Title: Implement $HFT Buyback and Burn
Author: The Hashflow Foundation
Related Discussions: Add protocol fees
Submission Date: 18 Nov 2024
Overview & Summary:
Hashflow’s governance token (HFT) has been traded on markets for almost two years. In 2023, the Hashflow DAO voted to implement protocol fees, with fee proceeds being allocated as follows:
- 30%: HFT token buy back (allocated to Hashflow Community Treasury)
- 50%: HFT token holders who stake their HFT (pro-rata distribution)
- 20%: Hashflow Foundation for operating expenses
This proposal seeks to change this allocation to decrease both the total and circulating supply of $HFT by burning tokens that are currently bought back (30% of protocol fees) rather than allocating them to the community treasury (DAO). In addition, Hashflow Foundation’s 20% allocation of protocol fees would also be reallocated to buying back and burning $HFT.
Technical Specification:
- Fees continue to be trackable on-chain
- 50% of protocol fees will continue to be allocated and distributed to $HFT stakers monthly on a pro-rata basis (no changes)
- Remaining 50% of protocol fees will be used to purchase and burn $HFT by sending tokens to 0x0 address
- Current holdings in buyback wallet would be burned immediately upon implementation of this proposal if passed by Hashflow DAO:
Fee Distribution:
Fees will be distributed according to the following schedule:
- 50%: HFT token holders to stake their tokens (pro-rata)
- 50% HFT token buy back and burn
Benefits (Pros):
- Reduce total and circulating supply of $HFT
Downside (Cons):
- Protocol fees would be used for buyback and burn rather than be allocated to the Hashflow Community Treasury
Voting:
- Yes to implement burn mechanism for HFT buybacks and reallocate Hashflow Foundation’s share of protocol fees to HFT buyback and burn
- No to keep current protocol fee distribution unchanged