[Update 31 Aug 2022]
The off-chain vote result is favor. An on-chain vote is up here and will be up within 48 hours. Please cast your voice !
This post proposes the principles for managing the APY of the Protocol.
The APY of the Protocol is an amazing reward for our contributors. To make it effective and bring benefits for protocol and our contributors, adjusting the APY is an essential activity to keep the model healthy and fit with the Protocol’s direction, also maintain the stability of the Protocol.
Adjust APY is part of Hectagon’s anti-inflation mechanism. Existing holders and stakers won’t have any disadvantage as everyone has had the 1st month to accumulate tokens through staking + APY will gradually go down in the 60 days before stabilizing so everyone still has the chance to accumulate tokens faster.
Reducing APY will also have a positive effect on new users as it will be easier for them to catch up with existing users through contributions.
Comment will begin now and will end at 11:00 GMT+0 on 28-August-2022
The polling process begins after comment is over and will end at 13:00 GMT+0 on 30-August-2022
Cool, this is what I am looking forward to for so long.
The high APY is actually marketing cost which is great for early bird but would be a big tax to user who join late.
Besides, high APY put me in awkward situation whenever introducing Hectagon to my friends: you talking long term but your high APY make you looks inconsistent.
Let’s do this!
I expect a new mechanism for staking after this proposal is executed. For example, we have a base APY rate, but different package of staking period (1 month, 6 month, 1 year, 3 years…) will have different level of staking rewards as well. Same same as how bank pays you interest.
Does this mean 3% per day will be reduced or total rewards for stakers will be reduced??
You are saying the same thing - total will be reduced AND your personal 3% per day will too.
But instead of # of HECTA growing you should see price going up. This is the plan.
I also second that though to introduce time based staking where longer staking periods come with higher APY.
Stake for 1 month - get X% APY, 3 months - 3X% APY, etc.
Obviously without the right to redeem or reclaim.
Yes agree with you mate. The longer commitment, the higher APY rate.
I think we should fix the APY to 1,000,000% for 12 months, after this time re-evaluate. This will stable the price and is a great incentive to stake. Thanks
1 year stake - 1,000,000% APY
6 month stake - 750,000% APY
3 month stake - 500,000% APY
1 month stake - 250,000% APY
2 Week stake - 75,000% APY
1 Week stake - 50,000% APY
I have 1 proposal for APY as follows: initially stake will receive APY as low as 100% for example, 1 week later APY will increase to 700%, 1 month APY will increase to 10000 APY and other Another timeline
i think very important high APY and Burn mechanism. Burn mechanism is very important for price. Every time good price stability must be ensured for interest more people invest. first year token amount must be 1 m token not 20 m and burn mechanism use for this.
Buy back & burn is going to be executed soon. Check this out mate @rouke77:
"BUY BACK & BURN ANNOUNCEMENT
Hectagon was born under a vision of complete transparency with the mission to solve current Web3 investment problems, mainly the centralisation of Venture Capital funding. In order to deliver on that vision, the protocol decided to execute the common practice of Buyback and Burn to HECTA token through Treasury.
There are a number of reasons for implementing a token buyback and burn, but the main reason is to ensure the stability of the protocol. Crypto markets are incredibly volatile, and it’s not uncommon for the token price to swing wildly. We believe the token burn action will make a positive price action to HECTA.
The token burn will have no impact on the Investment fund. All actions will be recorded frequently in our Hectagon Treasury Update for complete transparency.
You can view Hectagon Treasury Update here: Notion – The all-in-one workspace for your notes, tasks, wikis, and databases."