To earn income from cryptocurrencies, one strategy is to leave them in blockchain vaults to provide liquidity for a set period. At the end, you can get the cryptos back with interest. The HODL coin was created for exactly this purpose.
The HODL coin was named after a misspelling of the word "hold", which means "to hold" in English. In the blockchain world, it represents the strategy of holding coins on the network to earn interest. The misspelling originated on a Bitcoin forum, became popular and became slang in the crypto community.
Binance Smart Chain
HODL runs on Binance Smart Chain (BSC), which offers it, as well as BNB, to those who leave them earning interest there. The fee charging system is innovative. Every time the investor buys, sells and transfers HODL, 5% is charged.
Of the 5%, 4% goes to a reward fund and 1% is the reflection of the coin for investors. That's why HODL is called a reflexion token. There is always a percentage charged for each transaction to holders. This is what encourages them to keep the currency in staking mode so that the yield is constant.
It is also possible to reinvest the tokens received in the network itself. This mechanism prevents whales, large investors, from manipulating the currency's price, allowing small investors to enter this market.
Long-term investment
The idea of this form of staking is to hold the cryptos for a long period of time so that the yields are higher. The tactic is similar to that used by those who invest money in fixed income, such as Treasury Direct and CDB. This strategy is different from what happens with other cryptos, whose investments are short-term.
Investors who invest in HODL tokens in DeFi usually have goals for the future, such as saving money to acquire some asset or build wealth in the long term.
Hyperdeflationary pool
The rewards pool is hyperdeflationary: it has a digital wallet that burns, which eliminates 27% of the total amount of tokens. Each time the coins are burned, a percentage is distributed to the holders.
This process exists for a reason: the total supply is 1 quadrillion HODL (number 1 followed by 15 zeros). This means that the value is quite low. The token is traded on decentralized exchanges, but can be stored in digital wallets.
HODL and HODLX
HODLX complements the main token, but without charging additional fees. It is aimed at day traders, but can also be used for staking and extra earnings.
HODL Hands NFT
This NFT is developed on BSC and can be purchased for 0.3 BNB. There are 10 thousand in total. You can stake it and receive tokens. In the future, it will be used for exclusive access to games in a play-to-earn model.
Play-to-earn model
HODL can also be used and earn interest in games in the play-to-earn model. This means that while you play, you can earn cryptocurrencies, depending on your performance. There are five games available on the platform: Solitaire, Crypto Slash, Gem Miner, Moonshot and Coin Catcher.
Others are in development to run using HODL. Two of them are Texas HODL’em and Gem Fighter, which is already running in beta version. The name of the first game plays on the original version of Texas Hold’em poker, one of the best known.
This branch is expanding in blockchains because it allows entertainment in a decentralized environment and trading values in digital assets, which can be used to acquire special items, energy supplies and new characters resold to other players.
Learn more about cryptocurrencies
HODL has an innovative purpose as it is a currency intended for staking with interest income. To stay up to date with the latest blockchain news and investment tips, continue browsing the NovaDAX website.
