# 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](https://docs.hover.market/kyc-and-location-restrictions). ### 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.