The 1Hive community is a group of builders committed to collaboration and community enhancement. They are structured as a DAO (Decentralized Autonomous Organization) where all members are independent individuals who initiate, participate in and maintain projects (called swarms). They organize through the Aragon platform on Ethereum, and have recently launched their community currency, called Honey, on the xDai chain to leverage low fees and freedom from mainnet congestion.
As a community currency, Honey is used by the 1Hive community to support infrastructure and ongoing development. Individuals hold and use Honey to show alignment with community goals, and Honey is used to fund projects through a unique mechanism called conviction voting.
Honey is issued on each block and accumulates in a common pool. In the proposal dashboard (called the Honey Pot), anyone can create a proposal to allocate funds for community-based projects. Honey holders then stake on proposals to signal support and determine which proposals pass.
To enable currency exchange and improve liquidity of Honey, Hive1 has deployed a fork of the Uniswap v1 protocol on xDai. This provides users a way to buy, sell, or contribute liquidity for Honey. Additional token pairs and liquidity incentives for providers may also be added in the future