Coinfeeds Daily → HashKey Teases Launch Date For Its Ethereum L2 in Q4

HashKey Teases Launch Date For Its Ethereum L2 in Q4

Published: Jul 08, 2024 | Last Updated: Jul 08, 2024
Howard Kane

HashKey Chain aims to reduce fees and boost efficiency; introduces HSK tokens with value protection mechanisms.

Hong Kong-based crypto exchange HashKey Group has announced the launch timeframe for its Ethereum layer-2 solution, HashKey Chain. This new network is scheduled to go live in the fourth quarter of this year. Let's break down what this means and how it could impact the crypto ecosystem.

What is HashKey Chain?

HashKey Chain is an Ethereum layer-2 solution. In simple terms, layer-2 solutions are designed to improve the scalability and efficiency of blockchain networks. They do this by handling transactions off the main Ethereum blockchain (layer-1) and then recording the results back onto it. This helps reduce congestion and lowers transaction fees.

The Role of HashKey EcoPoints (HSK)

HashKey Chain will support a new ERC-20 token called HashKey EcoPoints (HSK). These tokens are developed specifically for ecosystem contributors. HSK tokens offer several benefits, including fee discounts on the HashKey platform. According to the HSK whitepaper, there will be a total supply of 1 billion tokens. These tokens will be allocated for various purposes such as marketing, rewarding the HashKey team, and protecting the ecosystem.

Token Burn Mechanism

To protect HSK token holders from dilution, HashKey Group has introduced a token burn mechanism. This means that 20% of the firm's net profits will be used to buy back and burn HSK tokens. Burning tokens reduces the total supply, which can help maintain or increase the token's value over time.

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