Huobi Pool is a centralized mining pool operated by the Huobi exchange. It supports both Proof of Work (PoW) and Proof of Stake (PoS) mechanisms. Individual miners can either purchase hashrate directly or contribute their own computational power to the pool to enhance mining efficiency. Additionally, the platform offers staking and voting mining options. At the core of these services is HPT, or Huobi Pool Token, which integrates all operations within the ecosystem.
Users can acquire hashrate for cryptocurrencies like BTC, BCH, ETH, and LTC through Huobi Pool. They can also deposit PoS-based assets such as EOS, QTUM, TRX, and ONT for staking and voting. Rewards from these activities are distributed in HPT. The platform employs a unique "mining-as-mining" model, where 51% of the staking rewards are allocated to HPT holders based on their holdings. HPT itself can also be used in voting mining.
Investment Returns with Huobi Pool
Many investors are interested in the actual returns they can expect. For small-scale holders or those holding assets acquired at higher prices, staking through Huobi Pool can be a strategic move. The annual yield, measured in tokens, is approximately 10%, not accounting for price fluctuations against stablecoins like USDT.
If the token’s value increases relative to USDT, the overall return can be significantly higher. For example, if you purchase 1 EOS at 5 USDT and stake it for a year, you would accumulate 1.1 EOS. If the price then rises to 10 USDT per EOS, your total value becomes 11 USDT—a 120% gain.
Introduction to HPT Token
HPT is an ERC-20 token with a total supply of 10 billion. As of early 2020, the circulating supply was around 5.464 billion. The token plays a central role in Huobi Pool’s reward distribution mechanism.
Holding HPT entitles users to receive a share of staking rewards from supported networks like EOS, TRX, ATOM, and others. Longer staking periods often come with bonus rewards, typically around 200%, and sometimes as high as 500% for certain tokens.
Additionally, Huobi Pool allocates 30% of its business profits to monthly buy-back and burn events, creating a deflationary pressure on HPT.
Benefits of Holding HPT
HPT offers two primary value propositions: daily mining rewards and potential price appreciation.
By staking assets like ONT, EOS, or ARPA, users earn HPT. Holding HPT, in turn, generates rewards in multiple other cryptocurrencies. If you believe in the long-term growth of these assets, this can be an attractive investment strategy.
Moreover, HPT is a sub-token of HT (Huobi Token), backed by one of the world’s top three cryptocurrency exchanges. This affiliation offers a degree of trust and security that is rare in the crypto space. Since its launch, Huobi Pool has quickly grown to rank among the top ten mining pools globally, indicating strong growth potential for HPT.
For those looking to diversify their crypto holdings and earn passive income, Huobi Pool offers a compelling option. 👉 Explore staking opportunities
Frequently Asked Questions
What is HPT?
HPT is the native utility token of Huobi Pool. It is used to distribute staking rewards and enables holders to participate in voting and mining activities within the ecosystem.
How are rewards calculated?
Rewards are distributed daily based on the amount of HPT held and the tokens staked. Longer staking commitments often result in higher yields.
Is Huobi Pool safe to use?
As part of the Huobi Group, the pool benefits from robust security measures and a reputable backing. However, as with any crypto platform, users should perform their own risk assessment.
Can US-based users access Huobi Pool?
Due to regulatory restrictions, Huobi services are not available to U.S. residents. Always check local regulations before participating.
What is the token burn mechanism?
Huobi Pool uses 30% of its monthly profits to buy back and burn HPT tokens, reducing supply over time.
Which cryptocurrencies are supported for staking?
Major supported coins include EOS, TRX, ATOM, ONT, and several others. The list is periodically updated based on network support and demand.