I found Hex after finding out about Pulsechain and recently bought some. I’m trying to understand staking and am a bit confused about what t-shares are. Can someone please explain them to me? Thanks.
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When you stake HEX, your HEX is burned and converted into shares. T-Shares stands for trillion shares. These shares determine how much daily HEX yield you earn. More shares = more daily yield.
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When you interact with the HEX smart contract to stake, or “mine”, the HEX is burned out of existence. In it’s place, the amount of Shares are calculated by the number of HEX and length of the time-lock. Longer pays a much higher APY.
We use the word T-shares often but essentially it’s just the amount of Shares. Currently it costs around $300 for a T-share. In the not so distant future, we’ll be throwing around the word B-Shares (billion shares).
Some things to research more: what’s the difference between Share Rate and Share Price?
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Oh man! It will take you a bit to fully understand T-Shares, but I can assure you it’s worth it.
T-Shares are how you earn HEX yield.
Hex inflates 3.69% per year and it’s distributed daily. The only way to get a part of that yield is by locking up HEX and get t-shares.
Currently you need a over 30K HEX to get 1 T-share. But if you stake long, you can get a T-share for less due to the “Longer pays better” bonus
Check the example below from hexcalc.net. By staking 20k HEX for 3000 days, the contract calculates your T-Shares as if you had staked over 32k HEX, giving you 1.7 T-Shares.
I’d recommend you play with that calculator and search for HEX layman’s guide. Read it to fully understand how hex works.
Any questions, I’m happy to help.
There is no conversion though, it is just happen to be public accessible to view how many shares one stake “has”. It is just value for calculating future “promises” to a address based on time.
Other then that you are correct.
Important to be accurate since if one miss explain it, some may pay tax on the burn tx because they think they hold t-shares.
Better to say abstract cost. It is acting like collective “virtual lending” or “virtual put option” on time.
May be better if we recalculated to a cost of time or cost of the future. This way we may avoid any confusion with regulators in the future. Since then it is just a community made statistic and not a price of something they may see in the future as something that can be bought or sold. There is ways of buying and selling private keys and we have tokanisations of stakes. Just a thought.