HIP11_Adjusting APY to 0%

Summary

This post proposes to adjust APY to 0%.

Motivation

Actually, the proposal has been proposed and passed to voting round in: HIP10 - Adjusting APY to 0%
However, I want to clarify more about our team’s motivation to adjust APY to 0%, since we believe it will bring positive effects for everyone in longterm.

APY at the hectagon protocol is a tool that plays the role of redistributing % ownership in the protocol. This means that in the case of all stakes, an increase or decrease in APY will not change the net assets of the holders. This is the current situation.

Besides, APY is used to support fundraising, however, fundraising for protocol is still not effective, especially in the current market situation.

The team is also working on a new business model, which has a supporting role and is co-developed with Hectagon Protocol. Adjusting APY to 0% makes the calculation of the conversion rate between the two tokens fixed, and does not cause the value of Hectagon to decrease compared to the new coin.

Proposal

Adjust APY to 0% is part of Hectagon’s anti-inflation mechanism.

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.

The adjustment will take place on or after 15th, January 2023

Polling Period

Comment will begin now and will end at 23:00 GMT+0 on 23-Jan-2023

The polling process begins after comment is over and will end at 12:00 GMT+0 on 30-Jan-2023

  • For
  • Against

0 voters

Poll

For: Action taken if this proposal is accepted.

Against: Action taken if this proposal is rejected.