[RichardHeart]

Sure. It's like Bitcoin, where people mint their own coins if the computation they do meets the rules of the network. In this it's a hyrbrid proof of work for transactions, with proof of stake for inflation. Just like CDs in the normal world, when you lock longer you get higher interest. However unlike the real world, when others aren't locking as much or as long, you get more. And if more people lock more and longer, then you get less (similar to Bitcoin mining, except rewarding stake mass length instead of hashrate.)

[theamk]

So where does all the extra money come from? Are you using new deposits to pay interest to older deposits?

[RichardHeart]

Just inflates, just like bitcoin. Bitcoin inflates to pay miners, HEX inflates to pay stakers. Everyone thinks that Bitcoin is deflationary, but it's actually quite inflationary, which is the only way to go from 0 coins 10 years ago to 18 million coins today. BTC had two pumpamentals. 1. Freemium onboarding by double clicking an exe in the beginning. 2. Cut inflation rate in half every 4 years. Now, even after it's been cut in half twice, it's still about 4%