Hover Tokenomics

The Hover Tokens

Hover uses a three-token model to foster token utility, encourage participation, and drive long-term sustainability.

HOV

The native Hover token. This is the standard fungible token with a total supply of 1,000,000,000 tokens. HOV can be obtained via token sale or purchased on centralized and decentralized exchanges.

A portion of protocol emissions is received in HOV. Upon staking, HOV is converted to esHOV at a 1:1 ratio.

esHOV

The staked, non-transferable token that offers rebates on borrowing, lending, and liquidation fees, as well as governance voting rights through the Hover Staking Program. Rebates and protocol emissions are received in esHOV, which can be converted to xHOV at a 1:1 ratio upon completion of KYC for eligibility determination.

xHOV

The staked, non-transferable token that offers rebates on borrowing, lending, and liquidation fees, governance voting rights, and access to Hover Rewards.

Requires KYC onboarding with Quadrata to establish eligibility.

Token Conversions

Users can stake HOV and convert it to esHOV (or xHOV with KYC) at a 1:1 ratio at any time. However, unstaking esHOV and xHOV and converting 1:1 back to HOV requires a 180 day unstaking period. Users can convert staked HOV to unstaked HOV in as little as 15 days, with a 50% burn penalty. If the user chooses an unststaking period between 15 days and 180 days, a proportional linear amount will be burned.