Stream With HOT Team: Mining Updates, Listing, and Ecosystem Development
On May 15, 2024, Incrypted hosted a live stream with the founders of the NEAR Wallet project and the associated HOT token. The developers provided insights into the creation of a Telegram wallet and shared their perspectives on token mining and listing. Additionally, they discussed future ecosystem developments, including the launch of the HOT Protocol, integration of new networks, and expansion of the wallet’s functionality.
Before HOT: Getting Started in the Near and HERE Wallet Ecosystem
The project team started working with Near in 2022, introducing the non-custodial HERE Wallet. The developers said the idea for an alternative product came from internal disagreements within the NEAR Wallet team, which stopped supporting the project in January 2024.
In 2022, HERE secured funding, but most funds were held on FTX. When FTX collapsed, the project encountered significant challenges. Grants from NEAR enabled the project’s further development.
The team realized a superapp might be better than a traditional wallet, providing users with a single interface for all digital asset services. Another factor was the wallet’s low profitability, which influenced their shift in perspective.
NEAR Wallet and HOT
A new chapter in the team’s history began with the launch of the gamified Telegram NEAR Wallet, which includes the function of ‘mining’ HOT tokens, in January 2024. This wallet served as an entry point for the HOT ecosystem, initially comprising only a gaming application-tapper.
The team noted that they launched HOT on Telegram because Notcoin was successful. However, comparing HOT and Notcoin is inappropriate as they use different mechanics and user interaction architectures.
HOT developers credit thoughtful gamification and an excellent user experience for the platform’s success. For instance, all transactions within the HOT ecosystem are ‘gas-free’ and subsidized by the team, eliminating the need for users to monitor their NEAR balance.
This development led NEAR Wallet to quickly surpass Sweatcoin, once considered the top app in the Near ecosystem by user numbers. The team shared the following figures:
- a total of 6.5 million addresses have been created in NEAR Wallet to date;
- 850,000 wallets hold more than one dollar in their balance;
- 500,000 users open the app every day;
- more than 20,000 villages have been launched, and more than 70% of the audience is attracted through the referral program.
Due to the many users, NEAR Wallet requires hundreds of thousands of dollars each week to cover gas costs. Near finances most of this sum because the project significantly boosts online activity. However, this aspect may undergo changes in the future.
As HOT became more popular, it transformed into a complete ecosystem. In particular, services such as HOT Pad and HOT Mint were incorporated into the app, through which several partnership initiatives, including DoubleDog’s NFT collection, were launched.
NEAR Wallet Development
The NEAR Wallet team plans to integrate MPC wallets with a better user interface and support for multiple blockchains using Chain Abstraction technology.
The initial third-party blockchain integrated with the NEAR Wallet was Base’s L2 network. The developers chose it because they saw high user activity in this ecosystem.
Other blockchains will be integrated soon, but the team says it’ll happen gradually and carefully. This approach aims to ensure that each new project adds value to HOT users.
Connecting EVM-incompatible blockchains like Solana is still difficult due to signature formats that are incompatible with MPC wallet. But efforts are underway to address this issue. Another technical challenge is the high level of HOT activity, which is not compatible with all networks.
Integrating third-party networks could turn NEAR Wallet into a universal superapp. It would let users interact with any decentralized app right within Telegram. This feature is currently in the beta stage and, according to the team, will be made available for some addresses in the near future.
Furthermore, users of NEAR Wallet will be able to pay fees using HOT regardless of the blockchain on which they are transacting. This should enhance the utility of the token and render MPC wallets more convenient by eliminating the necessity for multiple “gas” tokens.
During the discussion, the team revealed plans to work with the liquidity aggregator 1inch soon, enabling users to exchange HOT ecosystem assets directly within the wallet.
Investment and Support
No information is available to the public about the funding rounds for HOT and NEAR Wallet. The team rejected private investment to distribute tokens to a wider audience instead of just early adopters.
The team indicated that the project receives support from several partners, but they could not disclose their names or specific amounts. Furthermore, HOT gets income from various other sources, including grants from Near.
The founders of the project have emphasized that the company behind HERE Wallet is distinct from NEAR Wallet or HOT, including in matters related to financing.
HOT Mining, Listing and Tokenomics
The HOT token represents the fundamental element of the NEAR Wallet ecosystem. You can use the token to pay fees, join token sales, and mine NFTs. In the future, the number of uses should increase due to tokenization and new products.
It is possible to continue to “mine” HOT via NEAR Wallet, although the token is not traded on the open market and the overall tokenomics of the project remain unknown.
