Allow converting (locking) of unvested HFT to veHFT. This would include NFT holders, LPs and Traders. Essentially anyone who was/being awarded HFT and is on a vesting schedule. To be clear, this is optional and does not force any unvested HFT holder to do so.
Motivation:
Allow users to access their full voting power as soon as they are awarded with it without having to wait the whole vesting period.
The biggest group that will benefit from this at the moment is the NFT holders group - they will be able to convert some/all of their unvested HFT into veHFT and make their voice heard.
Specification & Rationale:
The conversation of unvested HFT to veHFT is pretty straightforward:
The user chooses the amount of HFT he wishes to convert (lock) to veHFT.
The lock period is set to 2 years (or whatever the max veHFT locking period is in order to get the full power).
The user will not be able to revert this operation.
Benefits (Pros):
Allow all groups (NFT holders, LPs and Traders and future ones) to access their full voting power.
Save gas - instead of claiming and converting to veHFT on a daily/weekly basis - you can do so in far less steps.
Downside (Cons): Not that I can think of.
Voting: Yes for this would mean you want this proposal to be implemented. No for this would mean you do not want this proposal implemented.
This is pretty cool. Wondering how would HFT vest be impacted by this though.
If I lock my HFT into veHFT, would vesting going forward be adjusted down to maintain the 1 year period or remain the same as if I hadn’t locked it?
i.e. 100k unvest, 274 HFT daily vest. I lock 50k into veHFT, would I retain 274 HFT daily or would it be adjusted down to 137 HFT daily?
If it’s the latter I can see it acting as a disincentive and people opting not to lock into veHFT or not as much as they might otherwise. IMO the process should be as frictionless as possible to promote locking.
NFT vesting has a floor of 1000 HFT per day, so you will actually vest a lot quicker. But yeah I agree, it would be pretty cool to keep the same rate as you had prior to converting to veHFT.
good idea but the main problem is see here is that we have not implemented a fee switch due to low trading volume on our DEX so enabling such mechanism is not suggested. the profit from staking based on Vehft model should come from protocol revenue not Emissions.
at this point we definitely need to work on 1) Marketing , 2)more features and then implement a fee switch mechanism.
@Mehdi Perhaps I’m misunderstanding this but the idea is that they won’t earn any staking rewards on this veHFT because it’s technically not earned. It’s purely so they can have gov voting power.
How about making it an all-or-nothing? Given that this gives people voting power for not-yet-earned HFT, it should appeal to the ones who have true desire to govern. Could have a model where, at any point in time, you can take the rest of your unvested tokens and lock them for 2 years. That could be triggered at any point in time, so you can say vest for a month, then decide to lock the rest. Just ideating here.
yeah this could be interesting ,
at any point they are able to lock their tokens for 2 years!
we can then consider some protocol fee for them later (or maybe some boost on their rewards )
but anyone who is motivated to lock his/token without any incentives aligned, proves that he/she is a true hashgang !
The longer the vesting time, the higher the voting power
1 HFT locked for 2 years = 1.00 veHFT
1 HFT locked for 1.5 years = 0.75 veHFT
1 HFT locked for 1 year = 0.50 veHFT
1 HFT locked for 6 months = 0.25 veHFT
Personally I like to keep things flexible on the amount side (but firm on the lock time of 2 years). I think this will promote more locking than going for all-or-nothing.
This mechanism is probably what we will have for HFT - but for unvested HFT I would like to see them getting their full power. Being locked for 2 years also means these users are staying and hopefully participating in gov and engaging with the product.
Yeah I agree - this will be the mechanism for HFT. But for unvested HFT its tricker because there is a “minimum vesting end date”. So far LPs/Traders its 30 days, for NFT holders its around 1 year. To make the UX seemless we just make sure they get 1:1 (HFT to veHFT).
