A CRYPTOGRFX GUIDE

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Maximizing the use case of the Hex, Hedron & Icosa to increase T-Shares over time

Introductory Thoughts

Typically, most strategies spoken about in Hex are regarding ladders or some form of
staking strategy that best fit a person’s timeline. Most conversations stop short of maximizing
the Hex system, because staking for 5555 days or 15.25 years is a long, long time away. The
average thought process is mostly around timing profits from the Hex system and
compromising on utilizing the system to its maximum potential. What has not been considered
as much, is how to utilize what has been built on Hex to essentially beat what the Hex system
normally is designed to prevent: Gaining T-shares without putting in more economic energy.
 Both Hedron and Icosa are essentially layer 2 scaling to the Hex smart contract, that
have their own possibilities independent of one another to make passive income at a minimum.
Most of the time, these two layers are talked about as independent of Hex, a way to get more
Hex, a new investment vehicle to make the fastest gains, or even something that leeches from
the Hex system – in only a few cases though. Each system has been dissected to understand
how it functions alone, but seldom have I heard about how these systems can be used to
increase value relative to the Hex system and specifically: The T-Share.

When it comes to Hex, Hedron and Icosa, each system has potential optimal strategies
to maintain value in the system or grow value in the system. Each of the three have different
number of possibilities to maximize its use case within its system and the others. After
countless hours of building models, analyzing data and deep thought, I have consolidated my
most advanced thoughts on how the Hedron, Icosa systems function on top of Hex and
including the use case of Hex into this write-up. Since both Hedron and Icosa are built on Hex,
the strategies that maximize the use case of the system will be relative to Hex in both terms
and values. These thoughts are not in terms of dollars, but instead in terms of T-Shares, since all
three systems are driven by the T-Share within their respective system.

The reason everything is based on the T-Share, is because it is the moving piece within
the Hex ecosystem that is always getting more difficult to obtain and therefore carries the most
value within the Hex system. Because of this, we need to look at what is built on top of Hex to
understand how to increase our number of T-Shares within the Hex system and grow the most
valuable part of a system where it was not designed to grow.

The End Goal

The end goal of these strategies is to maximize the growth in the value of T-Shares you
and I have over time. Nothing more and nothing less. It goes against the grain of what the
classic ethos of Hex is; however, I believe everything that allows you to grow your T-Shares in
this methodology is good for the Hex system. I call this form of methodology and logic: T-Share
Maximalism.

Let’s begin.

Hex

The only way to maximize the use case of Hex within its system is to stake as long and as
large as possible, to try and maintain T- Shares over time. Otherwise, capital must be deployed
to make up for lost T-Shares due to staking shorter over time. Staking as much Hex as possible
for 5555 days will maintain the largest position possible in the system regarding T-Shares. The
downside of only participating within this system is that even staking max length only, you may
not completely retain the T-Shares you started with over time if you ever take profits.

Hedron

What is the Hedron price ceiling?

To maximize the value of Hedron within the system, we need to understand what the
ceiling price is between Hedron and Hex. the celling price is the point where the ratio in Hex of
a 5555-day stake with one T-Share is equal in value to the Hedron that the stake outputs
through the ‘mint’ function on either app.icosa.pro or hedron.pro. However, for the sake of this
write up, we will use ratio first as we are trying to avoid thinking in terms of Dollars. For
example: If it costs 8092 Hex to create a one T-share 5555 stake, then we simply divide the
number of Hedron a single 5555 T-share will always output, 5,555,000, by 8092. What we get is
a ratio of 686.5:1 Hedron tokens to Hex tokens as what the optimal ratio should be.

If we are thinking in terms of price, we can do one of two things to achieve the correct
answer. The first path we can take is to simply use the ratio above. All we must do is simply
divide the price of Hex by the number of Hedron tokens in the ratio (in this case 686.5) and we
will find out what the ceiling price in dollar terms should be: $0.0000485. The alternative
method to finding the price where we don’t already know the ratio of HDRN:HEX, is to calculate
the current cost of a 5555-day single T-Share stake and divide that by 5,555,000 – since we
know one T-Share will always output that amount of Hedron tokens. Because a 5555 day stake
always gets 200% bonus shares, it takes 1/3rd of the T-Share rate to acquire a T-Share when
staking max length. Now that we understand this, divide whatever the Hex T-Share rate is by 3,
multiply that number by the price of Hex at that time and you will get the cost of a T-share for a
5555-day stake. Lastly, divide that cost by 5,555,000 and you will get the same price we got
using the ratio above.

