Implement $HFT Buyback and Burn

Overview & Summary:

Hashflow’s governance token (HFT) has been traded on markets for almost two years. In 2023, the Hashflow DAO voted to implement protocol fees, with fee proceeds being allocated as follows:

• 30%: HFT token buy back (allocated to Hashflow Community Treasury)-
• 50%: HFT token holders who stake their HFT (pro-rata distribution)
• 20%: Hashflow Foundation for operating expenses

This proposal seeks to change this allocation to decrease both the total and circulating supply of $HFT by burning tokens that are currently bought back (30% of protocol fees) rather than allocating them to the community treasury (DAO). In addition, Hashflow Foundation’s 20% allocation of protocol fees would also be reallocated to buying back and burning $HFT.

Technical Specification:

• Fees continue to be trackable on-chain
• 50% of protocol fees will continue to be allocated and distributed to $HFT stakers monthly on a pro-rata basis (no changes)
• Remaining 50% of protocol fees will be used to purchase and burn $HFT by sending tokens to 0x0 address
• Current holdings in buyback wallet would be burned immediately upon implementation of this proposal if passed by Hashflow DAO

Fee Distribution:

Fees will be distributed according to the following schedule:

• 50%: HFT token holders to stake their tokens (pro-rata)
• 50% HFT token buy back and burn

Benefits (Pros):

• Reduce total and circulating supply of $HFT

Downside (Cons):

• Protocol fees would be used for buyback and burn rather than be allocated to the Hashflow Community Treasury