1Hive is an economic protocol that follows a similar economic blueprint as Bitcoin and Ethereum, which is to issue a digital currency that would be distributed via a programmable function. However, the protocol doesn’t replicate some of the functions of the other cryptocurrencies, which is to follow a set of defined activities.
Instead, the 1Hive economic protocol thrives on the reliance of the community or users. This is commendable, considering that the concept of digital currency/cryptocurrency is based on the need to take away the intermediaries and foster peer transactions.
In this article, you will learn more about the 1Hive protocol and what it is out to achieve in the crypto-sphere.
The Role of the Users/Community
As a community-driven protocol, 1Hive thrives on the need to involve the users or community members in most of the decision-making processes.
Also, the protocol has a dedicated digital currency called Honey. This doubles as the native currency that helps the community members to take part in the ecosystem.
The general idea is that anyone who buys and holds the Honey digital currency is directly lending support to the growth of the 1Hive ecosystem, as well as conforming to the norms, cultures, and values that guide the broader 1Hive ecosystem.
The Honey Perspective
The community members of 1Hive are expected to work as a bee in the sense that they would work round-the-clock to ensure the success of the project. The community members can also go the extra mile to vote for or against proposals, as well as make propositions that would further increase the relevance of the 1Hive project.
Aside from that, the Honey digital currency is the native crypto token that powers most of the activities in the broader 1Hive ecosystem. This token can also be used via the open-source frontend hosted via the 1Hive website. Through this interface, the token holders can create and stake on new and existing proposals.
The second aspect of the digital token is the creation of a dedicated trading interface called Honeyswap. This follows a similar model as some other crypto swap interfaces, except that new features are incorporated here.
The Honeyswap is a Decentralized Exchange (DEX) aggregator that leverages multiple blockchains to facilitate different kinds of transactions. Some of the transactions doable here are Oracles, Swaps, and Flash Loans.
Worthy of mention is that the Honeyswap DEX aggregator is also an avenue for the 1Hive team to generate more revenues. Ideally, a portion of the fees generated via the DEX aggregator will be used to buy the Honey token. A portion of the fees will also be used to buy the Comb token, another native token within the 1Hive ecosystem.
Both tokens (Honey and Comb), when purchased, will be used to incentivize or reward the Yield Farmers using the 1Hive economic protocol.
By extension, those buyback mechanisms will go a long way to trigger a bullish run for the Honey and Comb tokens.
Innovation is the singular factor that makes cryptocurrencies viable. The community-powered concept of the 1Hive protocol empowers the holders of the native token (Honey) to be a part of the growth of the ecosystem.
At the same time, the project is working on an innovative approach to making decentralized transactions easier, more flexible, and more cost-effective for cryptocurrency investors.
Visit 1Hive Discord for more information