6. HP Coin ($HP)

6.1 Summary

The HP coin is the core asset powering the Hippo Protocol ecosystem, designed to facilitate decentralized healthcare data storage, AI-driven services, and governance participation. Data users, AI providers, and healthcare institutions will use HP coin to access network services and data.

Following the transition from HPO ($HPO) to HP ($HP), Hippo Protocol introduces a new Layer 1 blockchain infrastructure, extending its use cases beyond data-sharing incentives to a mainnet coin powering AI-powered applications and real-world healthcare services.

Upon the launch of Hippo Protocol mainnet, HP coin will be allocated annually based on a deflationary half-life schedule, ensuring long-term sustainability and equitable rewards for network participants.

6.2 Coin Distribution & Inflation Model

To fuel the Hippo Protocol ecosystem, newly minted HP coin will be allocated as follows:

• 80% of annual inflation allocated to network rewards

  • 90% of rewards to nodes – Ensuring adequate compensation for storage and computing nodes contributing to healthcare data integrity and security.

  • 10% of rewards to validators – Incentivizing network participants who validate transactions and secure the blockchain.

• 10% for ecosystem growth & liquidity incentives – Supporting new partnerships, liquidity providers, and protocol adoption initiatives.

• 5% for development grants – Funding developer teams contributing to Hippo Protocol’s technology stack, with grants proposed and voted on by the community.

• 5% for airdrops and marketing – Community expansion initiatives, with allocations determined by community governance.

Community Tax Fund Allocation

• In addition to validator rewards, all remaining newly minted coins are allocated to the Community Tax Fund.

• The Community Tax Fund is fully governed by the Hippo Protocol community through on-chain voting to ensure transparent and fair allocation of resources.

• Future proposals for fund usage will be submitted, reviewed, and voted on by HP coin holders, ensuring full decentralization and transparency.

This governance-driven allocation model ensures that Hippo Protocol remains self-sustaining, community-led, and adaptable to evolving ecosystem needs while reinforcing long-term network resilience.

6.3 HP Coin Inflation Schedule

Year	Inflation Rate	New Supply Minted	Total Supply
Year 1	25%	271,183,568	1,355,917,841
Year 2	20%	271,183,568	1,627,101,410
Year 3	8.33%	135,591,784	1,762,693,194
Year 4	7.69%	135,591,784	1,898,284,978
Year 5	3.57%	67,795,892	1,966,080,870
Year 6	3.45%	67,795,892	2,033,876,762

• Accelerated Inflation in the First 4 Years: Encourages early adoption, node participation, and ecosystem growth.

• Deflationary Model Long-Term: As ecosystem adoption increases, utility-driven demand will counteract inflation, leading to a deflationary effect driven by increased token utility and network fee consumption.

6.4 Key Coin Utilities

• Transaction Fees & Gas-Free Abstraction – Enables low-cost, seamless transactions within the Hippo Protocol ecosystem.

• Staking & Validator Rewards – Stakers and validators earn HP for securing the network and validating transactions.

• Hippo Data Nodes Rewards – Node operators earn HP by providing computing and storage resources to the network.

• AI Agents – Users can pay HP Coins for:

  • Health Summary AI – Summarizes health data and medical records. Analyzes health records to generate personalized insights and respond to user-specific health queries.

  • Consultation AI – Supports medical consultations, session documentation, and SOAP note generation.

  • Data Upload AI – Converts PDFs, images, and medical reports into structured, machine-readable data.

• Healthcare & Ecosystem Services – HP coins enable telemedicine, consultations, secondary opinions, clinical trial matching, and personalized recommendations.

• Governance & Voting Rights – HP coin holders participate in protocol upgrades, policy decisions, and funding allocations through DAO governance.

Hippo Protocol fosters a sustainable, community-driven healthcare ecosystem by ensuring a fair balance between utility and reward in the $HP coin tokenomics. Hippo Protocol envisions a self-sustaining and community-driven decentralized healthcare ecosystem.

6.5 HP Coin Swap

Upon mainnet launch, HP coins will be natively integrated into Hippo Protocol's Layer 1 blockchain. Coin holders will be able to verify and manage HP coins across:

• Hippo Wallets & Multi-chain Wallets

• Ecosystem Partner Applications & AI Services

• Exchange Listings & DEX Integrations

A detailed guide for adding HP coins to wallets and supported exchanges will be provided upon mainnet launch.

• HP coins can be purchased and used throughout the Hippo Protocol ecosystem. They can also be earned by participating in activities that support protocol growth, such as using Data Hippo for healthcare data management or staking personal healthcare data to the shared data pool.

• HP is a rebranded version of HPO token (contract).The swap and mainnet migration are scheduled for Q2 2025 following the official launch. More information can be found in the section titled ‘HPO→HP Coin Swap and Mainnet Migration.
• As of the end of March 2025, the total circulating supply is 1,034,734,274.38 HP coins. Of these, 50,000,000 coins are currently locked and will be distributed according to the distribution plan (See detail).
• Hippo Protocol will comply with digital asset regulations currently being finalized in major jurisdictions. The utility of the coin may evolve based on decisions made by the community and DAO to serve the best interests of the ecosystem.