HIP - 1.7: The Road Ahead - Rejected

TLDR

This proposal aims to propose and enhance clarity surrounding new investor rounds of the HFD token within the Hodl Finance DAO. Transparency and accessibility are fundamental principles for the DAO, and this proposal delves into the capital raising process, collaborations with partners, and providing insights into the project’s roadmap.

The ecosystem’s focus on generating Realized Profits necessitates funding to kickstart the Market Making. Discussions with tier 1 parties have been promising, and HFD plans to secure initial funding from Ambassadors, followed by further deals with larger Exchanges, Ventures, and DAOs. Deals with lock-up periods and discounted prices for early participants are proposed, with the aim of initiating the trading engine whenever the first funding from Ambassadors is received.

The roadmap entails finalizing deals with partners, launching the updated dashboard with a trading section, collecting funding from additional parties, establishing the Balancer Pool, and ultimately airdropping new tokens to early backers.

Authors

Core Contributors

The why of the proposal

The primary objective of this proposal is to introduce and propose new investor rounds of the HFD token within the Hodl Finance DAO. As a DAO, we uphold the principle of making all decisions in a transparent and open manner, ensuring that the entire process is accessible to the public.

To achieve this, this proposal will delve into the procedure of capital raising, specifically exploring collaborations with ventures and investment partners. Additionally, it aims to propose and offer comprehensive insights into the new timeline, launch plan, and pricing structure of $HFD.

The investment rounds are proposed to initiate the HFD ecosystem and generate Realized Profits. It is crucial to note that all tokens sold will be subject to a cliff period. The funds raised from Exchanges, Ventures, DAOs, and Ambassadors will be entirely allocated to the Trading Treasury, where they will be utilized for the activation of Market Making algorithms. It is essential to know that these funds are not intended to be used for operations. The investment rounds shall be sold through the Bonding contract, ensuring complete transparency as they are recorded on the Blockchain. For operations, there will be a Balancer Pool kickstarting the token launch. The rationale behind this proposal is to seek authorization for utilizing Venture funds to kickstart the ecosystem of the DAO and facilitate Market Making operations.

The longer explanation of the proposal

In the previous proposals, the ecosystem and new tokenomics were subject to voting and approval. The ecosystem resolves around Market Making, which generates Realized Profits used for buybacks and operational expenses of the DAO. Now, it is time to propose to ignite that engine. Over the past months, the Core Contributors have engaged in discussions with tier 1 parties, including Exchanges, Ventures, DAOs, and Ambassadors. These discussions have yielded positive outcomes, and HFD proposes to secure initial funding from the Ambassadors, marking the launch of the ecosystem. Upon the approval of this proposal, deals will be formulated and presented, with the first round of funding expected to be available for initiating the trading engine. Following the ecosystem’s kickstart, the Core Contributors will continue talking with larger Ventures and DAOs for further funding.

In consideration of Ambassadors and early participants, the Core Contributors have designed a special deal incorporating lock-up periods within the Bonding Treasury. The initial bonding sale price (1-year lock-up) for Exchanges, Ventures, DAOs, and Ambassadors is proposed to be set at $0.03, with the option to lock up for 5 years in the Bonding Treasury at a price of $0.0189, subject to approval through this vote. The investment round will sell a maximum of 20% of the Bonding Treasury supply. The remaining 20% will be reserved for post-launch purposes, offering participants a discount of 5-40% on the market price. Further details can be found below.

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It is important to note that the funding will solely be utilized for the Trading Treasury and not for operations. The Core Contributors will possess full discretion to determine the investors and set maximum lot sizes per investor without proposals. Furthermore, the Core Contributors are permitted to engage advisors and ambassadors, whose contributions will be utilized for the marketing campaign of Hodl Finance.

Following the investment round, a Balancer Pool will be established to allow everyone to invest and raise funds for operations until the Market Making algorithms can cover the costs. The objective of this Balancer Pool is to list 20,000,000 tokens at a price of $0.10, depending on the curve of the balancer pool the market price will be decided. The Core Contributors have devised a launch campaign in collaboration with Key Opinion Leaders (KOLs), Ambassadors, and Advisors to facilitate this Balancer Pool. After the Pool has been concluded, the official token will be airdropped, and liquidity will be provided.

Here is the proposed roadmap:

  1. Secure funding from early investors to activate the Market Making engine.
  2. Launch the updated trading section on the dashboard, accompanied by trade reports across social media channels.
  3. Finalize deals with Ventures, Exchanges, and DAOs
  4. Collect funding from other parties, including Ventures, DAOs, and Exchanges.
  5. Launch the Balancer Pool at a price of $0.10, accompanied by marketing partners such as KOLs, ambassadors, and advisors.
  6. Airdrop the new tokens to all early backers.

