The Hypernation Community Review Report
Below is the entirety of the Hypernation Community Review Report, recently released to citizens of the beleaguered Hypernation Crypto Ecosystem. I’m planning an OpEd giving my thoughts on the report, both as a Hypernation Citizen, and a member of the Bureau of Forefront.
For now, I just want to get the information out to as many citizens as possible.
I’ll leave the rest to you.
Coverage & Objectives
Report Coverage
1. Overview of challenges and concerns: A summary of the difficulties and issues faced by The HyperNation platform, and an analysis of how they have affected the platform's stability and its token.
2. Proof-of-Burn system for HND: Despite the earnest efforts to stabilize the HNT token price through the diligent implementation of a Proof-of-Burn mechanism for
HND, the desired stability of the HNT token price proved to be elusive.
3. Impact of recruitment and withdrawals: An examination of the effects of recruitment and withdrawals on The HyperNation platform and its token price, and an
assessment of the significance of these factors for the platform's future.
Report Objectives:
1. Enhance transparency and clarity: The report seeks to provide greater transparency and clarity regarding the challenges that The HyperNation platform is facing, and to help stakeholders gain a better understanding of the factors that are affecting The HyperNation’s performance.
2. Regain trust and confidence: The report aims to rebuild trust and confidence with stakeholders by acknowledging the challenges that the platform is facing and outlining
a clear plan for addressing them.
3. Encourage communication and collaboration: The report encourages open communication and collaboration among stakeholders and solicits feedback and
input on the Focused Repayment Assistance Program.
Disclaimer of the
Community Review Report
This report addresses various enquiries regarding The HyperNation and its products, including recruitment, rewards, withdrawals, and financial matters. The platform has faced certain challenges that required essential changes to the rewards system.
Additionally, the platform has encountered unexpected financial setbacks that resulted in a shortage of funds and the need for an alternative solution.
This report also contains information regarding the implementation of a staking mechanism. It is important to note that the fluctuations in The HyperNation platform and its token
are not surprising and are related to the challenges and concerns the platform has been addressing.
Moreover, the report highlights that recruitment has slowed down
since November, way before the decline of HNT value, while withdrawals increased unremittingly, negatively impacting the token's performance in the market.
Terminology
1. HND - HyperNation Dollar
2. HNT - HyperNation Token
3. HWT - HyperWallet Token
4. H.O.S - Hitchhiker of Star
5. 1x - The term “1x” denotes the initial investment or capital that a Citizen allocates for platform subscription, including the Node package, Citizen Welfare and
campaign packages. These funds serve as the starting point for entering the platform and initiating transactions along the way.
6. 1.5x - The term “1.5x” denotes that the FRA initiative introduced by Satoshi AI grants recipients a value of 1.5x their remaining pending rewards in The HyperNation, which
they can subsequently utilize from their FRA account to subscribe to the Assistance Pack without adding in any new funds.
7. Regional Sales Manager (RSM) - The responsibilities of the RSM are as follows:
To hold at least one thousand-person (1000) meeting in the region every month and maintain the ratio of new members at the conference for at least 10% or more of the total number of members;
To recruit and manage at least two (2) external professional speakers per region;
To organize at least one (1) Node motivational conference every month and maintain the Node participation ratio for at least 30% or more of the Node size;
To increase the number of new members by at least 5% in the region as compared to the previous month; and
Other relevant work in connection with the Project, if required, which will be informed beforehand.
8. Official Community Speaker (OCS) - As an OCS, the responsibilities entail the following:
To hold at least TWO (2) meeting/conference/training in the region every week;
To include at least ONE (1) video that are provided in the meeting/conference/training;
To attend our weekly training;
Communicate in a timely manner with the Corporate Speaker;
Other relevant work in connection with the Project, if required, which will be informed beforehand
9. Pegging Team - The role of pegging helps protect it from extreme levels of volatility and minimize rapid and/or significant changes in value that could negatively impact the token’s liquidity.
The Fall of The HyperNation
The downfall of The HyperNation can be ascribed to a range of factors encompassing recruitment, reward, withdrawal, and underlying financial challenges. In an earnest effort to ensure transparency and explain the sequence of events leading to the platform’s unfortunate demise, the team has meticulously compiled a detailed timeline.
This disclosure brings forth valuable insights into the roles and responsibilities of community leaders, while also drawing attention to emerging recruitment and withdrawal trends, and the level of staking adoption. It is evident that these factors played a significant role in the platform’s unfortunate outcome.
By sharing this information, our primary objective is to provide utmost clarity regarding the factors that led to financial losses within the platform.
