The HGET token is a native utility and governance token of the Hedget platform. It will be issued on the Ethereum network as an ERC-20 contract and will have representation on a Chromia sidechain.
Firstly, HGET will serve as a governance token of the HGET DAO.Ā In the preliminary stages, the DAO will vote on default assets, options parameters and UI improvements.
As the platform is further developed, HGET tokens will also be used to determine transaction fees, reserve requirements, and general functions and features of the platform.
Secondly, it will be used to prevent spamming of orders which can lead to API overloads and order book manipulation. HGET tokens will need to be staked to interact with the platform.Ā Staking requirements will increase as the monetary value and frequency of a user’s interactions increase.
Lastly, the HGET token will be used as a security measure and reputation engine in the future when margined options are implemented. Options writers who wish to offer options without providing 1:1 collateral will need to stake HGET tokens which will be used to purchase fully collateralized options as a hedge.Ā This mechanism ensures end users cannot be adversely affected by the insolvency of an options writer.Ā Options writers who do not stake an adequate supply of HGET for this purpose will be given a poor rating, allowing front end users to choose a different writer. In extreme cases, writers with very low ratings will not be shown in the Hedget UI at all.