Mint $HYDRA Shares for Contributor Rewards and Service Provider Vesting

From its conception, Hydra has been animated by the goal of better aligning incentives among members and contributors within an investment DAO structure. One major line of this thinking was to incentivize high caliber contributions through the use of a fixed pool of $HYDRA tokens that would be awarded on a quarterly basis to members to reward them for contributing useful work that helps Hydra achieve its primary objectives. A second major component of the Hydra design was to incentivize service professionals to support the DAO as members incentivized to benefit from the DAO’s success as vesting shareholders instead of working on a fee-for-service model.

Distributions to members will be allocated according to the most recent quarterly snapshot reflecting each members' share of the allocated and vested $HYDRA tokens.

Based on our prior experience with DAO incentives programs, we propose to ratify the share allocation schedule described in the Hydra Whitepaper and divide $HYDRA shares among capital contributors, our primary service provider Thing3 and sweat contributors as follows:

Capital Contributions - 69% of shares Thing3 (advisors re legal, accounting and fund admin) - 8% of shares Contributor Rewards - 23% of shares

If this proposal passes, a block of $HYDRA tokens representing 31% of the total supply (total capital shares / 0.69) will be minted to the governance multisig Safe.

8% of the total shares will then be placed into a 5 year long Sablier stream to Thing3.

23% of the total shares will remain in the multisig as a contributor reward pool to be partially allocated on a quarterly basis as determined by governance votes.

From this 23% reward pool, Austin McKee will be streamed $100,000 worth of $HYDRA tokens through February 29, 2024 as part of his annual compensation for serving as Hydra’s Chief of Staff. He will also be streamed $100,000 in USD annual salary over the same time period and receive a one time payment of $33,333.32 USD for work performed from October 2022 through February 2023 as agreed to in a Letter of Intent.