Most emission systems distribute emissions without meaningful contribution or skill.
Hecto takes a different approach.
Our emissions are distributed every epoch through the Hecto Incentive Program.
They are based on three factors:
- Participation
- Accuracy
- Alignment
Your share of emissions is not random, not fixed, and not purely based on size.
It’s a reflection of how you behave inside the system.
Emissions in the Allocator are based on three layers.
Layer 1: Participation
Everything begins with real participation.
If you’re actively engaging with the system by regularly adjusting your positions based on news events, price changes and more, you’ll earn a base allocation of emissions.
These emissions are sourced from $CC emissions generated by Hecto as a Featured App on Canton.
Hecto Boosts are also a factor in emissions, but they’re intentionally designed to normalize over time:
- When few users are boosted, boosts are more powerful
- When many users are boosted, the advantage compresses
This ensures early that participation is rewarded, but that no advantage lasts forever.
Layer 2: Accuracy
Participation alone isn’t enough.
The Allocator rewards being right.
So the second layer of emissions is accuracy:
- If you’re consistently right, you earn a larger share of emissions.
- If you’re roughly balanced, you earn less.
- If you’re mostly wrong, you earn little or nothing.
The formula for calculating this layer is correct stake minus penalized wrong stake.
Therefore, your concentration affects how accurate you are. If your $HECTO allocation concentration is skewed towards a winner, then your emissions will be higher.
Most importantly, you can’t game the system by spreading allocations across all outcomes.
The system allocates emissions based on net correctness, not hedging.
Layer 3: Holder Alignment
The final layer of emission weightage is holder alignment.
Your total emissions have a multiplier applied to them based on how much $HECTO you hold.
This is where long-term participants are differentiated from short-term participants.
At a high level:
- Balances below 100,000 $HECTO receive no multiplier
- Larger balances receive increasing emission weight
- The highest tier reaches up to 2x emissions
Lossless Speculation
Here’s where the Hecto Allocator fundamentally diverges from traditional prediction markets.
You don’t lose your $HECTO when you’re wrong.
There is no permanent downside to participation.
Instead:
- If you’re right, you earn a larger share of the $CC emissions
- If you’re wrong, you simply don’t earn emissions
This transforms behavior completely.
Every epoch becomes a clean decision of deciding where exactly to allocate your $HECTO.
No fear of loss, and only the opportunity to perform.
The Emission Formula
Every epoch, your emissions are calculated as follows:
(Participation Emissions + Accuracy Emissions) × Holder Multiplier.
All sourced from the Hecto Incentive Program, and powered by $CC emissions.
This means emissions flow to users who:
- Show up consistently
- Make correct decisions
- Maintain long-term exposure
Not just holders. Not just traders. Allocators.
Building Your Strategy
Once you understand the system, emissions stop being something you just earn.
They become something you can strategize for.
Each layer of the Hecto Incentive Program adds a different weighting, and when combined, they create a space to build your own strategy.
You can:
- Participate to qualify for base emissions.
- Concentrate your allocations to maximize accuracy.
- Scale your $HECTO holdings to amplify your multiplier.
There’s no single optimal path, but multiple different ways to express your conviction.
This turns the Hecto Incentive Program into more than just a simple system.
Soon, this will evolve further.
Users will be able to build their own agents on Hecto that execute these strategies automatically:
- Adjusting allocations
- Optimizing across emission layers
- Refining decisions over time
This shift will result in programmable strategies executed by algorithmic allocators.
Most systems simply distribute emissions, but the Hecto Allocator turns emissions into something decided by skill, strategy, and execution.
And over time, the winners won’t be the loudest, largest or earliest.
They’ll be the ones who allocate best.
Because in the Allocator, your edge is how you think.
