Please use this template to structure your proposals for Hashflow.
- Title: [DRAFT] Make locked-vault rewards less restrictive
- Author(s): Araqen
- Submission Date: 17.01.2023
Simple Summary: The current rewards expiry after 60 days rule is a good idea incentivising active users. However if a person decide to lock the tokens for a period of time it should be allowed to “lock and forget” and treat it as a long-term investment.
Abstract: Locking tokens for period of time, by definition makes the asset unusable. I think that it should be allowed, if someone choses this, to lock the tokens, set the reminder in the calendar and forget about the locked investment until the redemption date. This person should be allowed to collect the deposit with all the rewards at the date when the assets become liquid. Therefore I believe that we should not penalise the long-term dedicated investors and scrap the rewards expiration date from the locked-vault. As confirmed by Victor on Discord, when the lock period expires, the deposit does not produce new rewards unless it’s re-locked therefore we do not risk that people will come back after some years with a big bag of rewards to sell when Hashflow reach a high selling price.
A person that decides to lock the tokens it’s his/her decision whatever or not wants to participate in DAO and use the application actively. By buying and locking the tokens, that person already contributed to the Hashflow ecosystem by increasing the buying pressure and locking the tokens out of circulation.
Motivation: If accepted, this proposal will make rewards collection less time-demanding as with the current arrangement our system forces the user to review the rewards every 60 days. It will be annoying especially for whales with dozens of high-capital investments where they don’t want to worry about collecting rewards every 60 days or participate in the DAO. They simply want to lock the tokens, enjoy boosted APR and come back after a period of time with the new plan to either reinvest or sell.
Benefits (Pros): Even though this proposal could slightly increase the selling pressure after the locking period expires I believe that it will prove to the people that the DAO is constantly evaluating the existing rules and shows the flexibility when new circumstances come into light.
Downside (Cons): The pre-proposal discussion is aiming to find the downsides of this proposal. At the time of writing I can’t think of any downsides apart from the unlikely, potential to increase the selling pressure months or years down the line.
Voting: By voting “yes” you agree to expire the locked-vault rewards after 60 days from the lock expiry.
With the current arrangements:
If you locked your tokens for 6 months on 01.01.2023 and you get 5 HFT reward on 02.01.2023 then that reward will expire on 02.03.2023. In order not to lose any reward you need to log in every 60 days and collect all rewards.
If this proposal passes:
If you locked your tokens for any period of time then your rewards will never expire.
21.01.2023: Changed the proposal from “rewards expire in 60 days from the lock period ended” to “rewards from the locked vault should never expire”. Redacted the proposal to match new criteria and included new facts confirmed by the team.