This ratio or price point is not an actual limitation per se as Hedron could rise above that
point, however if it does, users will be able to get more Hex/ Hedron token than they could by
simply staking their Hex. This means if users could get 5,555,000 Hedron by staking 8092 Hex
for 5555 days, that same number of Hedron tokens would be able to trade for more than 8092
Hex tokens. This event will cause Hedron’s price or ratio to lower and Hex’s price or ratio to lift
until the proper ratio has been reached again or the price falls below the ceiling.

Now that we understand what a ceiling price for Hedron is and how it serves the system,
let’s dive into how to maximize the use case of the Hedron system.

Maximization of the Hedron system

 Hedron is a wildcard, as it is currently undervalued and may or may not ever reach its ceiling
price in relation to the price of Hex and the T-Share rate for a 5555-day stake. The reason it may
never reach the ceiling price, is that Hedron was given free in surplus to early adopters in hex
who may never fully value Hedron. Nothing was ever exchanged or given up receiving Hedron
tokens for early Hex stakers. Until those users have either reduced their holdings to an
insignificant amount or have completely left the system, there will always be likely an
imbalance in sell pressure. The upcoming HSI auctions are possibly going to shift Hedron’s
sentiment for the first time for multiple reasons:

- Hedron could see a supply shock and have its supply massively reduced, increasing
future buy pressure as there are less tokens to sell
- The demand for Hedron may increase due to users wanting to get in on the Auctions
who currently do not have much or any Hedron, slightly before they begin
- Seeing the yield that comes during the mass auction event starting November 13th,
users may purchase Hedron tokens to get a share of the staking pool and FOMO in,
further reducing available supply

Hedron could reach its ceiling price despite this however, if the market decides to keep
moving the price up based on speculation, the reasons outlined above or various other reasons
not outlined here. Once Hedron hits its ceiling price, every 5,555,000 HDRN tokens are equal in
value to one 5555 T-Share (in Hex tokens) no matter what the T-Share rate is or the price of
Hex. The dilemma is guessing which pathway to utilizing Hedron is maximizing its use case.

On one hand, if you stake your Hedron you earn Icosa – Which is always going up in value in
relation to a T-Share. The problem here is that if you stake, you are unable to take advantage of
Hedron hitting its ceiling price to get the 5555-day T-Shares that each 5,555,000 Hedron is
worth at that point. You are also unable to participate in Auctions to achieve this same effect
should you be able to win an HSI for close to the minimum Bid.
 In these HSI auctions, if you are spending more than the minimum bid, you are giving up
potential T-shares now. Yes, you may be getting a good deal now, however you must ask
yourself first if you believe that Hedron will ever hit its ceiling price. If the answer is “Yes”, then
why would you overpay now for something you could get later for much less. For every
5,555,000 Hedron tokens over the minimum bid price you burn, you are giving up a future T-
share in the future and possibly the ability to grow that T-Share - as we will talk about shortly.

Strategizing

The most efficient Strategy I see, is to stake some or all your Hedron within the first 365
days since Icosa launch – preferably as soon as possible. After the first 365, there is no
guarantee of yield of any size for the staking pools, however during this first year the Icosa
supply is Hyper Inflationary due to the SA burning Hedron through the “Proof of Benevolence”
function as well as a mass auction period of HSI’s that may create future auction cycles and
consequently yield cycles within the staking pools. This means you will most likely be earning
the most Icosa you will ever earn per Hedron staked in the pool. This strategy could be a 90/10
split, or any other percentage split you deem adequate.

As most people who hold Hedron own less than 10 billion Hedron, most stakes will at most
be minimum 90 days, which means users could make a stake and let it sit to earn Icosa while
waiting for an opportunity to take advantage of Hedron hitting its price ceiling after the 90 days
is up, as they can end a stake any time after the minimum has been served. The dilemma again
is this: Will Hedron likely hit its Ceiling price within 90 days or is it more likely to stay below
during that period. Since no one can answer that question correctly, your percentage of staked
and un-staked Hedron needs to be divided according to how likely you deem it is that Hedron
hits its ceiling price.

