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Hiveterminal: Increasing Hiveterminal Token (HVN) Usage

Gal Jakic
Gal Jakic Mar 1, 2022

With activities on the DACH market gearing up, we are happy to see an influx of people interested in Hiveterminal. In turn, we think it is essential at this point to run through some foundational topics, particularly the role Hiveterminal Token (HVN) plays within the Hiveterminal platform.

How Is HVN Used within the Hiveterminal Platform?

The Hiveterminal token is the fuel of the invoice financing ecosystem we have been building over the last five years and the only payment method used to pay for fees within the Hiveterminal platform. It is a true ERC-20 utility token, which grants its holders the right to claim ownership of invoices on the Hiveterminal platform and obtain credit scores for companies with a sufficient financial track record on the Hiveterminal platform.

Let’s explain this via a simple example:

  • A verified invoice seller company uses the Hiveterminal platform to upload an invoice they previously issued to their client (a.k.a. debtor company) for services rendered in the past. They must upload an invoice at least ten days before its payment due date.
  • Hiveterminal then performs an invoice risk calculation, taking into account existing financial data from verified sources of financial data, such as Dunn & Bradstreet and Creditreform.
  • Once the debtor confirms the invoice and its underlying services are valid and undisputed, the platform lists the invoice on the marketplace.
  • Invoice buyers can then purchase the invoice, providing liquidity for the invoice seller and claiming ownership of the underlying payment for a discounted amount.
  • At the invoice due date, the invoice debtor will transfer the full invoice amount to the invoice buyer, creating a win-win situation for all parties involved.

While Hiveterminal has so far been entirely free of charge to use for invoice sellers, the invoice buyers have had to pay a small fee (1% of the invoice price) for the services Hiveterminal provides within the process.

We store proceeds from the invoice buyer HVN fee in what we call the fees wallet. These HVN tokens do not go up for sale again, incentivizing both Hiveterminal as a company and our token holders. So far, we have collected 1.434.288 tokens from invoice purchases and expect this number to increase rapidly as our first pilot group of DACH customers starts using the platform to gain liquidity for their business.

Stay tuned.

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