{"id":"heng-ai","title":"HENG AI","content":"**HENG AI**, also known as HENG 恒 AI, is an AI-optimized, non-inflationary reward protocol built on the MUD Network. [\\[1\\]](#cite-id-ou2ZXTOnYJAFc1Yt) [\\[2\\]](#cite-id-ILC4IawlQTN0abs2) It facilitates a \"hold-to-earn\" system where users automatically receive daily on-chain rewards in $MUD tokens simply by holding the native $HEI token in their wallets, without any requirement for staking or asset lockups. [\\[3\\]](#cite-id-hqrYlGViVFTgy8OG)\n\n## Overview\n\nHENG AI is a decentralized finance (DeFi) protocol designed to generate passive income for its token holders through a sustainable, activity-based reward model. [\\[1\\]](#cite-id-ou2ZXTOnYJAFc1Yt) The project's official X (formerly Twitter) account was established in January 2026, marking its entry into the crypto space. [\\[2\\]](#cite-id-ILC4IawlQTN0abs2) The name incorporates the Chinese character \"恒\" (Héng), which translates to \"constant\" or \"permanent,\" reflecting the project's goal of long-term sustainability. [\\[2\\]](#cite-id-ILC4IawlQTN0abs2)\n\nThe protocol's core mechanism levies a tax on all buy and sell transactions of its native token, $HEI, conducted on decentralized exchanges (DEXs). The revenue generated from these taxes is programmatically used to acquire $MUD tokens, the native currency of the MUD Network. These $MUD tokens are then automatically distributed daily to all wallets holding $HEI. This model ensures that rewards are derived from real trading activity and on-chain fee generation rather than through inflationary token minting, which would dilute the total supply. [\\[3\\]](#cite-id-hqrYlGViVFTgy8OG) [\\[1\\]](#cite-id-ou2ZXTOnYJAFc1Yt)\n\nA key architectural component of HENG AI is its advisory Artificial Intelligence (AI) layer. This off-chain system analyzes public on-chain data, including trading volumes, liquidity levels, and holder retention patterns, to recommend adjustments to key protocol parameters. The aim of these recommendations is to optimize the protocol's long-term health and stability. However, the AI functions only in an advisory capacity. All proposed changes must be submitted to the community for a vote and approved through a governance process before being implemented by the smart contracts, ensuring decentralized control over the protocol's evolution. [\\[1\\]](#cite-id-ou2ZXTOnYJAFc1Yt)\n\n## Architecture\n\nThe HENG AI protocol's architecture is a cyclical system centered on its smart contracts, an off-chain advisory AI, and a community-led governance module. The process is designed to be fully transparent and verifiable on-chain. [\\[3\\]](#cite-id-hqrYlGViVFTgy8OG)\n\nThe operational flow of the architecture consists of six main steps:\n\n1. **Trading Activity:** The cycle begins when users buy and sell the $HEI token on supported DEXs. This trading activity is the foundation for all reward generation. [\\[3\\]](#cite-id-hqrYlGViVFTgy8OG)\n2. **Fee Collection:** The protocol's smart contracts automatically apply and collect a transaction tax on every buy and sell order for the $HEI token. [\\[3\\]](#cite-id-hqrYlGViVFTgy8OG)\n3. **Fee Allocation:** The collected tax revenue is algorithmically divided and allocated to three distinct on-chain destinations: a pool for holder rewards, a fund for reinforcing the token's liquidity on DEXs, and the protocol's treasury to support development and operations. [\\[3\\]](#cite-id-hqrYlGViVFTgy8OG)\n4. **Reward Distribution:** The portion of fees allocated for holder rewards, which are collected in $MUD, is automatically distributed daily to the wallets of all $HEI