HIP - 1.2: Tokenomics

Abstract

The core contributors of the Hodl Finance DAO are proposing a new tokenomics structure for the DAO. This new structure takes into account the current holders of HFT, but also provides opportunities for growth and the efficient operation of the DAO.

Introduction

This new tokenomics proposal is designed to support the long-term success of the DAO by providing a sustainable and adaptable framework for the management of token distribution, liquidity, and governance.

DAO Tokenomics

The core contributors of the Hodl Finance DAO are proposing a new tokenomics structure for the DAO. This new structure takes into account the current holders of HFT, but also provides opportunities for growth and the efficient operation of the DAO.

This new tokenomics proposal is designed to support the long-term success of the DAO by providing a sustainable and adaptable framework for the management of token distribution, liquidity, and governance.

First, lets start with some key metrics:

The core contributors propose to launch the $HFD token on the Ethereum blockchain. The Ethereum network fees and scalability improved a lot after the merge to a proof-of-stake consensus mechanism. This results in a more efficient token contract that is less resource-intensive and more cost-effective to operate.

Proposing the initial price for $HFD to be set at $0.10. This price will be used for liquidity pools and potential listings on various exchanges.

In terms of the token's supply the following characteristics are proposed: the $HFD token will have a finite supply, and the details of the tokenomics will be fully disclosed in the whitepaper. The $HFD token will be used as the primary means of participating in the Hodl Finance DAO ecosystem, and will be used for governance, liquidity provision, and other functions.

A total of 1bn tokens will be issued by the DAO as follows:

Total supply 1.000.000.000

Bonding Treasury 40% (400,000,000 $HFD) Staking Treasury 30% (300,000,000 $HFD) Team & Advisors 13% (130,000,000 $HFD) Operations Treasury 10% (100,000,000 $HFD) Launch Incentives 3% (30,000,000 $HFD) Early backers 3% (30,000,000 $HFD) Liquidity Pool 1% (10,000,000 $HFD)

Special Vesting

Operations Treasury 50 month linear vesting Team & Advisors 1 year locked, 36 month linear vesting

Airdrop to early backers

A snapshot of the Binance Smart Chain will be taken in February to record the amount of $HFT held in every wallet. The snapshot will take place after the approval of the complete ecosystem and plan.

As a token of appreciation it is proposed that the early backers will be distributed thirty million (30,000,000) tokens directly to their wallets based on their share of $HFT tokens. All $HFT will be considered as circulating and the Liquidity Pool will be excluded from the airdrop and added equally among every wallet holding $HFT.

It is important to ensure that the wallet used is ERC-20 compatible to receive the Ethereum airdrop in the same wallet. The token airdrop of $HFD tokens will be planned in conjunction with the DAO's go-to-market strategy.

$eHFD

It is proposed that the governance token used will be called $eHFD, which stands for Escrowed $HFD. $eHFD tokens can be obtained by depositing $HFD tokens in the single side staking pool, or by claiming staking rewards. These tokens will have different use cases, including governance for the DAO.

The $eHFD token is proposed to be used for governing the DAO by allowing holders to vote on proposals. The outcome of these proposals will be determined by the majority vote of $eHFD holders. This mechanism ensures that the DAO is guided by the collective decision-making of its stakeholders.