🛠️Token Utilities

A multi-use token

$HUGS tokens are used for a wide range of utilities, each contributing to a unique mechanism that makes Curator secure and robust.

Early $HUGS utilities

1. Infrastructure fees

2. Elastic user rewards

3. Soulbound NFT creation

Mid-term $HUGS utilities

1. Low reputation unlocking

2. Secondary user rewards

Long-term $HUGS utilities

1. Contribution collateral

2. Review collateral

3. Curated contributions

$HUGS as Contribution/Review Collateral

Every Contributor/Reviewer can stake $HUGS as Contributions/Review Collateral.

This mechanism gives a direct economic incentive to the Contributor/Reviewer to provide high-quality data. When providing low-quality data, the staked $HUGS tokens will be slashed.

$HUGS for Curators

Curators choosing to stake tokens signal to the network that a contribution has a great potential of generating secondary rewards. The curator receives a share of such rewards if the contribution is successful.