Together, we will build a thriving ecosystem and pave the way for the future of Hodl Finance DAO.

Budget

No Budget is needed, just the input of the DAO participants.

Poll

Please vote and reply why below if you are “for” or “against” the proposal before it proceeds to vote.hodl.finance

  • For
  • Against
0 voters
1 Like

Hi, I have voted “Against” the proposal.

I appreciate the effort to raise funds for kickstarting the Market Making ecosystem. However, I have some concerns that I believe need addressing for the long-term success of the project.

The idea of a public sale is concerning me. Experience shows that participants in public sales often aim for quick profits and engage in a quick flip strategy. This could lead to a significant sell-off after the public sale, potentially driving the price of HFD down, especially when old holders will be airdropped new tokens, which will increase the sell pressure. To mitigate this risk, I would suggest considering alternatives to a public sale.

I propose focusing on a single seed round (0% TGE, 6 months lock then ~10% every 6 months). This would allow you to attract investors who are genuinely committed to the project’s long-term success and align with the DAO’s vision. Such investors are more likely to support the project during its early stages, even if short-term fluctuations occur.

Btw launching a Galxe campaign to reward new comers is the new thing! :smiley:

Thank you for considering my feedback, and I look forward to seeing further developments in the Hodl Finance DAO.

2 Likes

Hi!

Your feedback is very much appreciated and taken into consideration.

I am glad to hear that you see the value in the initial raise to kickstart the market making and gather some big names that will support Hodl Finance DAO.

Nonetheless, I wonder why you would see the public sale as a bad thing? People who would buy in the balancer pool will most probably not sell below their buy-in because it will be with a loss. Therefore the initial raise is so important so that we can make sure that with the raised funds we generate revenue to buyback HFD & use the operations for marketing to grow the amount of funds gathered from selling the Bonding Treasury.

The vesting that you are proposing is a possibility but like I said before it will be very unlikely that people sell below their buy-in price especially with the bullrun around the corner.

Galxe campaign is something we are going to look into, thanks for that valuable tip! If you are already in our Discord be sure to send more ideas often so that we can improve all together. 100 know more then 1!

Thanks a lot again, if your counter proposal will gain enough support and if it will not effect the interest of people buying in the balancer pool we will implement it.

1 Like

Hello again,

Thank you for taking the time to respond and discuss the topic further. I understand the importance of generating funds through the public sale to support the project’s growth and marketing efforts.

However, In a pessimistic scenario, after the public sale is completed and older holders receive their tokens, there may be a situation where some of these holders decide to cash out their holdings, which could potentially drive the token’s price down. This could cause fear among new buyers, especially those who participated in the public sale and were hoping for quick profits, but instead now they are thinking of cashing out with a little loss.

The market sentiment will play a crucial role, and if the price falls below the initial starting price, it might discourage further interest from potential investors.

I worry that conducting a public sale for V2 tokens could be a risk, and it may not yield the desired results. On the other hand, if you are thinking of locking tokens for older holders to prevent immediate selling, this will create FUD.

If the team is committed to pursuing a public sale, I strongly recommend considering a reputable launchpad where tokens are vested. For example, a structured vesting schedule like 10% at TGE with a 2-month cliff could help maintain price stability and ensure that initial buyers have a stronger incentive to hold their tokens for the long term.

Launching a V2 token is already a challenging task in itself, considering historical experiences, and I can only imagine the additional challenges a V2 token might face if a public sale is involved.

I hope my feedback provides some valuable insights, and I appreciate your willingness to consider alternative opinions. I’m hopeful that the team will make the best decisions to ensure the project’s success in the long run.

2 Likes

Hi!

Thank you so much for giving your feedback. We understand that you feel that other people will sell, creating more and more sell pressure as others also want to sell, which is logical, even more in these bad markets!

As we do not want to bet on the market being great, we will listen to your advice and that of the community, looking at the votes. Us as the Core Contributors, will be researching more in possible ways of raising money, with vested tokens, launchpads or maybe even not doing any funding rounds for operations. We understand that launching a V2 token is very challenging and we have also experienced that. This is why we will decline this proposal and make a (discussion) HIP - 1.7.1, which will be focusing on Ventures investments only!

After your feedback and research from the Core Contributors we will launch discussion HIP - 1.8, which will go in depth for the public launch and public raising.

Thanks a lot again for your valuable feedback and if you have any more suggestions, make sure to join or Discord and we can discuss a lot more!

2 Likes