39 additions of HDX LP by the Treasury over the course of 13 weeks (1 Quarter)This topic was previously discussed in discussion #221 (https://hydration.subsquare.io/posts/221).
As per the original HDX Token Allocation (https://docs.hydration.net/quick_start/hdx_token#hdx-token-allocation) - 1,795,662,772 HDX were allocated towards growth initiatives, and 251,548,200 HDX towards collator rewards. Previously, the growth HDX were minted by individual referenda as and when they were needed, and the collator rewards were minted every time collators received rewards. Since discussion #221, collator rewards are no longer minted as they are distributed and instead come directly from the Treasury.
This proposal aims to mint the outstanding tokens from these allocations to the Treasury, so that the full HDX supply is minted - with the exception of the remaining LBP participants who have to this date not claimed their tokens. The main rationale outside of operational efficiency, is that currently, popular websites such as coingecko display that only 4 out of 6.5B tokens are circulating - which is incredibly misleading as it suggests there are large supply overhands still in place. The reality is that HDX is now fully vested - with all seed investors, strategic investors, and team members fully unlocked. The only remaining non-liquid tokens are actually under the control of HDX holders, so it is important that this information is correctly displayed.
The numbers:
6,500,000,000 HDX4,563,921,634 HDX78,166,452 HDX1,857,911,914 HDX6,421,833,548 HDXThis is pretty much an accounting task - the max supply is still 6.5B and HDX holders will control the ~ 2B HDX in the Treasury once executed - please reach out if you have any questions regarding this
It has long been an issue that HDX liquidity is very low, and has become more obvious as Omnipool and Hydration has grown - there have been many discussions about how and when to increase HDX liquidity.
Recently, whilst exploring the possibility of adding HDX as collateral to Supply & Borrow, it became very apparent that if we ever want to do so, we need to first significantly increase HDX liquidity on Hydration. Given the pressing desire from the community to be able to use HDX as collateral, as well as the perception of low liquidity of HDX to outsiders, alongside the considerable growth of the Hydration protocol since its' launch - we feel that now is the time to increase HDX liquidity.
In order to avoid speculation about the best timing for the addition of liquidity, I am proposing to gradually increase HDX liquidity over a period of 13 weeks - with 39 individual LPs from the Hydration Treasury totalling 154,810,224 HDX. Each week, HDX liquidity will be increased by ~ 8.5%, broken down into 3 individual additions. As a result, over the course of the quarter, the size of the LPs will gradually increase.
When calculating this schedule, there were 82,000,000 HDX in the Omnipool, which at an HDX price of $0.0106 was the equivalent of ~$869,000 - it is my opinion that it would be reasonable for HDX liquidity to be equal to ~5% of Omnipool liquidity - which is currently at $50M, therefore resulting in target HDX liquidity of $2,500,000 - an increase of $1,641,000 or ~ 155M HDX.
Threshold