$HAKA Token Community powered Burn Event - Let’s Vote!
Scope: Treasury Diversification, Protocol Owned Liquidity
Authors: Mehdi Suleman, Thomas, Cryptonian, Nelson
Summary:
We propose hosting a $HAKA Community Burn Event to:
- Incentivize governance participation: while the mechanism doesn’t directly incentivize voting or other actions, staking rewards may help improve participation rates.
- Improve value accrual narrative for HAKA token: concrete APR figures and supply restriction may help improve market sentiment.
- Increase resilience to loan default losses: Interest payments keep a share of HAKA tokens off the market during mass NFT market crashes and recapitalization events. This prevents staked HAKA holders from front-running debt auctions.
- Foster community engagement, promote token utilization
- Enhance the utility of HAKA tokens within the TribeOne ecosystem.
Participants who choose to burn HAKA tokens will be able to earn monetary rewards equivalent to the amount burned, limited edition NFTs, increased voting power, early access to the Tribeone V3 app, premium AI tools (NFT appraisals), and more. Each burnt HAKA will grant participants a “Burn Ticket”.
As per the previous proposal regarding Quarterly token buyback the HAKA team has allocated a budget of $15,000 in USDT to support the event and provide these rewards.
Event Details:
Burn Goal:
The community’s target is to burn 2,000,000 $HAKA tokens.
HAKA Treasury Contribution:
The HAKA treasury commits to burn an extra 20% of the total HAKA tokens burnt by the community. For example, if the community burns 600,000 HAKA, the treasury will buy and burn 120,000 HAKA tokens.
“Burn Tickets”:
Participants will earn one “burn ticket” for every HAKA token they burn during the event.
Prize Distribution:
- 10 Random Burn Winners: Each winner will receive 3,000 HAKA bonus tokens. The more burn tickets a participant has, the higher their chances of winning.
- Top #1 Burner: The top burner will receive 30,000 HAKA tokens, a 2x voting power boost for 90 days on our snapshot space.
- Top #2-#3 Burners: The second and third top burners will each receive 6,000 HAKA tokens, a 2x voting power boost for 30 days.
Budget Allocation:
The HAKA treasury has allocated $15,000 in USDT and 400,000 HAKA tokens for the event, which will be utilized as follows:
- $15,000 to facilitate the voluntary burning of HAKA tokens.
- 400,000 HAKA tokens to develop and deliver non stablecoin monetary rewards and exclusive experiences to participants.
DAO Proposal and Options:
Once the terms of the event are finalized, we will open a snapshot proposal offering multiple options to the TribeOne community. The options will include different burn caps, such as NO EVENT, 800,000 HAKA cap 1,200,000 HAKA cap 2,000,000 HAKA cap, and so on. The community will have the opportunity to vote on the preferred burn cap for the event.
Burn Tracker:
To foster transparency and engagement, we will implement a “Burn Tracker” on our discord server. The tracker will display the number of HAKA tokens burned by the community as a measure of ecosystem involvement. It will solely serve as a tool to showcase the collective contribution towards token utilization and ecosystem growth.
By hosting this HAKA Community Burn Event, we aim to promote token burning, reduce the token supply, and encourage active participation within the TribeOne community.
Pick your preferred option
Option 1: No Event
- This option entails not hosting a burn event.
- No tokens will be burned, and no additional utilities, will be distributed.
- The current token supply will remain unaffected.
- The treasury will not allocate a $15,000 budget towards this event.
Option 2: 800,000 $HAKA Cap
- Burn event cap: 800,000 $HAKA tokens
- Treasury burns additional 20% of tokens burned by the community
- Participants earn burn tickets based on tokens burned
- Random burn winners and top burners receive ecosystem prizes, and unique premium access to utilities
- Prizes reduced by 60% from the original 2M burn event
Option 3: 1,200,000 $HAKA Cap
- Burn event cap: 1,200,000 $HAKA tokens
- Treasury burns additional 20% of tokens burned by the community
- Participants earn burn tickets based on tokens burned
- Random burn winners and top burners receive ecosystem prizes, and unique premium access to utilities
- Prizes reduced by 40% from the original 2M burn event
Option 4: 2,000,000 $HAKA Cap
- Burn event cap: 2,000,000 $HAKA tokens
- Treasury burns additional 20% of tokens burned by the community
- Participants earn burn tickets based on tokens burned
- Random burn winners and top burners receive ecosystem prizes, and unique premium access to utilities
- Full budget allocated from the treasury of $15,000 USDT
Note: The community members will have the opportunity to vote for their preferred option, and the option with the highest number of votes will be implemented. The burn event will proceed based on the chosen option, and the treasury will allocate the budget accordingly.
Rev share Calculation:
| T1 | No. Loans | Value | Int Mnt | Tenor | Total Int | Closed loans | Default loans | Profit from Sale | ESF | Total |
|---|---|---|---|---|---|---|---|---|---|---|
| V1 | 56 | 8 | 0.0016 | 9 | 0.0144 | 35 | 15 | 5.7 | 0.25 | 5.964 |
| V2 | 21 | 11.3 | 0.00226 | 6 | 0.01356 | 10 | 5 | 1.65 | 0.269 | 1.933 |
- Values are in ETH
- 2% Interest PM
- Profits from Sale of Defaulted NFTs (Nakamigos)
- ESF (Early Settlement Fee) 5%