FIP-0005 Staking Amendment Proposal

Firstly, we would like to thank everyone for the amazing support that everyone in the community has given to FantOHM. It is unfortunate with all the effort behind the scenes from devs, to marketing, to strategy, as well as the rest of FHM's hard working roster of talent, to see where FHM stands with respect to token price. A lot of work has gone into ensuring that we create a bright future for the protocol, and to address the obstacles FHM faces currently, FHM will provide clarity to the overall community.

We will be taking steps to ensure protocol growth starting with the creation of lock-up periods to reward long term investors, and thus beginning the shift away from the Olympus rebasing model. With the creation of use cases for USDB which will affect the reward structure for FHM, the rebasing model must be modified as FHM moves to a deflationary token structure. Once the emissions reduce, demand for FHM will be dependent on the usage of USDB and adjacent projects, which means creating new products tapping into defi, e-commerce and those that will appeal to more conservative investors. You may have observed the popularity of Luna as UST adoption grew, this is a where we want to take our ecosystem. For our long-term supporters, we thank you for the support throughout this journey and to all of you who have recently discovered us we are looking forward to growing together.

Proposal rationale: The purpose of this proposal is to amend the existing FHM staking pool to reward long-term holders of FHM and reduce rewards to transient holders. We therefore propose that the current staking pool be amended, and a new warm-up based/locked staking pool be created. The new staking pool will have a 30-day warm up/lock-in period. The details of the proposal are as follows:

1. Cut the reward rate in the current staking pool to a 3-digit number +-150% APY

• This means that those that are only in the protocol for the short run will still receive rewards but significantly less than the longer term stakers.
• It is important to note that the APY will still fluctuate and not be fixed as it is a figure dependent on the number of rewards given vs staked %. This however will be significantly lower than the locked periods.

2. Formation of 30-day lockup pool

• Conceptually, this will be shifting the current reward structure to a 30-day lock-in pool to reward longer term investors.
• With regards to the APY, we initially expect it to have a starting range anywhere between 15k-30k, however this will fluctuate due to the unknown parameters such as % staked in the pool and the FHM token price. We anticipate the APY will recalibrate over time as it does currently.
• Creating these lockup periods will assist the protocol in experiencing price appreciation and return value to the investors that believe in the protocol's team and desire for a long-term growth model.
• This structure will allow the protocol to move one step further away from the legacy structure and allow for the creation of its own narrative.

Future development: We are currently in the process of developing a secondary 60-day warm-up staking contract. Once this contract development has been completed and tested, we will notify the community accordingly. We will also evaluate community feedback and reception to the 30day staking pool.