holders. The distribution is proportional to the amount of $HEI held. [\\[1\\]](#cite-id-ou2ZXTOnYJAFc1Yt)\n5. **AI Analysis:** The advisory AI layer continuously monitors public on-chain metrics. It analyzes this data to model the protocol’s health and proposes data-driven optimizations to parameters like tax fees and reward distribution rates. [\\[1\\]](#cite-id-ou2ZXTOnYJAFc1Yt)\n6. **Governance Implementation:** Any changes recommended by the AI are not implemented automatically. They are submitted to the community as formal proposals. $HEI token holders then vote to approve or reject these changes, providing a human-in-the-loop, decentralized control mechanism. Approved changes are then executed by the smart contracts, which contain fixed limits to prevent extreme parameter adjustments. [\\[1\\]](#cite-id-ou2ZXTOnYJAFc1Yt) [\\[3\\]](#cite-id-hqrYlGViVFTgy8OG)\n\n### Advisory AI Layer\n\nThe AI optimization layer is an off-chain advisory system that analyzes a range of public on-chain metrics related to the token's ecosystem. This includes trading patterns, liquidity depth, holder retention, and other indicators of market health. It uses this data to model and recommend optimal adjustments to protocol parameters. The goal is to enhance long-term sustainability by dynamically adapting to changing market conditions. All suggestions from this layer are subject to community approval. [\\[1\\]](#cite-id-ou2ZXTOnYJAFc1Yt)\n\n### Governance Module\n\nHENG AI incorporates a human-in-the-loop governance model where the community of token holders has the final authority. No changes to protocol parameters, even those recommended by the advisory AI, can be implemented without a successful governance vote. This ensures that the protocol remains decentralized and that its evolution aligns with the interests of its community. [\\[1\\]](#cite-id-ou2ZXTOnYJAFc1Yt) [\\[3\\]](#cite-id-hqrYlGViVFTgy8OG)\n\n### Market Health Index (MHI)\n\nThe protocol features a proprietary Market Health Index (MHI), which is a public and transparent metric designed to provide insight into the ecosystem's overall health. The MHI is presented as a score ranging from 0 to 100 and tracks a variety of key performance indicators, including liquidity depth, holder growth, and trading consistency. This index serves as a transparent tool for the community to gauge the protocol's performance. [\\[1\\]](#cite-id-ou2ZXTOnYJAFc1Yt)\n\n### Smart Contracts\n\nThe protocol operates on auditable smart contracts that reportedly do not provide private key access for administrative control. The contracts are equipped with emergency safeguards and are designed with fixed, unchangeable limits to constrain any AI-recommended adjustments, preventing drastic or malicious parameter changes. All functions, including fee collection and reward distribution, are managed on-chain. [\\[1\\]](#cite-id-ou2ZXTOnYJAFc1Yt) [\\[3\\]](#cite-id-hqrYlGViVFTgy8OG)\n\n## Products\n\nThe core product of the HENG AI protocol is the **HENG AI ($HEI) Token**. It functions as a liquid, non-inflationary, reward-bearing asset. Holding the $HEI token is the sole requirement to access the protocol's automated daily reward system. [\\[1\\]](#cite-id-ou2ZXTOnYJAFc1Yt) [\\[4\\]](#cite-id-9EpmEcDjSPgTJMAw)\n\n## Features\n\nHENG AI incorporates several features designed to provide a frictionless and sustainable yield-bearing experience. [\\[1\\]](#cite-id-ou2ZXTOnYJAFc1Yt)\n\n* **Hold to Earn:** The central feature of the protocol is its \"Hold to Earn\" mechanism, which automatically distributes rewards to users simply for holding the $HEI token in a compatible