1. Project Introduction
HOPR is a blockchain-based protocol aiming to solve data and privacy issues on a global scale. With an official initial coin offering (ICO) in 2021, HOPR sets out to completely decentralize private data exchanges. According to the protocol’s official website, HOPR is a next-generation privacy solution, allowing both private and enterprise users to decide who has access to their online and personal data.
As a decentralized autonomous organization (DAO), HOPR is not controlled by a centralized entity but rather governed by the HOPR community and supporters. The protocol is a pioneer in introducing community-enabled governance (DecenGov), which puts the control in users’ hands. HOPR aims to bring universal data privacy through the use of blockchain technology and distributed ledgers.
The HOPR token has three main functions: pay, stake and vote.
The primary utility of the HOPR token is to pay for sending data privately through the HOPR network. Let’s say Alejandro’s company sends data privately to a user Zoe in three hops, relayed via Betty, Chāo, and Dmytro. Alejandro’s node will pay HOPR for each packet sent, with each relayer claiming a share of Alejandro’s payment.
Relayers are only paid once they’ve received payment key halves from the previous and following nodes along the route. This is the fundamental mechanism behind HOPR’s proof-of-relay system, which incentivizes everyone and ensures honest behaviour.
Node runners earn tokens via HOPR’s staking mechanism.
The more HOPR tokens you lock up in your node as your stake, the more data you can relay and the more HOPR you can earn. These earnings will come partly through relaying user data (through the pay function, explained above), but also from relaying cover traffic, which accounts for 25% of the total supply (250 million HOPR, distributed over the first two years of the network).
Cover traffic is a crucial part of a decentralized mixnet, providing anonymity and unlinkability even at times when organic network usage is lower. By combining cover traffic with staking, HOPR takes two often arbitrary functions of decentralized networks and builds an incentive system where users are rewarded for holding HOPR tokens while also doing useful data relaying work for the network.
As a result HOPR staking is less passive than other staking programs. It’s not enough to just hold HOPR tokens: you have to run a node and contribute to the network to earn. This is better for overall network health and helps mitigate the problem of disinterested “whales”.
Anyone who holds HOPR tokens will be able to vote on proposals that affect the HOPR network, including HOPR fees and other technical parameters. But that’s not all: anyone who holds HOPR tokens will also be able to apply for membership of the HOPR Association, a Swiss not-for-profit legal entity that allows HOPR to interact with the real world without exposing token holders to legal liability. It’s this crucial factor that separates HOPR from previous attempts at building a DAO.
Association members can vote using their tokens on association-specific things such as how the association spends its money and who gets to be on the board of directors. HOPR is taking a cautious but active approach to tokenized decentralized governance: it’s clear from previous experiments in this space that it’s inadequate, unhelpful, and perhaps even unfair to just abruptly transition to community control.
Different parts of a decentralized community have very different levels of token holding and engagement, and many parts of a project engaged in active development are not compatible with the very basic “proposal / mass community vote” model we see across the crypto space.
HOPR is taking decentralized governance to the next level, but the HOPR token will underpin every part of it.
3. Token Allocation
Total Supply: 1,000,000,000 HOPR
Current Circulation(as of 1 April 2021): 130,000,000 HOPR
Public Distribution: 8.5%
Cover Traffic: 25%
Team & Advisors: 18.5%
4. Related Links
Note: The above information is published by the project team which may contain errors, omissions or out of date. The content is strictly for reference only and does not constitute any investment advice. HBTC shall not be responsible for any direct or indirect monetary/financial losses due to the reliance on this information.