Plan of Action for the HyChain Node Key Mint on March 2nd

Project Name: Hytopia Guardian Nodes and Node Keys

Node Key Cost Breakdown: https://docs.hychain.com/docs/what-do-node-keys-cost

Objective: Establish targets for the DAO’s approach to the node key mint while also understanding that it will be a fluid situation. A 120 node key example scenario is provided below.

Node Key Overview: Online node keys are rewarded 250,000,000 million TOPIA (6,944,444 per month) over the course of three years. Additionally, 25% of all transaction fees on the Hychain network will be added to the rewards for the online node keys.

Proposal Overview: With $TOPIA being the primary token being distributed to MTD pass holders and with the growing ecosystem, being a large holder of Guardian Node keys will be long term play for the DAO as long as the Hychain/Hytopia ecosystem continues to be relevant.

This is complex mint and forecast due to there being a couple of different things in play with the ETH cost of the mint as well as the quantity of whitelist points needed for each phase of the mint.

The DAO has approx. 1,100 White List pts to use based on our current Hytopia holdings

There are Four Phases of the White List mint: Phase 1: 30 pts per mint (Lasts for six hours) Phase 2: 15 pts per mint (Lasts for six hours after phase 1) Phase 3: 6 pts per mint (Lasts for six hours after phase 2) Phase 4: 2 pts per mint (Lasts for six hours after phase 3) Public: No pts needed, starts after phase 4

In addition to the varying pts needed for the phases, the actual mint cost (in ETH) increases with each Tier of the mint (details in Node Key Cost Breakdown above).

Target ETH spend: 15 – 20 ETH ETH Cap (spend up to): 25 ETH Minimum Node Keys: 100 Target cost per node key: 0.18 ETH or less Max cost per node key: 0.22 ETH

Having flexibility built in will allow us to act quickly if the mint is progressing slower or faster than we anticipated. If the mint is slow, we can hold off and mint more nodes. Overall, we aim to maximize the quantity of nodes we can get during the white list mint without using the white list points too soon.

Projected/Sample Scenario to acquire 120 node keys within these parameters:

Phase 1: No purchases Phase 2: Purchase 40 node keys (projected cost of 0.115 each – Tier 3) Phase 3: Purchase 80 node keys (projected of 0.174901 each – Tier 5) Phase 4: No purchases

White List Pts Used: 40x15 [600] PLUS 80x6 = [480] [1080 TOTAL]

ETH Used: 40x0.115 = [4.6] PLUS 80x0.174901 = [13.9921] [18.5921 ETH TOTAL] Avg per Node key: 0.154934 ETH

Also of note, this pricing does not take into account using a 5% savings for the partner code that we would plan to use.

If the mint progresses more slowly than anticipated, we could purchase less in phase 2 and more in phase 3 or hold out for phase 4. With a 25 ETH cap, this will provide us the flexibility to make these calls without having to try to rush through an additional proposal during the mint. ETH will not be our limiting factor, but rather node mint cost or white list points.

In the above 120 node key scenario, a projection on monthly return assuming 24,000 total nodes minted and 80% of those being online: 120 node keys would generate approximately 43,402.8 $TOPIA per month without factoring in the rewards earned from HyChain transactions. This would net 2,334.48 TOPIA/ETH spent on the node key mint without adding in the HyChain transaction rewards.

We do not know how the mint will progress and how many node keys there will be minted or more importantly, how many will be online, but I feel the above 19,200 node keys online is a reasonable projection.

Also, consider that at 24,000 node keys the mint price is already up to 0.351788 ETH so we will have a much lower entry point than that.