HiIQ launched on August 4, 2021, and was created to incentivize IQ holders to become long-term holders who lock up their IQ tokens and get involved in the long-term governance of the IQ token and its ecosystem of dapps. The HiIQ system also allows IQ token holders to receive greater utility and access to IQ dapps. The HiIQ staking system allows IQ holders to choose how long they want to lock up their IQ and the number of IQ tokens they would like to stake. The greater the amount of IQ locked and the greater the length of time the tokens are locked the greater the HiIQ balance of the staker. A user's HiIQ balance determines their voting power on governance proposals involving the IQ token and IQ ecosystem. Users also receive IQ token rewards in proportion to their HiIQ balance. 3 million IQ tokens are minted daily for HiIQ users.
HiIQ is a vesting and yield system based off of Curve’s veCRV mechanism. Users may lock up their IQ for up to 4 years for four times the amount of HiIQ (e.g. 100 IQ locked for 4 years returns 400 HiIQ). HiIQ is not a transferable token nor does it trade on liquid markets. It is more akin to an account-based point system that signifies the vesting duration of the wallet's locked IQ tokens within the protocol. The HiIQ balance linearly decreases as tokens approach their lock expiry, approaching 1 HiIQ per 1 IQ at zero lock time remaining. This design encourages long-term holding and an active community. Sushiswap has proposed a similar implementation with their recently announced oSushi token. A sample graph (Curve’s veCRV) illustrating the decrease can be found at this address.