Hello Hives,
You might know the VAULT Token. You might hear its pegged mechanism to HIVE as well. But I am going to make a summary of VAULT Token & its usage on the Hive & Hive-Engine platforms as well.
The VAULT is hard-pegged to HIVE at 1 HIVE : 10 VAULT ratio. First, we created this token to share @hiveupme curation rewards between delegators. That is the only way of minting VAULT tokens. Therefore, this token could secure the 1 HIVE: 10 VAULT pegged ratio during the last two (2) years.
Sometimes, you might question "why we introduced VAULT" for delegation payments. VAULT is the turning point of our projects. We built financial stability by using this token. We had not enough funds to pay delegation rewards at the beginning of the @hiveupme curation project. So, VAULT let us have a chance to flex our muscles & start the project. Today we are proud to say we own a few tools/projects & token economies.
As we discussed before, the VAULT token issues between @hiveupme delegators as their delegation rewards. There is no other way to mint this HIVE pegged token. But it has few use cases now.
A curation reward sharing token between @hiveupme delegators. (The only way to mint this token)
@hiveupme curation rewards between delegators. That is the only way of minting VAULT tokens. Therefore, this token could secure the 1 HIVE: 10 VAULT pegged ratio during the last two (2) years.