HIP03-Token Generation Event planning [Finished]

Proposal
#1

[Final version, note that the actual scenario can changed subjected to the situation. However, the overall metrics will be honored]

This is how the Kick Start process will work:

Step 1:

Team will lend Hectagon 150k BUSD

Step 2:

Hectagon Protocol will deploy code to main net

Step 3:

Hectagon deposit 75k BUSD to the Treasury to mint 75k HECTA.

Step 4:

Hectagon will use (25k HECTA + 75k BUSD) to provide Liquidity in PancakeSwap.

Step 5:

Hectagon will send the LP token to the Treasury.

Step 6:

Hectagon will use 50k HECTA to sell on PinkSale with the price $3 per HECTA. The maximum amount of sale revenue is 150k BUSD.

Step 7:

After PinkSale event, Hectagon will transfer both BUSD and remaining HECTA to the Team to payoff the debt. The Team accept any loss occurs in the process.

Step 8:

Policy team create offer to sell HECTA with discount to the public on smart contract and website.

After step 8, TGE finish.

Summary

This post proposes the Token Generation Event of $HECTA.

Motivation

$HECTA is a proof of value token, meaning $HECTA can only be minted or put into circulation whether a value is added to the protocol. However, TGE needs special-crafted rules to bootstrap the protocol.

Proposal

To start the protocol, there are 2 requirements:

  • There is a liquidity pool for BUSD-HECTA existing on PancakeSwap.
  • There are HECTA available for selling on LaunchPad as a marketing instrument to raise interests from the public.

The initial price for a HECTA at TGE is 3 BUSD.

Therefor, the required steps are:

  • Step 1: Initialize system with 45,000 HECTA

  • Step 2: Announcement of plan to sell discounted HECTA (on website hectagon.finance) to raise funds. There are 2 type of assets we want to receive:

    • Stable token (BUSD)
      • Vesting lengths: 7 days
      • Capacity: x1 (BUSD)
      • Max Payout (Max number of HECTA protocol want to sell): y1 (HECTA)
    • BUSD-HECTA LP Token:
      • Vesting lengths: 7 days
      • Capacity: x2 (BUSD(
      • Max Payout (Max number of HECTA protocol want to sell): y2 (HECTA)
        Each opening will be announced 1 week in advance.

  • Step 3: Start selling HECTA and maintain trading according to market demand.

However, for step 1, there are 2 options:

  • Option 1:
    Step 1.1: Initialize the system with 45,000 HECTA after depositing 45,000 BUSD in the Treasury to uphold the principle “proof of value”.
    Step 1.2: Add 75,000 BUSD and 25,000 HECTA to initialize the liquidity pool on PancakeSwap
    Step 1.3: Reserve 20,000 HECTA as a maximum amount to payback LaunchPad right after TGE. After the protocol finishes its duty to the LaunchPad, the remaining balance will be burnt.
    Step 1.4: However, the BUSD will sit there and do nothing. At a later date, the operation team will withdraw 45,000 BUSD, convert them into HECTA-BUSD LP tokens and place them in the Treasury.
  • Option 2:
    Step 1.1: Initialize system with 45,000 HECTA.
    Step 1.2: Add 75,000 BUSD and 25,000 HECTA to initialize the liquidity pool on PancakeSwap.
    Step 1.3: Reserve 20,000 HECTA as a maximum amount to payback LaunchPad right after TGE. After the protocol finishes its duty to the LaunchPad, the remaining balance will be burnt.

Polling Period

  • Comment will begin now and will end till 31 Jul 2022.

  • The polling process begins after the comment is over and will end within 3 days.

  • No on-chain vote for this proposal.

Poll

  • Option 1
  • Option 2
  • I against this proposal

0 voters

#2

Without a doubt, option 1 will add more value to Hectagon Treasury and Protocol.

1 Like
#3

In case 45,000 BUSD is withdrawn, HECTA is backed by LP token instead of stable token.

1 Like
#4

It will better if we change a little on option 2

Step 1.1: Initialize system with 60,000 HECTA.
Step 1.2: Add 120,000 BUSD and 40,000 HECTA to initialize the liquidity pool on PancakeSwap.
Step 1.3: Reserve 20,000 HECTA as a maximum amount to payback LaunchPad right after TGE. After the protocol finishes its duty to the LaunchPad, the remaining balance will be burnt.

1 Like
#5

Regarding step 1, Option 1, under what logic can you add 45k busd for 45k tokens?

1 Like
#6

Each pHECTA and tHECTA require 1 BUSD fee to mint 1 HECTA → this is the reason

1 Like
#7

As the BUSD in Hectagon can also go toward making investment to growth the treasury size, I think option 2 is more flexible for the team to decide whether to increase liquidity pool size or use it to make investment together with the fund raise from public sale

1 Like
#8

I believe that the team would use the money in the impactful way, rather put it locked and do nothing, so I am on the option 2.

1 Like