONO gives holders a voice in the governance of the protocol, allows them to influence key emissions decisions, and offers flexible options for converting and managing their holdings. By participating in governance, staking, and conversion, xHONO holders actively contribute to the growth and evolution of the HONO ecosystem.