The developers have indicated that they maintain the confidentiality of specific data to implement well-considered campaigns designed to gamify the ecosystem and attract users. The developers suggest that if the audience knows about the listing and giveaway date beforehand, they might lose interest in the activities.
However, it was observed that during the distribution of tokens, the primary focus will be on the community, with a particular emphasis on active users. The founders believe this approach will distribute assets to loyal users. This will avoid the mass token sell-offs seen after many airdrops.
The primary objective is to foster genuine enthusiasm for HOT by enabling users to engage in activities and incorporate new applications and features. Using non-traded tokens as the main currency for activities also reduces regulatory risks.
A full token launch needs careful technical and organizational preparation. This is important because of the large number of users involved. This, in turn, increases the probability of potential failures and errors, which must be accounted for.
Regarding HOT mining, the team initially reported that the campaign would end in May 2024. However, the plan was revised to integrate at least three substantial EVM networks before ceasing mining operations, along with fulfilling certain KPIs within the Near.
Furthermore, the developers said mining would soon evolve with added gamification. For instance, “potions” will be introduced, allowing players to instantly fill their vaults and accelerate HOT accumulation more rapidly than through standard gameplay.
Another focus area will be expanding the initial missions. Along with the six current quests, new ones will be added through future partnerships. Potions will also be related to completing these quests.
The developers know that stopping mining, whether slowly or suddenly, might cause users to lose interest. The goal now is to find a balance and choose the best time for a full launch.
HOT Protocol
A recent update in the project is the HOT Protocol. It sets up infrastructure for the mentioned MPC wallets.
MPC wallets represent a technological innovation that involves the splitting of a private key into fragments, which are then transmitted to distinct servers for storage. In the event that a user wishes to authenticate a transaction, they will issue requests to the relevant nodes, each of which will provide a key fragment.
This architectural approach enables the creation of more convenient wallets, such as those that support biometric data-based authorisation. But, a big problem with traditional MPC solutions is that they depend on server security. If some servers get hacked, it’s more likely for brute-force attacks to happen.
Near Chain Abstraction solves this by letting key pieces move between servers without risking the full signature’s security. So, even if a node goes down, the pieces get moved around, so users can still sign transactions.
This technology serves as the foundation for the HOT Protocol, a network of validators for the storage and exchange of key fragments. Based on this infrastructure, users will be able to create MPC wallets that:
- support alternative methods of authorization and 2FA;
- allow transactions to be canceled before they are fully signed;
- can be integrated with various networks;
- enable secure transfer of the wallet through a variable seed phrase.
During the stream, the team supported eight nodes in the HOT Protocol. This is due to technical difficulties currently being experienced during the development stage, as well as the necessity for further optimization in order to reduce the time required for transaction confirmation.
As time progresses, the protocol will become fully open, enabling any user who has blocked a specified amount of HOT as collateral to become a validator. Village owners will be able to use their users’ assets for this purpose through a delegation mechanism.
Another advantage of HOT’s MPC wallet is the integration of cross-chain swaps and proprietary oracles. The team observed that the system is analogous to LayerZero, but with the added benefit of being integrated into the wallet. The architecture lets assets move between networks at a much lower cost than usual solutions.
HOLD Wallet
Another interesting product in the ecosystem is the HOLD Wallet, with 5,000 units available in a limited edition. At the time of the stream, about 700 units were still available.
The team has indicated that HOLD Wallet is a product of the partner project Hito, which has already been integrated with HERE Wallet and is now being developed further within the HOT ecosystem.
HOLD Wallet owners get extra benefits like allocations and airdrops. According to the project team, the practice of offering bonuses to owners of hardware wallets is likely to continue in the future. Furthermore, the developers emphasized that the HOLD Wallet is a high-quality and functional product.
Memcoins and HOT Ecosystem
During the live stream, the project founders were joined by Yurii Olentir (Mister) to discuss additional aspects of the HOT ecosystem.
He noted that the project doesn’t make money from launching meme tokens and other assets. All assets provided by partners are distributed among users. At the same time, the developers work hard to ensure the legitimacy of the team to prevent fraud and maintain audience satisfaction.
According to him, memecoins launched through HOT typically have 180,000-200,000 addresses, which is significantly higher than most assets in this segment. Such projects can attract liquidity from users of other networks interested in HOT distributions.
At the same time, he noted that HOT isn’t responsible for these projects’ actions after the airdrop. He also suggested that any interactions with meme tokens, including those in the HOT ecosystem, should be seen as entertainment, not a way to make money.
