HIP-36 APY Reduction for the next weeks until the emission plan starts Active:
Yesterday, we took the day to share our views with some experienced and trusted community members. We listened to their comments, concerns and advice to ensure that what we propose to you now is a well thought out approach to the problem at hand. We’re incredibly grateful for their feedback and support as we continue to shepherd this community towards its bright future. As market conditions continue to deteriorate, Core team has been in deep conversation about protecting Hector Finance’s long-term health and continued growth. We have always believed that a healthy token price is superior for our community and users rather than a short-term boom followed by a quick fizzle. It’s imperative that we remain agile. What worked last week, last month, and last year does not work now. This isn’t because we’ve failed to plan for the future, but instead that it would have been irresponsible to force the community into ‘bear market conditions’ when it wasn’t necessary. We’ve adapted as quickly as the markets and community support will allow and are committed to continuing.
We know that reducing APY is likely to produce negative feedback from some community members, but we were clear that it was our wish to keep the APY above 100% *if possible* “However, at this moment it is fair to assume a starting range of between 100 and 200% is very likely” Since these words were written, plenty of things have shifted in the markets; unfortunately, very few are optimistic. Additionally, if we’d been able to enact the emissions plan in May, as initially hoped, we would have been in a position to follow through with this APY. The additional month/month plus has resulted in a substantial number of tokens produced and distributed, increasing our supply above where we had hoped to launch the emissions plan. As always, our job as the Hector Finance team is to find the most effective way forward for the majority of our community, and that is what we intend to do. We are building a blockchain empire focused on actual utility, innovation and expansion, but to do that, we need to keep Hector Finance thriving through the storms.
We believe that reducing the APY is essential to the emission plan launch in the current market conditions. The success of this emissions plan should be close to the heart of every Hectorian as it fundamentally is the future of our market cap and price. Making this move will shorten the timeline to seeing the positive price action results and a lower circulating supply, both pillars of security for our Protocol and users. Initially, we had intended to have a binary vote; however, after the intake of feedback yesterday, we now see several options for the community to debate and cast their ballots.
A. APY Reduction instant to 20% until the emission plan starts; the APY bumps back to 50% for the launch of the emission plan
B. APY Reduction instant to 50% until the emission plan starts; the APY stays at 50% for the launch of the emission plan.
C. No appropriate option was provided.
You will note that the top three options have us starting the emissions plan at 50% APY. Using the best of our calculations, and admitting that some factors are unforeseen and outside our control, this figure provides us with the best chance of prosperity throughout the continued dark market. Locking in this figure now means we will have a single variable to calculate the emissions plan, the circulating supply. The actual value of Hector Finance lies not in her rebase program, but in the ecosystem, we are building together. We have plenty of announcements coming out in the next few weeks that will catch the eyes of new potential users, not least of which is announcing the name of our legendary new football partner. The connection to the team has already begun opening impressive doors to our development team behind the scenes. And we are unbelievably excited to start sharing some of those developments with you. We’re amping up for a very bullish summer, and we’re intent on ensuring the foundation is solid to support what we’re building. Projects with lower, more sustainable APY have a better track record of attracting large long-term investors because they are built to last. As we expand our ecosystem, which we are not rapidly doing, attracting these key players will be critical.
We have the best community in the blockchain. That much is evident everywhere we look. We hope you can see our long-term vision for the community, this Protocol and what we intend to create. We believe that our society is here for much more than just the APY and that you will see the wisdom in what we’re proposing. The emissions plan will start in approximately 4 weeks. To give you some insight into the impact of this reduction at this time: We did buybacks during the last 50 days of 5 million dollars and took approximately 500,000 tokens out of supply. If we froze the APY at the top of those 50 days, we would have a circulating supply of around 2,270,000 tokens, and, while no one can know for sure, that freeze could be reflected by positive price
action as well.
How does dropping APY affect our Protocol over the next four weeks:
APY 100%: over 130,000 additional Tokens in circulation within a month. (BB Value over $1.4 Million)
APY 50%: over 65,000 additional tokens in circulation within a month. (BB Value over $700K)
APY 20%: ~26,000 additional tokens in circulation within a month. (BB Value over $280K)
The BB Value is calculated based on the current price and will be more with price increases.
We realize that lowering the APY further is not part of the get rich quick crypto dream; however, it is a sustainable starting place for the emissions plan, and if we don’t achieve that, we may as well not bother. We want our community to discuss this among yourselves and take this opportunity to seriously consider what we are suggesting, ask questions, talk amongst yourselves, and cast your vote. These steps towards our future must be taken together.
https://vote.hectordao.com/#/hectordao.eth/proposal/0x8f323c76a80c51f3d26de5fc07cf74cce2dcd5c6b363689928c88f82bd881914