You also need to weigh the T-Shares you could get if Hedron was at its ceiling vs the T-
shares you may get from the auctions, as each Icosa will be always increasing in its percentage
of a T-Share that it is worth. If the ceiling price is reached within the auction days and your
minimum days have already been served, it may still be optimal to end stake Hedron to
exchange for Hex, stake for 5555 as an HSI, mint Icosa and finally stake it before the next day
tick’s over. This would mean you converted your Hedron to the appropriate amount of T-Shares
it was redeemable for and maximized its use case, then converted those T-shares to Icosa,
where the tokens will be increasing in value relative to a T-Share as well as earning more
Hedron (Future redeemable T-shares) and Icosa (Tokens increasing in value relative to the T-
Share) as well. This is maximizing the potential of both systems in my opinion.

There is no guarantee that Hedron will ever reach its ceiling price to take advantage of this
strategy, however staking Hedron as soon as possible allows for the opportunity to take
advantage of a ceiling at the closest possible moment while waiting and earning yield.

As a fail-safe plan, having a percentage from the ceiling price (like 20% lower for
example) that you will be willing to exchange some of your Hedron for T-shares could instead of
waiting for the exact moment could also be a way to come close to maximizing this strategy.
Let’s say the price ceiling is 686.5:1 Hedron tokens to Hex; If your target exchange point was
within approximately 15% of that, you would be looking for a ratio of 810:1 (or better) Hedron
to Hex before swapping.

Once you have decided to swap your Hedron for Hex T-shares, it’s time to start thinking
about Icosa and growing those T-shares daily.

Icosa

Icosa is a different breed than Hedron. It has a given value and will likely hold its value
over time because Hex was exchanged for it directly via the Icosa Smart contract’s HSI Buyback
function. Its value goes up based on the price of Hex, The T-share rate, and an ever-decreasing
Icosa output for a single T-Share. Over time, a single Icosa token will be increasing in the
amount of 5555-day T-shares that it is worth. This is very different from Hedron, as one 5555 T-
share will only ever output 5,555,000 Hedron no matter what the price of Hex or the cost of a
T-Share. To summarize, one T-Share will always output the same amount of Hedron no matter
if it is 1,000,000 Hex per T-share or more; on the other hand, one T-share will always be
redeemable for less and less Icosa every day, no matter the price of acquiring one.

Icosa’s Ceiling Price

Let’s quickly touch on how to determine the Icosa Ceiling price. To find out how much
Icosa a single 5555 T-Share stake can mint in Icosa, we must divide the amount of Hedron Mint-
able from that stake (5,555,000) by the T-share rate at the time and finally add the 10% bonus
that is given for max length stakes. If the T-share rate was 24,278 at the time, this equation
would output 251.7 Icosa tokens. Since we know the amount of Hex required to obtain a max
length T-Share is 1/3 of the T-Share price, we simply divide that number of Hex by the number
of Icosa and we get a ceiling ratio of 32.15 Hex: 1 Icosa. If we wanted to find out the ceiling
price of Icosa in dollar terms, we would simply Multiply the number of Hex in the ratio by the
Hex price; and in this instance we get $1.06.

If the ceiling price was exceeded, users could mint Icosa and sell it for more Hex than
they originally staked, re-stake it 5555 and then mint more Icosa than they previously had as
many times as they could before the ceiling was restored. If the price of Icosa dips below the
ceiling price, users would be able to buy more Icosa by swapping Hex for Icosa than staking Hex
to mint Icosa. There is no guarantee that users will take advantage of this low side of the ceiling
every single time it happens, however the few instances we have seen already have shown that
users are taking advantage of the break from the ceiling and restoring the ratio/price to where
it should be.

If both Icosa and Hedron remained at their ceiling prices and a user purchased $1000 of
both on the same day, Hedron would always have the same value in T-shares over any length of
time. Icosa on the other hand, will be going up in value in T-Shares every single day for life. This
means that Icosa increases in value relative to Hex much faster than Hedron – assuming both
Hedron and Icosa would hold their ceiling over time.

