Havven

Havven is a decentralized payment network that aims to help users reduce their exposure to volatility in the cryptocurrency industry. Here’s our review.

What Is Havven?

Havven, found online at Havven.io, connects collateral holders with people who require low volatility, which creates an incentive-based market for stability. Collateral holders are rewarded when users transact in the stablecoin, compensating them for staking the system.

Havven was founded in 2017 in Sydney, Australia.

Overall, Havven consists of a decentralized payment network and a stablecoin. Stablecoins are a cryptocurrency designed specifically for price stability.

Havven wants to create a decentralized payment network built on a stablecoin capable of capturing all the benefits of a permissionless system while also eliminating volatility.

How Does Havven Payment Network Work?

Havven aims to solve one of the biggest problems in the cryptocurrency industry: volatility.

Holders of Havven tokens will be able to issue a secondary token denominated in US dollars. This will lock the value of the stablecoin to the USD.

Here’s how it works: those who use the stablecoin pay fees to those who collateralize the network, compensating them for the risks of providing collateral and stability. Through this system, collateral providers control the money supply, and fees are distributed based on each individual’s stabilization performance. Havven uses this system to reward those who supply stability while charging those who demand stability. The end result is a balanced stablecoin ecosystem.

Havven achieves this structure using two linked tokens:

Nomin:

Nomin is the stablecoin of the Havven platform. The supply of the stablecoin floats. Its price as measured in fiat currency should remain stable. The token is designed to function as a superior medium of exchange. Therefore, in addition to price stability, Havven should encourage adequate Nomin liquidity.

Havven:

Havven is a token that provides collateral for the system. It has a static (unchanging) supply. The market capitalization of Havven reflects the system’s aggregate value. Ownership of Havven tokens grants the right to issue a value of Nomins proportional to the dollar value of Havven placed into escrow. If a user wishes to release their escrowed Havven, then they must first present the system with the quantity of Nomins previously issued. Havven tokens are being released through an ICO from February to March 2018.

The intrinsic value of the Havven token comes from the fees generated in the network it collateralizes. This creates a form of representative money in which there’s no requirement for a physical asset. This removes the problems of trust and custodianship. Basically, Havven token holders will receive transaction fees according to their stability contributions to the network.

Initially, the stablecoin will hold its value relative to the US dollar. In the future, however, the company may support additional types of stablecoins.

Here’s the process broken down in a step by step way:

Step 1) Alice participates in the token sale, sending 5 ETH (worth $5,000 USD) to the smart contract

Step 2) The token sale closes, and the value of the Havven collateral pool is established, with each Havven worth $0.50 USD

Step 3) Alice receives 10,000 Havven tokens at the end of the sale

Step 4) The system only allows 20% of the value of Havven to be issued as Nomins, which means there’s a buffer of 80% against price changes; this is called the “collateralization ratio”

Step 5) Alice escrows her Havven, and 1000 Nomin stablecoins worth $1 USD each are deposited into the Nomin pool

Step 6) Alice’s Nomins are sold by the Havven system for ETH, and the ETH is deposited into Alice’s wallet

Step 7) Another party, Bob, purchases Nomins and sends them to his friend Carol; during the transfer, a small transaction fee is collected by the Havven system and sent to Alice and other Havven holders

Benefits Of Havven

Why do we need a stable coin? Overall, the goal of Havven is to create a stablecoin that can be used as a reliable holder of value for international money transfers and payments. Some of the specific benefits include:

Ultimately, cryptocurrencies have enormous value and potential. However, few people are comfortable putting everything they own into cryptocurrencies. One of the biggest problems is volatility. Havven aims to solve that problem in a unique way.

The Havven HAV ICO Token Sale

The Havven token sale is scheduled for February 28 to March 6, 2018.

The company has set a hard cap of $30 million USD for the sale. As a Havven token holder, your Havvens will generate fees.

A total supply of 100 million Havvens will be created, with 60 million going to the token sale, 20 million going to the team and advisors, 12 million going to the Foundation, 5 million to partnership incentives, and 3 million to bounties and marketing incentives.

Who’s Behind Havven?

Havven was founded in Sydney, Australia in 2017 by Kain Warwick. Prior to founding Havven, Warwick worked as co-founder and CEO at Blueshyft (a position he continues to hold). Blueshyft is a network of 1200+ retail locations across Australia with a modern, extensible technology platform. It’s also the largest cryptocurrency payment platform in Australia, processing tens of millions in transaction volume.

Other key members of the team include Justin Moses (CTO), who is the Director of Engineering and MongoDB and has significant experience designing and deploying high availability systems at scale.

Havven Conclusion

Havven uses a dual token system to incentivize and reward users for maintaining the value of a stablecoin pegged to the USD. Users receive a reward for contributing stability to the network, and users will pay a fee for taking stability from the network (by spending the stablecoin). You can learn more about the project today online at Havven.io.

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