[Implemented] Terminate vesting of HFT to NFT holders who hold less than 20% of claimed HFT

[hashflow-hodler]

Proposal Structure

• Title: [DRAFT] Terminate vesting of HFT to NFT holders who hold less than 20% of claimed HFT
• Author(s): @hashflow-hodler
• Submission Date: Dec 20, 2022

Body Paragraphs

Simple Summary:

Terminate vesting of HFT immediately to NFT holders who held or staked less than 20% of the HFT that they claimed from Dec 7, 2022 to Dec 19, 2022. Exempted wallets are those that held or staked at least 40% of the HFT that they claimed over the first 30 days post-TGE (Nov 7, 2022).

Abstract:

Most NFT holders have and continue to dump HFT upon claiming, creating significant and recurring sell pressure on the token and damaging the HFT ecosystem for other participants.

NFT holders have already been compensated for their early contributions to the protocol. This small group of individuals, by virtue of their consistent selling of HFT, continue to display that they do not care to participate in governance nor about the long-term viability of the protocol or the ecosystem. This behavior continues to damage the interests of the protocol as well as all current and future HFT token holders. As such, the HFT vesting for these NFTs should be terminated immediately.

Motivation:

As a long-time Hashflow user, supporter, and token holder, it is disheartening to see the disregard for the ecosystem shown by large and consistent sellers. This constant sell pressure during the early stages of the HFT launch is toxic and could damage the protocol and the interests of all participants.

Because I believe in the future of Hashflow, I am willing to purchase the required 1 million HFT to submit this proposal, unlike those who have no desire other than to make a quick profit.

Specification & Rationale:

• Confirm HFT balance and HFT staking balance prior to NFT vesting

• Confirm the number of HFT claimed and/or staked from Dec 7, 2022 – Dec 19, 2022

• Confirm HFT balance and HFT staking balance as of Dec 19, 2022

• If less than 20% of claimed tokens are still held and/or staked remains, terminate additional vesting

• Confirm HFT balance and HFT staking balance for the period between Nov 7, 2022 to Dec 7, 2022; if at least 40% of the total HFT claimed remains as of Dec 7, 2022, the wallet is exempt from termination of vesting

As stated, NFT holders continue to dump their tokens and damage the ecosystem for all others.

The previous proposal around vesting all NFTs immediately was proposed without issue, similarly, this proposal should also be put to a vote.

Benefits (Pros):

• Eliminate significant and recurring sell pressure on HFT
• Use tokens to instead support protocol and community growth and development
• Create a healthy ecosystem that attracts others to hold HFT and participate in governance

Downside (Cons):

• Upset NFT holders who have already profited at the expense of the protocol

Voting:

• “Yes” to terminate HFT vesting for NFT holders that fit the criteria
• “No” to continue HFT vesting for NFT holders that fit the criteria

[tD1]

Don’t really understand.
If this proposal is passed, what’s gonna happen with tokens of those who doesn’t meet criterias above?
Will these tokens be vested (with current rules) or what?

Reminder, we can’t just burn them or send to treasury, they’re already allocated.

[optimizer]

You cannot “terminate vesting”. The tokens have already been allocated to early users.
This proposal is invalid and I do not think it should be put up for a vote.

[ACV]

I vote YES. It’s a ridiculous token allocation structure that needs to change.

[ACV]

Some info gxmxni wrote on a previous proposal

Computed some data, as it can be seen below.

In total, about 31,879,745 HFT (~3.1% of the network) is left to be disbursed via NFT vests. This won’t be disbursed linearly, as we have a 1,000 HFT floor per GRANT. Some accounts have multiple grants (delegation, sybil activity).

In terms of how much is concentrated into the Top X accounts, data is as follows:

• Top 10: 8,944,720 HFT (0.9% of total supply)
• Top 25: 13,444,952 HFT (1.3% of total supply)
• Top 50: 18,111,331 HFT (1.8% of total supply)
• Top 100: 23,718,201 HFT (2.4% of total supply)
• Top 250: 30,885,632 HFT (3% of total supply)

I also pulled some data in terms of how much the top accounts have unvested from NFTs, as well as 25th, 10th, 250th. For the top 10 accounts, I pulled the number of HFT claimed, the number of HFT currently in their wallet, as well as observed OpenSea activity. Information can be found below:

