HIP - 1.6: Dust removal

Abstract

The proposal aims to improve the efficiency of the $HFD airdrop on the Ethereum network by excluding 5,238 wallets holding 9 $gHFD, which have sold or transferred their old tokens and are no longer active hodlers. By removing these inactive wallets, the proposal seeks to prevent the distribution of tokens to holders who are no longer participating, reduce network congestion, and ensure a larger share of airdropped tokens for active hodlers.

Introduction

The Core Contributors are proposing this measure to enhance the effectiveness of the $HFD airdrop on the Ethereum network. Currently, there are 5,238 wallets that still remain in the airdrop despite having sold or transferred their old tokens, due to the presence of dust in their wallets. These wallets collectively hold 9 $gHFD tokens but are no longer active hodlers. The proposal seeks to exclude these wallets from the airdrop to avoid sending tokens to inactive holders.

Proposal

The Hodl Finance DAO recently conducted a test airdrop of the $gHFD on the Sepolia network on June 2nd. The objective of this test was to validate the airdrop script and allow hodlers to verify the correct amount of their upcoming airdrop tokens. During this test, a total of 10,553 hodlers were identified, and among them, 5,238 wallets were found to hold a balance of 0.1 $gHFD or lower. In the cryptocurrency space, such negligible amounts are referred to as "dust."

Dust represents small fractions of digital assets that are impractical to utilize or transact due to associated network fees. It often arises from rounding errors, residual balances, or accumulated fractional amounts over time. Including wallets with dust balances in the airdrop process leads to unnecessary transactions and network congestion.

To address this, the proposal suggests removing the 5,238 wallets that collectively hold approximately 9 $gHFD from the airdrop process. By doing so, the airdrop efficiency can be improved as tokens will be distributed solely to genuine participants who have retained their $HFT without selling or transferring them. Eliminating dust wallets will minimize unnecessary transactions, alleviate network congestion, and reduce associated fees.

During the airdrop on the Ethereum network, wallets holding less than 0.1 HFD will not receive the new tokens if this proposal gets accepted. The remaining $HFD will be distributed among the remaining active hodlers. The Core Contributors anticipate that this measure will incentivize greater participation from active hodlers and eliminate holders who do not wish to retain dust in their wallets. Ultimately, this will benefit the vibrant and engaged HFD community.