wallet. [\\[3\\]](#cite-id-hqrYlGViVFTgy8OG)\n* **Frictionless and Automatic Rewards:** Users receive rewards directly in their wallets without needing to stake, lock, or otherwise commit their tokens. This process eliminates friction and interaction with dApps, and it allows holders to maintain full custody and liquidity of their assets. [\\[1\\]](#cite-id-ou2ZXTOnYJAFc1Yt) [\\[2\\]](#cite-id-ILC4IawlQTN0abs2)\n* **Real On-Chain Yield:** Rewards are generated from taxes on actual trading volume of the $HEI token on DEXs. These rewards are paid in $MUD tokens, representing yield derived from real market activity rather than from inflationary emissions. [\\[1\\]](#cite-id-ou2ZXTOnYJAFc1Yt)\n* **Non-Inflationary Model:** The protocol is explicitly designed to be non-inflationary. The total supply of $HEI is fixed, and rewards are funded by redistributing collected transaction taxes, thereby avoiding the dilution of value that comes with minting new tokens. [\\[3\\]](#cite-id-hqrYlGViVFTgy8OG)\n* **AI-Powered Advisory for Sustainability:** An advisory AI layer provides data-driven recommendations to adjust protocol parameters, with the aim of ensuring the long-term viability and stability of the reward system. [\\[1\\]](#cite-id-ou2ZXTOnYJAFc1Yt)\n* **Incentives for Long-Term Holding:** The system is structured to reward long-term holders. Mechanisms reportedly include applying higher fees to short-term selling, with the collected value redistributed back to loyal community members. [\\[1\\]](#cite-id-ou2ZXTOnYJAFc1Yt)\n* **Decentralized Community Governance:** All significant parameter adjustments proposed by the advisory AI must be approved by the community of $HEI token holders, ensuring that decision-making power remains decentralized. [\\[3\\]](#cite-id-hqrYlGViVFTgy8OG)\n* **Security and Transparency:** The protocol operates on auditable smart contracts without private key control. All core functions, including fee collection, reward distribution, and governance actions, are transparent and verifiable on the blockchain. [\\[1\\]](#cite-id-ou2ZXTOnYJAFc1Yt)\n\n## Ecosystem\n\nThe HENG AI ecosystem is composed of several interdependent components that work together to generate and distribute rewards. [\\[3\\]](#cite-id-hqrYlGViVFTgy8OG)\n\n* **$HEI Token:** The native token of the HENG AI protocol. Holding this token is the sole requirement to earn rewards and participate in governance. [\\[1\\]](#cite-id-ou2ZXTOnYJAFc1Yt)\n* **$MUD Token:** The token used as the reward asset, distributed daily to $HEI holders. It is the native token of the MUD Network. [\\[3\\]](#cite-id-hqrYlGViVFTgy8OG)\n* **MUD Network:** The underlying network or platform that powers the HENG AI protocol. HENG AI is deeply integrated into this ecosystem, using its native $MUD token for rewards. [\\[2\\]](#cite-id-ILC4IawlQTN0abs2)\n* **Decentralized Exchanges (DEXs):** The trading venues where $HEI is bought and sold. These platforms are where the protocol's transaction taxes are collected. [\\[3\\]](#cite-id-hqrYlGViVFTgy8OG)\n* **Protocol Treasury & Liquidity Pools:** On-chain entities that receive a portion of the collected trading fees. The treasury funds protocol development and operations, while the liquidity pool allocation is used to reinforce the $HEI token's market stability. [\\[3\\]](#cite-id-hqrYlGViVFTgy8OG)\n\n## Use Cases\n\nThe primary use cases for the HENG AI protocol and its native $HEI token revolve around generating passive income and serving as a long-term investment vehicle.