The Huddl Token: Utility Maximized
Collective Benefits > Profits
Huddl is the first platform where everyday investors can collaborate, pool their assets and get access to products and services previously available only to the wealthy. The platform is designed such that investors and financial service providers both benefit from it. Everyday investors pay lower fees and receive unprecedented access to investment managers, strategies and products through an easy to use mobile platform. Providers benefit from expanded opportunity and direct access to end investors.
Huddl offers unprecedented access at low fees.
The idea of Huddl came to CEO Stephen Corliss several years ago, inspired by community-driven cooperatives and credit unions that aimed to maximize benefits for all participants rather than focus solely on profits for shareholders. Utility economics, and the grassroots movement started by Bitcoin, shares these characteristics of democratization of access, and equitable sharing of benefits.
Token Model Highlights
Huddl recognizes the value users bring to the platform, and rewards them equitably. A third of the tokens will be distributed to users in the initial release, and a larger share every quarter per the distribution schedule described later.
Share of users: 33.3% initially, increasing quarterly
Share of contributors: 33.3% initially, decreasing quarterly
Share of reserves: 33.3% initially, decreasing quarterly
The decreasing inflation rate used in the Huddl model follows the natural growth curve of a network — rapid growth in early stages, slower growth as the network matures.
Initial supply: 100,000,000
Inflation rate: 10% initially, decreasing quarterly
Time to reach max supply: 18 years
Max supply: 1,000,000,000
Huddl (ERC-20) smart contract: https://etherscan.io/
Huddl Token Maximizes Collective Benefits
The fundamental rule of profitability economics is to charge a customer higher than what it costs to serve them, and pass the difference (profits) on to the shareholders. This naturally creates an incentive to raise prices. Projects driven by utility economics, on the other hand, can sustain economically without focusing solely on profit maximization. Implementing utility economics, via the Huddl token, allows the platform to balance it’s core mission of providing access to investment opportunity at low costs, while remaining economically viable.
The token provides an incentive mechanism such that every member of the community benefits from the growth of the platform. The token can be earned by bringing value to the Huddl Platform through participation and engagement, whether through sharing individual networks, traits and behaviors, data, and so on. Key activities are rewarded with tokens in order to increase the overall value of the Huddl network.
Huddl rewards users for bringing value to the platform.
The Huddl Referral program (ending on March 3rd 2019) illustrates how community members add value by inviting friends to Huddl, and earning token rewards in the process. The Huddl [L]earn program where community members ask the Huddl CIO thoughtful investment questions to earn tokens is another such example.
Spend and Hold Tokens
Huddl token is the preferred payment mechanism of the platform. With the upcoming release of the Huddl mobile app, both users and financial service providers will be able to use the token to access the Huddl platform. Tokens can be spent or held (deposited) to receive discounted products and services on the platform, and unlock numerous premium features.
Huddl is a subscription platform where users paying subscription fees with tokens will receive significant discounts. Further reduction in platform fees is possible, and premium features can be unlocked, by holding (depositing) tokens for longer periods. Holding tokens on-account will entitle users to additional incentives.
Token Supply and Release Schedule
Initially, 100,000,000 tokens will be released into the circulating supply. Thereafter, tokens will be released on a quarterly frequency per the inflation rate schedule described later in this section. The quarterly schedule reaches a total of 1,000,000,000 tokens in 18 years. No further tokens will be released once this max supply is reached.
The first quarterly release will introduce an additional 10% tokens to the initial supply. The inflation rate is reduced by 4% of the previous quarter’s rate from there on. The decreasing inflation rate follows the natural growth curve of a network — rapid growth is experienced while the network is new, and the growth rate slows down as the network expands and is adopted by the majority of the participants the network targets.
The table below illustrates the inflation rate and number of tokens released for the first 4 quarters.
The decreasing inflation rate and its impact on token supply can be seen on the charts below. The max supply of 1,000,000,000 tokens will be reached in 18 years (72 quarters).
The Huddl token model aims to achieve an equitable distribution of network value. The long-term goal is to incentivize all contributions that lead to platform growth by rewarding users, partners and contributors with tokens. These rewards can in turn be utilized on the platform to pay for essential products and services, reducing the overall costs and fees often involved in global finance and investing.
Released tokens are distributed into circulating supply among the following:
- Users: Users of the Huddl platform will receive tokens for their contributions on the social and investment tiers of the Huddl platform. On the social tier, activities like referring friends, exploring investment themes, contributing to conversations, forming and managing investment pods, etc will be rewarded. On the investment tier, users will receive token rewards in proportion to the capital they invest in various investment themes, and for exhibiting healthy saving and investing habits.
- Contributors: Operating and growing a platform requires a variety of contributors who need to be rewarded for their efforts. Such rewards include payments to project teams, sponsors and partners, software developers, marketers, customer service providers, product promoters, financial service providers, community builders, researchers, etc.
- Reserves: The reserves will be used for new initiatives to expand the Huddl platform. This includes future development projects like new services/offerings on the platform, platform expansion in new regions/countries, customer-acquisition, etc. The initial development of the Huddl platform has been funded by founders and select equity investors. As the platform and token gains traction, the reserves may also be used to reward founders, equity investors, and strategic partners.
A third of the tokens will be distributed to users in the initial release, and a larger share in every quarterly release thereafter.
The Huddl token model recognizes the value users bring to the platform, and is committed to sharing the monetary value with the users in a very transparent manner. At launch, the model will distribute the tokens in three equal parts among users, contributors, and reserves, i.e. 33.33% each. As the platform matures and achieves economies of scale, the share to contributors and reserves is reduced by 1% of previous quarter distribution rate, and a larger share of the tokens is directed to users.
The table below illustrates the shares of various constituents for the first 4 quarters.
At the end of 7 years, users’ share will have grown to over half of the incremental token supply, and will rise to more than two-thirds of the incremental supply by the end of 18 years when max supply is reached.
The Huddl token multiplies the power of the Huddl platform by providing a fair and transparent mechanism to monetize its utility. The token model is built on the principles of fairness and transparency. The token aims to incentivize all contributions that lead to platform growth by rewarding users, partners and contributors.
Huddl is an ERC-20 token deployed on the Ethereum blockchain. The smart contract can be found here.
DISCLAIMER: Purchasing Huddl tokens provides access to the Huddl platform through which you can connect with service providers and thereby make investments, however, simply purchasing Huddl tokens themselves is not an investment, passive or otherwise. To understand any risks and disclosures related to the Huddl token, please read our whitepaper.