Huobi is a decentralized cryptocurrency exchange and cryptocurrency whose value is linked to the performance of the exchange, the supply of Huobi (HT) tokens and the Huobi ecology.
Huobi (HT) token holders are able to have involvement in the evolution of Huobi’s Autonomous Digital Asset Exchange (“HADAX”), by voting on which cryptocurrencies should be listed on the Huobi exchange. Voters are then rewarded with HTs if their favored cryptocurrency is listed.
The HTs are offered by projects looking to be listed as an incentive for voters to vote for their project. HTs are distributed based on a pre-announced number to each voter and are returned to the project should the project not get listed.
For trading on the HADAX, there are 5 different trading account types that provide varying discounts dependent upon the monthly fee paid. VIP1 gives a 10% discount and the exchange charges a monthly fee of 120 HTs / month. VIP5 gives 50% discount, but charges 12,000 HTs / month.
Huobi was founded in 2013 by Leon Li, with the number of HTs capped at 500 million. Of the 500 million HTs, 20% (100 million) HTs reserved for user rewards and platform operations; 20% (100 million) HTs reserved as team incentive subject to a 4-year vesting scheduled. The remaining 60% (300 million) HTs are distributed for free as a benefit for the purchase of “points cards” (with a daily quota).
Each season, Huobi buys back certain portion of HTs on the open market, with all buy-backs held in Huobi’s User Protection Fund, which has been established to protect users’ interests and compensate losses in cases of emergency.
In August 2018, Huobi rolled out Huobi Mining Pool and released 6 billion Huobi Pool Tokens (“HPTs”), 2 billion of which were airdropped to HT holders and 4 billion to Huobi Pool community members.
Huobi Mining Pool was established to mine cryptocurrencies with proof-of-work protocols.
Some distinct differences and characteristics of Huobi include:
- There are no physical HTs, only virtual.
- There is a finite number of HTs, capped at 500 billion.
- The very nature of Huobi’s decentralized exchange means that trading is supported 24-hours a day.
- Interested parties can also join the Huobi Mining Pool to mine PoW cryptocurrencies.