\n\n* **Passive Income Generation:** The fundamental use case for the $HEI token is to generate a passive stream of income for its holders. By holding the token, users earn daily rewards in the form of $MUD tokens without any active management. [\\[1\\]](#cite-id-ou2ZXTOnYJAFc1Yt) [\\[2\\]](#cite-id-ILC4IawlQTN0abs2)\n* **Liquid, Yield-Bearing Asset:** Because HENG AI does not require staking or locking, the $HEI token remains fully liquid at all times. This allows holders to earn yield up until the moment they decide to sell or transfer their tokens, providing a blend of passive income and asset flexibility. [\\[1\\]](#cite-id-ou2ZXTOnYJAFc1Yt)\n* **Long-Term Investment:** The protocol's design, which includes mechanisms to penalize short-term selling and reward long-term holding, positions the $HEI token as a vehicle for long-term investment strategies within the MUD Network ecosystem. [\\[1\\]](#cite-id-ou2ZXTOnYJAFc1Yt)\n\n## Tokenomics\n\nThe tokenomics of HENG AI are centered around the $HEI token and its role in the tax-and-reward system.\n\n* **Token Name:** HENG AI\n* **Ticker:** $HEI\n* **Token Type:** Reward Token [\\[1\\]](#cite-id-ou2ZXTOnYJAFc1Yt)\n\n### Token Utilities\n\nThe $HEI token has two primary utilities within the ecosystem:\n\n* **Reward Eligibility:** Holding $HEI tokens automatically qualifies a wallet to receive a proportional share of the daily rewards distributed by the protocol, paid in $MUD tokens. [\\[3\\]](#cite-id-hqrYlGViVFTgy8OG)\n* **Governance:** $HEI tokens function as governance tokens, granting holders the right to vote on protocol-related proposals. This includes approving or rejecting parameter changes recommended by the advisory AI. [\\[3\\]](#cite-id-hqrYlGViVFTgy8OG)\n\n### Supply and Issuance\n\nThe protocol is explicitly described as having a non-inflationary model. The total supply of $HEI is fixed, and no new tokens are minted to fund rewards. All rewards originate from the redistribution of taxes collected on existing token trades, which is intended to prevent supply-side inflation and value dilution. [\\[1\\]](#cite-id-ou2ZXTOnYJAFc1Yt) [\\[3\\]](#cite-id-hqrYlGViVFTgy8OG)\n\n### Tax Mechanism\n\nA buy and sell tax is applied to all $HEI transactions conducted on decentralized exchanges. This tax is the sole source of revenue for the protocol and is used to fund the $MUD reward pool, reinforce liquidity, and support the protocol treasury. The specific tax percentages are not detailed in the provided source materials. [\\[1\\]](#cite-id-ou2ZXTOnYJAFc1Yt)\n\n### Allocation\n\nThe provided source materials do not contain information regarding the initial token allocation for $HEI, such as the percentages designated for the team, marketing, liquidity, or a public sale. [\\[1\\]](#cite-id-ou2ZXTOnYJAFc1Yt)\n\n## Partnerships\n\nAccording to its official website and social media, HENG AI has established partnerships or integrations with several entities within the blockchain ecosystem. [\\[1\\]](#cite-id-ou2ZXTOnYJAFc1Yt)\n\n* **MUD Network:** This is the foundational integration for HENG AI. The protocol is described as being \"powered by MUD Network,\" and it uses the network's native $MUD token for all reward distributions. [\\[2\\]](#cite-id-ILC4IawlQTN0abs2)\n* **MetaUser\\_Dao:** HENG AI's X profile states that the protocol is also \"powered by @MetaUser\\_Dao,\" indicating a foundational relationship or direct affiliation with this entity, which appears to be connected to the MUD Network. [\\[2\\]](#cite-id-ILC4IawlQTN0abs2)\n* **Ave.ai:** The logo for Ave.ai is displayed on the HENG AI website, indicating a partnership or integration. [\\[1\\]](#cite-id-ou2ZXTOnYJAFc1Yt)\n* **Blackout:** The logo for Blackout is displayed on