Incident Timeline Report
October 2022
In relation to HNT, the risk team has identified some front-runners who hold a substantial amount of this token with the intention of its disposal en masse. This situation raises
concerns that the unidentified parties may be manipulating the market by precipitating a sudden and significant sell-off, potentially harming investors who purchased HNT at higher prices and damaging the reputation of the cryptocurrency market as a whole.
An investigation has been initiated, and to stabilize the token value and platform ecosystem, a total of 410 million HND has been burned. Although burning tokens may be controversial, it is a common practice in the cryptocurrency industry to stabilize token value and safeguard investor interests. The strategic decision to burn HND aims to reduce the total supply of the token and increase its value, making the remaining HND in circulation
more scarce and potentially raising its price.
In addition, burning HND helps to maintain the platform ecosystem's integrity by reducing the potential for inflationary pressure. The irreversible act of burning tokens permanently
reduces the token's total supply, removing them from circulation and rendering them unusable.
November 2022
The HyperNation encountered a series of obstacles as the price of HNT tokens experienced a
significant decline, further exacerbated by numerous withdrawals during the holiday season. The decline in token price can be attributed to unidentified HNT token holders accumulating substantial quantities at a low price and subsequently selling them for profit, triggering panic selling and causing a decline in overall token value.
Poor recruitment and community performance, along with high withdrawal rates, have presented substantial challenges for the organization. The internal factor of low community performance has had a significant impact on profitability, hindering financial milestones.
Additionally, the high volume of withdrawals has strained The HyperNation’s finances. All of these challenges have led to a depletion of resources within The HyperNation, making it difficult to achieve desired financial goals and leaving minimal liquidity for day-to-day operations.
December 2022
The introduction of the Hyper Yield Aggregator aimed to incentivize individuals to stake their tokens rather than selling them, but unfortunately, the market in the western region continued to witness significant cash-outs, exacerbating the situation.
In addition to this, recruitment and community performance efforts experienced a decline in various regions. Moreover, there was a notable surge in withdrawals during the month, prompting the implementation of the Weekly Mission program. It was introduced as a means to incentivize Citizens and encourage them to stay actively involved with the platform, thus reducing the number of withdrawals.
Recognizing the necessity to retain users and prevent further attrition, community managers organized Zoom meetings with community leaders. The HyperNation recognized the importance of addressing these challenges and implemented measures to stabilize the price of the HNT token, ensuring the platform's sustainable growth and stability.
January 2023
The New Year Fiesta campaign proved to be a success, characterized by a significant
increase in green box subscriptions. However, it became apparent that the primary motivation for the majority of participants was the allure of referral rewards. Unfortunately,
this led to a situation where many Citizens took advantage of the rewards system by purchasing and associating green boxes solely for their own benefit. As a result, green
boxes were being sold without genuine interest or organic engagement from potential
customers in the organization's products.
Adding to the challenges, there was a persistent rise in large-scale withdrawals across the platform, despite the efforts put into the campaign. Recognizing the need to address these regional challenges that contributed to the platform's fluctuations, weekly meetings and
discussions were conducted with various regional market leaders. These sessions aimed to identify and tackle the specific issues faced by different regions, fostering a collaborative approach to finding solutions.
February 2023
To ensure the stability and liquidity of the HNT value, the Corporation has made adjustments to the withdrawal frequency. This strategic decision aims to discourage large-scale sell-offs by Citizens. Additionally, to safeguard against significant token crashes during unfavorable market conditions, withdrawals now undergo longer processing times. This deliberate delay is essential to maintain the overall security, efficiency, and reliability of the platform, while also mitigating potential risks associated with fraudulent activities.
In recent email communications, information was disseminated to explain the factors contributing to the decline in HNT value and the underlying reasoning behind the implemented measures. By employing measures to mitigate token sales at an unfavorableprice, the Corporation aims to create a supply imbalance relative to the consistently growing market demand. This scarcity of assets would subsequently result in stabilizing the
token’s price, showcasing the impact of increased scarcity on its value. The communication also entreated the Nodes to exhibit patience and extend their support.
The introduction of HND Staking encountered a lukewarm response in the market initially. Restricted withdrawal prompted Citizens to join the staking pool, resulting in heightened interest in HND staking.
March 2023
The decline in the price of HNT tokens can be attributed to profit-taking by opportunists and various market factors, including the ongoing global banking crisis. This crisis has resulted in a liquidity crunch, negatively impacting market sentiment.
Acknowledging these concerns, the Corporation is taking steps to address the situation.
