Proposal: Update HDN Tokenomics - add HDN Collateral and Fee Distribution
Proposal ID: #29
Proposed by: Hydranet core team
Date: Feb 23, 2024 @ 07:00 pm UTC
Summary:
This proposal outlines updates to the Hydranet DEX Network, specifically focusing on the HDN collateral requirements and the distribution model for trading fees. These updates aim to enhance the network's security, efficiency, and overall value proposition for HDN holders and users.
Details:
1- Background:
1.1 The Hydranet DEX Network has been started and will evolve, with continuous improvements based on community feedback and technological advancements.
1.2 Recent assessments indicate a need for HDN collateral requirements and fee distribution estimations** for the future actors in the network (Titans, Guardians) **to better align with the network's growth and sustainability goals.
2- Proposed Updates:
2.1 HDN Collateral Requirements:
- Adjusting the HDN collateral requirements for network participants to ensure network security and incentivize participation.
2.2 Fee Distribution Model:
- Updating the fee distribution model to provide a more equitable and sustainable revenue stream for network participants and HDN holders.
3- Objectives:
3.1 Enhance network security by ensuring adequate collateralization.
3.2 Increase the attractiveness of the Hydranet DEX Network for new and existing participants.
3.3 Ensure a fair and sustainable economic model that benefits all stakeholders.
4- Implementation Plan:
4.1 Upon approval, the proposed updates will be implemented in phases, with clear communication and guidelines provided to all network participants.
Advantages:
A- Strengthens the economic and security foundations of the Hydranet Network.
B- Encourages long-term participation in the network.
C- Increases the overall value in the utility of the HDN token.
Disadvantages:
A- Potential for slight changes when the network is being built out.
Conclusion:
The proposed updates to the HDN collateral requirements and fee distribution model are designed to bolster the Hydranet DEX Network's long-term viability and success. These changes are expected to benefit HDN holders, network participants, and the broader ecosystem.
Options:
The community has the following options:
1- Approve the proposed updates to the HDN collateral and fee distribution.
2- Reject the proposed updates and maintain the current models.
Copy of proposed Update to Hydranet DEX Network - HDN Collateral and Fee Distribution: https://docsend.com/view/z98jspia6rw782p7
Voting Period:
The voting will commence on Feb 23, 2024 @ 07:00 pm pm UTC and will end on Feb 28, 2024 @ 07:00 pm UTC
Disclaimer: The proposals and projections in this document are built upon estimations deemed reasonable at the time of writing and exist for discussion purposes. The numbers are subject to change, depending on participation levels and other factors that can’t be known until the network is tested in practice. As always, adjustments and tuning will most likely happen and need to be considered when reading. The information in this document is provided for informational purposes only. You should not construe any such information as legal, tax, investment, trading, financial, or other advice.