the HENG AI website, indicating a partnership or integration. [\\[1\\]](#cite-id-ou2ZXTOnYJAFc1Yt)\n\n## Roadmap\n\nThe project has outlined a five-phase roadmap for its development and expansion. [\\[1\\]](#cite-id-ou2ZXTOnYJAFc1Yt)\n\n* **Phase 1:** Token Launch & Liquidity\n* **Phase 2:** Reward Engine Activation\n* **Phase 3:** AI Optimization Rollout\n* **Phase 4:** Governance & Decentralization\n* **Phase 5:** Ecosystem Expansion","summary":"HENG AI is an AI-optimized reward protocol on the MUD Network. It lets users earn daily rewards in $MUD by holding its $HEI token, without staking. The system is non-inflationary, uses trading fees for rewards, and is guided by community governance.","images":[{"id":"Qmb2QmyKTJoTDDhD4pd7GRyxV3JiihhWobS1z1i7tHiCsU","type":"image/jpeg, image/png"}],"categories":[{"id":"defi","title":"defi"}],"tags":[{"id":"Developers"},{"id":"Protocols"},{"id":"AI"}],"media":[{"id":"Qmb2QmyKTJoTDDhD4pd7GRyxV3JiihhWobS1z1i7tHiCsU","name":"bf9sUhWz_400x400.jpg","caption":"","thumbnail":"Qmb2QmyKTJoTDDhD4pd7GRyxV3JiihhWobS1z1i7tHiCsU","source":"IPFS_IMG"}],"metadata":[{"id":"references","value":"[\n  {\n    \"id\": \"ou2ZXTOnYJAFc1Yt\",\n    \"url\": \"https://hengai.xyz\",\n    \"description\": \"HENG AI Website\",\n    \"timestamp\": 1769717944516\n  },\n  {\n    \"id\": \"ILC4IawlQTN0abs2\",\n    \"url\": \"https://x.com/hengaixyz\",\n    \"description\": \"HENG AI X Profile\",\n    \"timestamp\": 1769717944516\n  },\n  {\n    \"id\": \"hqrYlGViVFTgy8OG\",\n    \"url\": \"https://hengai.gitbook.io/hengai-docs/\",\n    \"description\": \"HENG AI Documentation\",\n    \"timestamp\": 1769717944516\n  },\n  {\n    \"id\": \"9EpmEcDjSPgTJMAw\",\n    \"url\": \"https://t.me/hengaichat\",\n    \"description\": \"HENG AI Telegram Channel\",\n    \"timestamp\": 1769717944516\n  }\n]"},{"id":"website","value":"https://hengai.xyz"},{"id":"twitter_profile","value":"https://x.com/hengaixyz"},{"id":"telegram_profile","value":"https://t.me/hengaichat"},{"id":"references","value":"https://hengai.gitbook.io/hengai-docs/"},{"id":"medium_profile","value":"https://medium.com/@Hengai"},{"id":"commit-message","value":"\"Added HENG AI project page\""}],"events":[{"id":"d07f2e0a-2ac6-45ca-89b5-294845e87f60","date":"2026-01","title":"HENG AI Project Inception","type":"CREATED","description":"The official HENG AI X account (@HengAixyz) was created, marking the project's public inception.","link":"https://x.com/hengaixyz","multiDateStart":null,"multiDateEnd":null,"continent":null,"country":null},{"date":null,"title":"Phase 1: Token Launch & Liquidity","type":"DEFAULT","description":"As part of its initial roadmap phase, HENG AI launched its native token, $HEI, and established initial liquidity pools on decentralized exchanges.","link":"https://hengai.gitbook.io/hengai-docs/","multiDateStart":null,"multiDateEnd":null,"continent":null,"country":null,"id":"4f4ea033-f847-4530-9e8f-854c6b445bdd"},{"date":null,"title":"Phase 2: Reward Engine Activation","type":"DEFAULT","description":"The protocol's core reward engine was activated, enabling the automatic daily distribution of $MUD token rewards to all $HEI holders from collected trading fees.","link":"https://hengai.gitbook.io/hengai-docs/","multiDateStart":null,"multiDateEnd":null,"continent":null,"country":null,"id":"a72f376c-9712-442b-b628-2f782662afcc"}],"user":{"id":"0x8af7a19a26d8fbc48defb35aefb15ec8c407f889"},"author":{"id":"0x8af7a19a26d8fbc48defb35aefb15ec8c407f889"},"operator":{"id":"0xD761762F56019832557d9d3167D363EC45eD83A0"},"language":"en","version":1,"linkedWikis":{"blockchains":[],"founders":["anon"],"speakers":[]}}