Is anyone developing something like this currently?
I am imagining something similar to HEX built on Ethereum, but better. For now I will refer to this conceptual token as Staek.
It is not my intention to advertise HEX, but I will briefly describe it and provide some ideas that would improve the concept and build it on AE.
HEX tokenomics:
In HEX you can stake HEX from 1 day up to 15 years and earn more HEX for longer stakes. Theoretically this will decrease supply on the market and boost the price if there is demand. The total inflation per year is capped around 4%. This way if you stake an average length you are getting new coins at the same rate as inflation, as opposed to holding a token like AE itself that inflation goes to miners who sell some on the market.
HEX distribution:
Bitcoin holders are able to free claim a small amount of HEX by signing a message to prove they owned x amount of Bitcoin at the time of the snapshot. The free claim amount decreases to nothing over the course of about 1 year. Free claims required 90% of the HEX to be staked for at least 350 days. There is also a non tiered referral program that gives bonuses. The HEX smart contract also sells HEX for one year similar to the EOS ICO.
How I propose Staek should work: Staek tokenomics;
I believe a simple approach that is easy to understand is best. Perhaps a 1% dividend for a 1-year stake and have the max stake be 5 years with a 5% dividend. These staeks should be variable by 1 day increments to spread out the supply coming onto the market but I think the one percent per year makes it easy for people to mark their calendars etc. I like the HEX approach to emergency unstaking that pays out x% of end balance, x being % of stake length completed.
Staek distribution:
Free claim for 100 days. Day 1 mint 100 Staek per AE held. Decrease claim by 1 every day so 1 AE can only claim 1 Staek on day 100, and none thereafter. Perhaps a mandatory 50 to 90% stake for a year to prevent dumping immediately and retain users’ interest. However, unlike HEX, I do not think the contract should sell Staek (which suppresses price, disincentivizes adoption and free claiming) I believe the developers should be rewarded with a percentage of the inflation. I think a one-level referral program is also a good idea to promote Staek.
What does the community think?
Is a simplified staking token built on AE something you would be interested in? HEX is having some success but I believe is being held back by the creators selling too much and it would be better built on AE, mainly rewarding AE holders who claim early or promote through referrals, and whom stake longer. Having a swap mechanism on day one would be important for the market to create a value.
Percentages and times are of course up for debate. I am also not sure if AE has all the necessary features currently standardized, for example ledger signing. Even if AE is not fully ready yet development could start now. If you are a developer I would be happy to work with you in a marketing role but even if I’m not directly involved I would like to see this happen so I can free claim and refer and I think this would help boost the whole aecosystem.
I have been monitoring the HEX experiment and I can’t say it has been successful so far. There is a lot of mistrust around it and its price plummeted like a fifth grade s**tcoin the second it was listed on an exchange. I also don’t see the utility of the token - it sounds like a wanna-be Ponzi with horrible returns even for early investors. The only way HEX makes sense IMHO (and not too much I must say) is if you have received it for free (with BTC for ex).
My main question is - where will demand for a HEX-like token come from? Especially having in mind the constant inflation, high APR, and constant “free tokens” offerings? I haven’t spent too much time researching HEX, but from I believe it was made possible only because Richard Heart is well-known in the space.
Thanks for your input, Vlad. I know many people do not like hex or Richard heart
The utility of it is mostly store of value and general perception and transfer value like most cryptos. At the moment such a token cannot pay transaction fees but at least all the inflation is going to the holders. “Game theory” of taking supply off market.
Richard Heart is controversial and his marketing efforts we’re a big part of why hex made such a splash. Everyone that bought the first day got burned because of unclear education that there’s only a limited number being sold each day not at a fixed price (I think it would have been better if the contract did not sell tokens at all). But since about the third day the price has been fairly stable and increasing lately. By some metrics it is a success. Over 1% of all Bitcoin were used to free claim, and many Bitcoin are not able to claim because they were in multisig.
Furthermore, if the HEX smart contract can continue selling at the current price for the remainder of the sale duration, 350 days total (day 64 currently), it will have a higher market cap than aeternity (although the bonuses that get paid out to staker’s will probably dip the price but they are spread out a lot). And it is just an ETH contract that two developers made and Richard Hart promoted with zero marketing budget. I don’t have the exact number on hand but many hex Whales have staked for the maximum 15 years…
I am actively looking to hire a developer to create Staek. Dev(s) will get paid for the work and get half of the founder reward of 10% of all minted Staek.
Please send inquirers my way. I am serious about doing this and have a moderate budget.
This will be a good addition to the aecosystem and hopefully feature on the base aepp and can swap on jelly potentially integrated into the Staek aepp
Edit: I am talking with a potential developer but if you are interested in helping you can still contact me
Thanks. We are working on it and I think we can do it. Can’t give an exact timeline yet but hopefully launch by August. The Dev has limited time at the moment, but when that freeze up and we have a little more progress we will record a video about his experience developing on AE and building Staek. I’ll post it here
are you still with us @Josh.chain ? it’s really funny to read that now again. I am talking with some guys in a german community chat and some of them are in the HEX community. personally I never touched this and probably won’t touch it ever. but I think it is a very interesting concept and I do like that the rules are defined by the smart contract itself and the game theory behind it.
if somebody manages to make a fair launch for this I personally would like to see something similar on aeternity. we could even introduce an AE burning mechanism which issues that specific token when AE is sent to the contract and distribute the AE to the burner address ak_11111111111111111111111111111111273Yts (where also all collected name fees are being distributed to by the way)
edit
maybe sth. like 20% burning AE and 80% AE moving into a DAO where stakers can vote on projects on aeternity to fund with that