• 1: unvested: 1,870,894 claimed: 636,575 in wallet: 0
• 2: unvested: 1,798,715 claimed: 54,058 in wallet:0 — spent 120 ETH on buying NFTs
• 3: unvested: 1,287,959 claimed: 107,058 in wallet: 600 — sold a ton of NFTs on OpenSea, some sybil activity
• 4: unvested: 798,533 claimed: 100,519 in wallet: 0 — spent 15-20 ETH on buying NFTs, some sybil activity
• 5: unvested: 654,145 claimed: 209,929, in wallet: 0, OpenSea: sybil activity, made money on sales
• 6: unvested: 569,774 claimed: 199,555, in wallet: 0 OpenSea: sybil activity, also spent about 10 ETH
• 7: unvested: 522,830 claimed: 121,848 in wallet: 21,848, OpenSea: spent around 40 ETH
• 8: unvested: 497,002 claimed: 31,365, in wallet: 31,365
• 9: unvested: 479,555 claimed: 71,680, in wallet: 0, OpenSea: spent around 70 ETH
• 10: unvested: 465,308 claimed: 223,805, in wallet: 0 OpenSea: sybil activity
• 25: unvested: 230,922
• 50: unvested: 147,432
• 100: unvested: 84,994
• 250: unvested: 29,976

My personal subjective interpretation of the data:

• 3% of total supply is a very large number
• NFTs were acquired at an effective 20c-30c per HFT
• a lot of HFT is concentrated to a small number of hands at the top (top 10 get almost 1% of the network, top 50 get almost 2% of the network)
• most wallets likely set up their HFT for sale
• most NFT buyers already dumped for more than they bought with the exception of one wallet (wallet number 2)

Some other thoughts, some of which relate to other comments:

• 40% seems totally arbitrary – I don’t have any opinions on what a better number would be though
• regarding people who transferred to CEX but didn’t sell – they can transfer back
• regarding HFT staked in pools – that stake can be easily computed
• regarding engineering effort to implement such a proposal: a few hours of engineering time, effort is low
• the proposal should ensure that, for example, wallet 2 above would not get screwed in order to get my support

I have some more points that I would personally want to see in order for this to make it to formal proposal form:

1. Would this be based on a snapshot of account balances? If so, what is the suggested date?
2. Would this be a one-off or would it be continuously tracked? Continuous tracking would significantly increase engineering complexity for such a thing.
3. When we say “stop vesting” do we mean cancel the vests? Or do we mean stop vesting until 40% of the amount is in the wallet?

[armin_nzsh]

yes , you should do important thing for your token dumping because a project get big and known with its token,all of your user and even me unsatisfied with your dumping HFT, i am early user and investor ,in everywhere users and buyer and investor said you are scammers and its not good at all ! not ! stop this release token and SELL pressure and gain your HFT token worth for remaining and get big your project ,dont give up your users satisfied
I SAY YES but do this now not later ! now🙏🏻

[moon998]

[1.2]

i disagree.

How long are you going to continue this barren talk?
Would you like to talk about product improvements?

If you are wise, you should withdraw this draft immediately.

[donaldp]

I voted NO,

I think the better way is create more utility and create demand for HFT
not touching the vesting token anymore.

[neil.s]

No

You can’t just cut off a bunch of tokens because you bought some at a higher price!
If you have a long-term vision why you’re upset about the short-term price? The team announced 100 times that this is not an investment.

I disagree for 3 main reasons:

1. You didn’t consider what will happen to those tokens! That’s why this is another greedy proposal.
2. You didn’t consider transfers. I always claim and transfer tokens to my cold wallet. That’s why this is another greedy proposal
3. These tokens are allocated, we should focus on utilities and plans. That’s why this is another greedy proposal!

We are all holders and we believe in Hashflow but this forum is just full of proposals about price.

[Bahadir]

Of course ı agree.Nft holders think just their money.But we care project.Please team dont forget that nft holders is active on all channels because they are old.But too many people dont think like them.We are not nft holders we are HFT holders and so we should do something for that fast sellers

[megawhiz]

Looks like the only way to create value for HFT is to stop future supply increases. If we believe this principally, can we also also stop future team and investor vesting schedules? While NFT vesting is impacting around 30M future HFT tokens, if we stop team/investor vestings, we are looking at impacting 400M HFT tokens! We all know from past experiences that investors and team will dump the token very quickly for 1) tax reasons 2) to diversify. Stopping these vests would really drive a lot more momentum towards HFT price than NFT vests ever will…