Here is an infographic that explains how HIVE tokens work and how they enable the holder to be rewarded for supporting our ecosystem.
Dear blockhive community,
With the second round of our Initial Loan Procurement underway, we’ve created an infographic to explain how our HIVE tokens work and how they enable the holder to be rewarded for supporting our ecosystem.
blockhive’s creditors receive HIVE tokens that they can use to sign digital loan agreements. HIVE utilizes smart contracts to handle KYC and other necessary procedures that make it possible to enter into a legally binding loan agreement without the need for intermediaries.
When a token holder signs an agreement, they will have a loan balance separate from their HIVE balance. Creditors are paid interest based on their loan balance — not their HIVE balance. This makes it important for our token holders to sign their loans agreements quickly to avoid missing payments.
Blockhive creditors will pay ETH (though all transactions will be based on Euros) directly to the contract address and based on the amount of their loan, and creditors will receive 20% of the operating profits generated by the blockhive community. The loan period is ten years, and they can be renewed if both creditors and blockhive agree. blockhive has the right to recall the loan. During the loan period, creditors will be able to transfer some or all of their loan rights to others.
How loan rights are transferred
HIVE tokens grant access to our loan agreements in the same way a key grants access to a house. Without a key, you can’t enter the house, and without signing the loan agreement using your HIVE, you can’t be paid.
Our infographic will help explain.
Step 1 Seller starts with a loan balance worth €4,500 (100,000 HIVE)
The creditor is preparing to transfer HIVE to a buyer. Before the transaction, their loan balance is €4,500 and their HIVE balance is 100,000.
Step 2 The seller transfers 40,000 HIVE to the buyer
