The Three-Currency System
HYFY uses three separate economic units because a single token cannot safely serve everyday pricing, reputation, and transferable ownership at the same time.
Space Credits
Space Credits are off-chain app credits used for supported features and social actions. They are purchased or granted through approved channels and recorded in an auditable account ledger. Purchases, reversals, and spending use unique references so the same event cannot credit or debit a balance twice.
Space Credits are not crypto assets, cannot be withdrawn to a wallet, and do not convert directly into HYFY. Their purpose is to keep app pricing understandable and independent of token-market volatility.
Karma
Karma is a non-transferable participation balance. It can be issued for qualifying activity under platform rules, but it cannot be bought, sold, or sent to another user. Issuance is bounded and recorded so account balances can be reconciled against their underlying activity.
Karma may have in-app utility. Where the system permits, a portion may also be eligible for a monthly HYFY claim. Claimable Karma and utility-only Karma are tracked separately, allowing in-app usefulness to continue even when claim safeguards limit new token eligibility.
HYFY
HYFY is an ERC-20 token on Polygon. It is transferable once received and can be held in a compatible self-custody wallet. HYFY is optional: the core app does not require users to own it.
The path between these units is deliberately one-way and conditional:
Space Credits -> qualifying activity -> Karma -> optional monthly HYFY claim
There is no direct cash-out promise, no automatic conversion, and no guarantee that a unit of Karma will produce a fixed amount of HYFY. Each layer has a different purpose and its own controls.
Why One Currency Would Not Work
Using HYFY for every like, comment, or feature would make normal app pricing move with the token market. Making Space Credits withdrawable would turn a simple app balance into a financial liability. Allowing Karma to be traded would let users buy reputation instead of earning it.
The separation prevents those problems:
| Unit | Where it exists | Transferable? | Main purpose | Token claim role |
|---|---|---|---|---|
| Space Credits | HYFY account ledger | No | Predictable in-app spending | No direct conversion |
| Karma | HYFY participation ledger | No | Reputation and in-app utility | A portion may become claim-eligible |
| HYFY | Polygon wallet | Yes | Optional on-chain ownership and transfer | Final claimed asset |
A Practical User Journey
Suppose Alice buys Space Credits through the web checkout. The payment provider confirms the purchase, and HYFY records the credit once using the provider transaction reference. Alice then uses some credits on meaningful interactions with Bob's content.
The app records those actions and may issue Karma to the eligible participants under the current activity rules. The Karma does not leave either account, and Bob cannot sell his Karma to Alice or another user.
Later, Alice uses some Karma for an in-app feature. Bob decides to preserve part of his claimable balance. During an eligible monthly window, Bob completes the claim requirements, links his wallet, and submits a request within the budget shown in the app. The request is not an immediate token transfer: it joins the monthly close and must pass the final allocation and proof process.
This journey keeps three different events separate:
- A real purchase creates Space Credits.
- Qualifying participation creates Karma.
- An activated monthly claim may deliver HYFY.
Example Balance Movement
The numbers below illustrate the separation. They are not a fixed Karma reward schedule or a guaranteed token conversion.
| Event | Space Credits | Karma | HYFY |
|---|---|---|---|
| Alice receives a 500-credit pack | +500 SC | No automatic change | No change |
| Alice spends 5 credits on an eligible action | -5 SC | Alice and/or Bob may earn bounded Karma | No change |
| Bob relays 20 eligible Karma | No change | 20 Karma is reserved for the monthly close | No immediate change |
| Bob completes an activated claim | No change | The reserved request is settled | The finalized HYFY allocation reaches Bob's wallet |
The key point is that 500 Space Credits never become 500 HYFY, and 20 Karma does not promise 20 HYFY. Each transition is a separate recorded event with its own rules.
Controls at Each Stage
Space Credit purchases and spending are ledger-backed and idempotent, so repeated payment notifications or button taps cannot legitimately create the same balance change twice. Karma issuance is subject to account and system ceilings so it cannot grow without limits. Claims add another layer of checks around identity, wallet ownership, timing, account risk, monthly capacity, and treasury protection.
This layered design is intentional. It lets HYFY adjust or pause one part of the economy without breaking the others. A delayed claim month does not erase in-app Karma utility, a token-price move does not change Space Credit prices, and an external wallet problem does not prevent someone from using the social app.