[HIP #3] - Increased Allocation of HONEY to NFT Holders

Abstract: This proposal offers to extend the emissions of HONEY tokens beyond the previously established two years, to offer a smoother transition from inflationary rewards to protocol revenue (revenue sharing can only be initiated by the DAO and is not a promise by Honey Labs).

Description: Currently, Honey Genesis NFT holders are to receive 50% of the initial liquidity mining incentives, with the rest going towards lenders, borrowers and liquidity providers on the protocol. This amounts to a total of 75,000,000 tokens being distributed to 10,000 NFTs (assuming everyone stakes their NFTs). These 75 million tokens are distributed over two years, meaning each NFT will yield 3750 HONEY tokens annually (~ 10.27 / day).

After a two year period, emissions would stop, and assuming that tokens received are vested, they are eligible for the protocol’s revenue (if the DAO decides to distribute this). This allows us to reduce inflation of the token and start a “road to zero emissions”. At the end of the reward schedule, each NFT will have received 7,500 HONEY tokens.

The following is a proposal that would enable NFTs to yield a total of ~ 11,250 (50% more) whilst also aligning long term incentives.

The 2 year schedule would remain intact, however we propose that instead of a sudden stop in emissions, we gradually reduce the inflation with a halving schedule. The idea is borrowed from the Bitcoin whitepaper and is one of the most successful emission schedules in all of crypto.

To integrate this within our protocol, we won’t be selecting an arbitrary number of tokens to determine the drop off, but instead are implementing this on a yearly basis.

What would this look like for a single NFT?

Year 1 - 3750 tokens

Year 2 - 3750 tokens

Year 3 - 1875 tokens

Year 4 - 937.5 tokens

*Year 5 - etc.

Objective: Provide a smoother transition to zero emissions and allow long term holders in the protocol to receive 50% more value out of their NFTs.

Requirements:Additional tokens would come from the DAO treasury which currently holds 54% of the supply. This DAO treasury was meant to hold tokens on behalf of the community and was created for this exact purpose.

  • Vote A - Pass the proposal
  • Vote B - Decline the proposal
  • Vote C - Draft new proposal

0 voters

33 Likes

This sounds great! I love the halving idea

6 Likes

I agree, it supports the long term holders

7 Likes

Đźood idea, long-term planning and halving will help long-term holders be confident about tomorrow

4 Likes

I love this idea, let’s do it

6 Likes

LFG brothers,this is the way!!!

5 Likes

Great to see this project planning long-longterm.

4 Likes

Vote is yes. Just curious about if this will change the number of tokens being distributed on IDO. If 54% of the supply remains the same, that would mean IDO tokens would have to match the increase, unless the 54% of supply will increase as a result of this.

i.e. 11,250 * 10,000 = 112,500,000 Honey. If 54% of total supply meant to remain the same, that means IDO would have to increase by ~30,000,000 tokens as well.

Conversation with Tom in Discord:
Tom: 1. I don’t get this question, what do you mean 54% of supply stays the same ?

LevelHedge: Additional tokens would come from the DAO treasury which currently holds 54% of the supply… If 54% of Honey tokens is 75 million at present aka the allocation to bees, wouldn’t we have to grow the DAO treasury supply to meet this new allocation of 112.5 million? And if we are, would the 54% of total supply statistic remain the same, because if so, the other token allocations such as for IDO would have to increase to meet the new distribution structure

3 Likes

Pretty much just echo what this guys said.

Excellent proposal! 100% agree

Great idea. Also extends the viability of our bees which I’m all for. We need further proposals to what happens to our bees after the staking period.

1 Like

I like this proposal, what if it has been decided will be the criteria for the revenue being distributed?

Love this proposal. Promotes the long game and I am for it!

Dig it :slight_smile:

Twenty characters.

THATS THE WAY - DO IT :), in my opinion its a great idea… !!

I like the idea, its like the Pi coin HODL :rocket:

Really liking the sound of this idea. My opinion is that halving would benefit our entire community and the ecosystem!

guys what happen to our $Phoney that been claimed to our wallet? it will automatically convert into $Honey during IDO too?

1 Like

Yes, long term planning is the way

1 Like

LFG BROTHERS THIS IS THE RIGHT WAY TO grow IN ALL sense !!!