What is HEX (PulseChain) (HEX)?

Deep Dive

1. Purpose & Value Proposition

HEX positions itself as a “certificate of deposit” for crypto, rewarding users for locking funds to reduce sell pressure. Stakers mint new HEX tokens proportionally to their stake size and duration, with penalties for early withdrawals. This “Longer Pays Better” model aims to incentivize hodling, though critics argue it resembles a self-sustaining Ponzi reliant on new deposits.

2. Technology & Architecture

HEX runs on PulseChain, a layer-1 blockchain forked from Ethereum in 2023. Key upgrades include:
- Hybrid PoW/PoS: Combines Proof-of-Work’s security with Proof-of-Stake’s energy efficiency.
- PRC20 standard: Ensures wallet compatibility (e.g., Rabby, Trezor) and gas optimizations via bit-packing.
- Decentralized minting: Users generate rewards locally without intermediaries, though Heart’s outsized token share raises centralization concerns.

3. Regulatory & Governance Landscape

Richard Heart dominates HEX’s ecosystem, controlling ~90% of tokens and facing unresolved European tax evasion and assault allegations (Weex). While a February 2025 US court dismissal of SEC fraud charges provided regulatory relief, the project’s dependence on Heart’s reputation remains a systemic risk.

Conclusion

HEX blends yield mechanics with Ethereum-compatible infrastructure but faces credibility challenges due to founder concentration and legal uncertainties. Can it transition to genuine decentralization while maintaining its staking appeal?