HIP 42: Redemption of the $HEC

Dear Hectorians,

Due to the recent MultiChain hack and its unfortunate impact on the Fantom ecosystem, especially on the stablecoin market, we regret to inform you that Hector Network has suffered significant damage to its ability to operate.

The team took risk management and loss reduction steps to ensure that the loss to the treasury is reduced as much as possible. Despite that, there are $16.06MM in treasury assets and 1,041,483 $HEC tokens in the Treasury.

For that reason, we propose either

(i) the liquidation of Hector Network and redemption of the $HEC token against the funds in the treasury or

(ii) migration of Hector Network and the $HEC token to a different chain (to be decided later) under a different brand.

It is important to note that, in order to avoid manipulation and purchases of tokens by people with $HEC tokens acquired after the snapshots taken on

Fantom (block 65774322 - Jul-14-2023 12:00:00 PM +UTC - https://ftmscan.com/block/65774322)

and

BSC (block 29954999 - Jul-14-2023 12:00:02 PM +UTC - https://bscscan.com/block/29954999)

which corresponds with the time when the decision to propose this HIP was made, will be excluded from the treasury assets redistribution. This measure is taken to protect fairness of the process and ensures that no one can benefit at the expense of other members.

Further on the $HEC held by the Hector Network treasury will not be considered for the purpose of redistribution.

IMPORTANT

Before redistribution of the treasury assets to the $HEC token holders, all contractual, statutory and other legal obligations, including costs of the liquidation, must be fully settled.

Voting options:

LIQUIDATION: I agree with the liquidation of Hector Network and redistribution of all assets present in the treasury as of the day of liquidation to the $HEC token holders proportionally to the amount of $HEC held by each holder.

MIGRATION: I agree with the migration of Hector Network, all assets in the treasury and the $HEC token to an alternate chain (to be decided later) under a different brand, while $HEC token holders shall retain their token holder rights.

In order to prevent further negative impact the MultiChain hack may have on the Hector Network treasury, the voting period for this HIP is set to 48 hours from the time of posting.