Multifold Reward Model
Unique Identity Protection Token
The Hydra Token and our Blockchain provide a decentralized source of trust for the IOP Stack, rewarding users who maintain the network while keeping cost and fees low.
The Hydra Token is used for services within the IOP ecosystem, including:
- Reward users for sharing their personal data if they choose to do so
- Reward Users for validating claims and providing other services to their peers.
- Financial incentives serve as a protection mechanism for the identifier registry.
Other possible services include:
- Data backup
- Notary services
- Voluntary targeted advertising
- App services
- Creating private communication channels
Instead of relying on a trusted committee of gatekeepers (for instance designated certificate authorities), the Hydra blockchain relies on a decentralized consensus mechanism to protect and maintain your identity.
Instead of trusting a corporation, users only need to trust the code. The Hydra Token incentivizes everyone to act honestly when maintaining the chain.
Hydra currently uses a consensus mechanism called delegated Proof-of-Stake (DPoS). Hydra users use their stake to elect 53 delegates from their midst to forge new blocks and create new tokens. These delegates share a large percentage of the block rewards with their voters. Delegates also earn voter share by contributing to the project or by helping new users. To forge new blocks, delegates need to be online and run a reliable node, but the voters can keep their stake offline and secure.