Background

With the successful migration from HMX → DESK, we’ve:

• Upgraded the governance token to DESK - bringing clearer tokenomics, stronger alignment, and deeper utility.
• Transitioned HLP → DLP, creating a safer, more capital-efficient LP foundation for the future.

That said, there’s still ~$130,013 in unclaimed USDC.e rewards sitting idle in the old HMX contracts, linked to inactive addresses that haven’t interacted in months. These funds serve no purpose in their current state and create fragmentation in the ecosystem.

Proposal

To finalize the migration and fully align incentives, we propose the following:

1. Claim all remaining unclaimed USDC.e rewards from HMX contracts tied to inactive wallets.
2. Convert the USDC.e to DESK.
3. Redistribute the converted DESK to the respective inactive addresses, proportionate to their original unclaimed USDC.e rewards.

Execution Options

The community can decide between the following three options:

Option 1 - Convert & Claim

• Provide a 14-day notice period before execution.
• Use the remaining USDC.e in HMX Staking to purchase DESK from the open market.
• After conversion, inactive addresses can claim their entitled rewards in DESK.

Option 2 - Convert, Redistribute & Burn Unclaimed

• Provide a 14-day notice period before execution.
• Use the remaining USDC.e in HMX Staking to purchase DESK from the open market.
• After conversion, inactive addresses can claim their entitled rewards in DESK.
• Allow an additional 3-month claim window. Any DESK still unclaimed after this period will be burned.

Option 3 - No Action

• No action: the unclaimed USDC.e remains in the old contracts.

Notes

• Only rewards tied to fully inactive, unclaimed HMX reward addresses will be included.
• Final DESK amounts will be calculated using the average TWAP price across 14 days.
• Distribution will follow a fair snapshot based on original USDC.e reward entitlements.
• No additional governance vote will be needed post-approval — execution will be handled transparently by the core team with public updates.