Every time the T-Share rate goes up by the average we can see on Hexdailystats.com,
which is around 6 Hex per day, a single Icosa token goes up in value by around 0.026% relative
to a T-share (if Icosa holds its peg). The way this happens is due to the T-share rate going up on
average by at least 6 Hex per day. So, if we remember that less Icosa can be minted per T-share
every time the T-share rate goes up we can divide the current amount of Icosa minted, by the
amount of Icosa we could mint if the T-share went up by 6. This leaves us with approximately a
0.026% increase every time the T-share increases by 6 Hex. So, if the T-share rate increases
more dramatically as time goes on, Icosa’s value relative to a T-Share should increase even
more dramatically; assuming Icosa maintains its peg at the ceiling.

Icosa Staking strategies

When it comes to staking Icosa, you are earning both Hedron and Icosa tokens. What I’d
like you to do is ignore anything to do with price for this segment, as we are only speaking in
value relative to the Hex system and specifically the T-share. Your Icosa Principal token amount
is increasing in redemption value relative to the number of T-shares it was originally purchased
for. Secondarily, you are earning ever increasing percentages of future T-shares in the form of
Icosa Yield per token earned per day. Finally, you are earning future redeemable T-Shares in the
form of Hedron for every 5,555,000 Hedron tokens you earn should the price of Hedron be at
or hit its ceiling. If you choose to re-stake the Hedron you earned in the meantime, as you wait
for the ceiling price to be hit, you are earning even more Icosa.

Using this logic, moving Hex to Icosa as soon as possible is the most optimal way to lock
in T-shares at the lowest rate you could possibly get it and grow your number of T-shares over
time even without Staking (assuming the ceiling price is always intact). By staking your Icosa,
you earn more fractions of a T-Share that increase in their value relative to a T-share over time
in the form of Icosa, as well as Hedron tokens (once the Icosa minimum stake length has been
served) that you could use to further generate more Icosa once staked and possibly redeem
that Hedron for the appropriate amount of T-Shares to then place back into Icosa. This would
create a perpetual cycle that allows you to grow your value relative to a T-share at an
increasingly rapid rate.

If you have already staked Hex, have some Hedron or have Icosa, you can simply apply
these strategies starting now and make the most of what you have. This strategy is highly risky
to go all in on, as the ceiling prices may not be reached or held in the future. The risk can be
balanced by not committing all your Hex to the Icosa path and instead, only sending a
percentage that you deem adequate to risk losing.

HSI auction strategy

Because minting Icosa or advancing Hedron and leaving it unpaid for 90 days sends HSI’s
to auctions, we can capitalize on another possible point of redeeming Hedron for the exact
number of T-shares it is worth. If we are sticking to this line of logic we are using, then it only
makes sense to burn your Hedron in an auction for as close to the minimum bid as possible, as
burning more than the minimum bid is burning future redeemable T-shares like we spoke about
in the future and therefore losing the ability to maximize our T-share growth within the
systems. If, however you have purchased an HSI in an auction for close to or the minimum bid,
then the next question is: what do we do with it to maximize our T-share growth?

Once Hex is in staked form, it can never be worth more T-shares than it started as. For
this reason alone, it makes no sense to keep a static number of T-shares when you could be
holding Icosa; Since Icosa goes up in value relative to T-shares without even staking. Minting
Icosa as soon as possible is the best possible way to maximize your T-shares within the system.
Once you have minted, follow the staking strategy in the previous segment to maximize your T-
shares even further.

Conclusion

These ideas and strategies are pushing the envelope of possibility within the systems.
These ideas may never fully play out however and may never play out like we foresee. It is wise
to consider the future price movement within the 3 systems to understand how much, if any, of
the percentage of your Hedron, Hex and Icosa you wish to commit to this path. This is also the
path that goes against any ‘ethos’ of delayed gratification to the degree Hex was intended to be
used.

This methodology is designed to beat the mechanics that are designed to keep users
from gaining shares in the Hex system. I wrote this, knowing it would go against the grain,
because I believe there is unbelievable potential here if used correctly. Your willingness to
adapt to what is happening inside the 3 systems is what will benefit you the most while using
this strategy. Good luck, and be safe.

- CRYPTOGRFX

https://www.youtube.com/c/CRYPTOGRFX

https://www.cryptogrfx.com/

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