HiP Token and Tokenomics
Tobias Straessle – CO-FOUNDER of HiP discusses The HiP Token
Today we will be introducing the HiP utility token, an ERC-20 token running on the Ethereum blockchain.
HiP is creating an ecosystem that incorporates financial and non-financial real-estate services. Collectively these services are the foundation of the HIP ecosystem.
The HiP Utility Token
The HiP utility token fuels this ecosystem, and serves the following purposes: It is the exclusive means of payment accepted for financial transactions on the platform, these transactions occur when a property is listed or on-boarded, or when selling and buying debt and equity assets. Commissions charged by real-estate service providers such as architects, designers etc. are also paid in HiP tokens.
In addition, for those that are not yet token holders – HiP intends to offer a fiat to HiP token conversion service.
The HIP token is also a reward mechanism…. active participants of the ecosystem will be rewarded with HIP tokens for their contribution by referring new clients or users – such as buyers, owners or investors of real-estate. People will also receive rewards if they create and introduce new financial products for funding or investing, or introduce new real-estate related services of a non-financial nature.
Investing in Property
HiP Tokens can also be used as a currency to invest in properties or portfolios of properties offered on the HiP Platform. These payments are converted into local fiat currency at the time of investment – similarly, disinvestment can be paid out in HIP Tokens if so desired.
Accepting cryptocurrency opens the investment market to a much larger community and helps bypass the slow and cumbersome process of investing in real estate via the traditional payment systems which typically involve banks.
No matter what currency is used, all financial property transactions will still be subject to the relevant regulatory and compliance requirements, such as KYC and AML
Building a Community
The HiP token also serves to create and build an active community, providing tokenholders additional rights, privileges and incentives.
Building a network community requires an active participation by its members. HiP Token holders will benefit in various ways by actively using and participating in the HiP Ecosystem. It gives them the opportunity to help shape the HiP ecosystem as it evolves.
Privileges for Token Holders
Privileges for tokenholders include: Discounts on listing and transaction fees, free access to HiP’s valuable trading data in real-time (if they hold a certain balance of HiP tokens).
The option to stake tokens with network operators (initially this will be HiP only), for which they will receive a share of the Operator’s transaction fees.
HiP tokenholders will also get the right to vote on new products and services proposed for the HiP platform. This could be new funding or investment products and strategies, or new ancillary services.
HiP also intends to encourage participants to propose community-oriented real estate projects for funding. Such projects can be proposed and put up for vote. If accepted, they will be offered to the community and other investors via the HiP platform. Examples of such projects could be housing for the homeless, social regenerations projects or community centres.