> For the complete documentation index, see [llms.txt](https://docs.hover.market/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.hover.market/hover-tokenomics.md).

# 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](/kyc-and-location-restrictions.md).

### 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.

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