Hex is an Ethereum-based token that bills itself as the first blockchain certificate of deposit (CD). Just like traditional CDs offers an improved interest rate to customers who agree to leave a lump-sum deposit untouched for a set amount of time.

Hex holders can stake batches of HEX tokens for specified amounts of time. During this time, they may not access those tokens without severe penalties but when the specified time period is complete, Hex holders can receive HEX rewards.

Hex was launched in 2019 by founder Richard Heart. It has received criticism for being a scam or a potential Ponzi scheme, despite having a market capitalization of over $30 billion as of Feb. 1, 2022.

Understanding Hex

Hex’s model pays rewards to token holders, rather than to miners or validators operating the network. Users stake their HEX by agreeing to not trade or sell their tokens for pre-set lengths of time. When the time period is complete, HEX holders then receive those funds plus an interest payment or HEX reward. Hex users can currently select between 1 and 5,555 days (over 15 years) for the duration of their stake, with longer stakes corresponding to higher rewards.

The mechanism for staking is structured such that establishing a new stake burns HEX tokens and provides the user with so-called “T-Shares” in return. Longer stakes receive higher numbers of T-Shares, with each share accruing interest in HEX each day.

Hex’s value is designed to increase yearly by a maximum of 3.69%. This inflation, combined with penalty payments that Hex collects, pays HEX rewards to users who have already staked their tokens for the agreed-upon time periods. Penalties are charged to Hex users who trade or sell their HEX prematurely.

How much is Hex worth?

As of Feb. 3, 2022, each HEX token is worth $0.18. The Hex ecosystem has a market capitalization of roughly $32.8 billion.

How do you buy HEX?

To buy HEX, users need to hold Ether (ETH) tokens and use MetaMask, a cryptocurrency wallet that functions like a browser extension. Users can trade ETH for HEX.

Source: https://www.investopedia.com/hex-definition-5217721