One of the key measures being implemented is the Universal Basic Income (UBI) release rate adaptation. Additionally, the withdrawal frequency is being adjusted to prevent large-scale sell-offs. The risk management team has introduced a release rate of 0.02% as an initial measure while actively exploring alternative solutions.
The team is fully committed to resolving these issues and ensuring the stability of the platform's liquidity. Their primary objective is to bring the HNT price to a state of equilibrium, where supply and demand are balanced and the token's value can stabilize.
October 2022
The risk team has identified significant holders of this token who are front-runners aiming to dispose of it in large quantities.
An investigation has commenced, and in order to stabilize the token value and platform ecosystem, a total of 410 million HND has been burned by The HyperNation Pegging Team.
November 2022
The HyperNation is currently grappling with multiple challenges such as inadequate recruitment and community performance, as well as a high volume of withdrawals.
The Corporation depletes its resources, resulting in minimal liquidity for daily operations.
December 2022
Despite the introduction of Liquidity Mining and Hyper Yield Aggregator initiatives, they failed to attract the anticipated market attention and support, leading to minimal engagement.
Recruitment and community performance persisted to decline in multiple regions, and there has been a notable increase in withdrawals. As a result, the Weekly Mission program was implemented.
January 2023
The New Year Fiesta campaign achieved success as green box subscriptions significantly increased, primarily due to participants being motivated by referral rewards.
Numerous participants took advantage of the rewards system by acquiring and associating green boxes for personal gain; while substantial withdrawals throughout the platform increased persistently.
February 2023
Explanatory emails were sent to clarify the reasons behind the decline in HNT value and to provide insight into why the measures that were implemented.
The market response to the introduction of HND Staking was tepid at the initial stage.
Recruitment and Liquidity Composition Report
According to the report, The HyperNation has observed a significant decrease in the
recruitment drive since early November 2022. Consequently, the Corporation has taken measures to engage inactive Citizens in working towards collective goals through Weekly Mission, which are accompanied by incentives. In order to foster alignment and drive growth, the Corporation has been providing weekly reports to regional leaders regarding the declining number of recruits and community performance, as well as the increased withdrawals leaving the platform.
However, despite these initiatives, the Corporation is still experiencing substantial losses. Unforeseen challenges have resulted in significant financial deficit within The HyperNation. There were also challenges in recruiting new members and a high rate of withdrawals, despite the management’s efforts to enhance activity through offline marketing strategies. Unfortunately, these measures proved insufficient in improving overall engagement nor community performance.
Compounding the situation, unidentified individuals acquired substantial quantities of HNT tokens, leading to market manipulation and a subsequent large-scale sell-off. As a consequence, the price of HNT experienced a sharp decline, thereby reducing the token value (See Appendix 2: Liquidity Withdrawal).
The setback, coupled with the inactions of the majority community leaders in response, unexpectedly resulted in a liquidity shortage, which has adversely affected the platform's
ability to maintain a consistent rewards release rate and adequately incentivize its members. Despite efforts to mitigate risks, the platform has depleted all available resources in attempting to resolve the issue. The platform has minimal liquidity remaining to support its daily operations and is exploring all feasible options to fulfill its responsibilities to all Citizens.
Appendix 1: Recruitment Drive
Appendix 2: Liquidity Withdrawal
Staking Adoption Rate
Staking Objective and Utilization
Staking is a commonly utilized process in blockchain-based token systems. It involves users holding a certain number of tokens and locking them up in a liquidity pool to participate in the network’s consensus mechanism. The primary purpose of staking is to secure the network by incentivizing users to act in its best interest and rewarding those who contribute to it. In some token systems, staking also functions as a governance mechanism, enabling stakers to vote on changes to the protocol. Therefore, staking is a crucial element of numerous blockchain-based token systems and has become increasingly popular in recent years.
HND Staking Adoption Adversity
Despite diligent efforts to rectify the situation and enhance the Citizens' understanding and engagement in the staking system, the desired objectives remained elusive. The Citizens persisted in their limited knowledge and awareness, leading to persistently low participation rates. Furthermore, inadequate communication channels between community leaders and their respective communities, combined with delays in community education initiatives, posed substantial obstacles in establishing a robust ecosystem for The HyperNation.
Insufficient dissemination of information by some community leaders regarding the staking system likely exacerbated the issue, amplifying its impact.
Enquiries by Market Leaders
What factors determine the daily withdrawal limits for Citizens in The HyperNation platform?
The HyperNation upholds its commitment to equal opportunities and UBI for all Citizens, thus establishing withdrawal limits based on individual contributions and community performance. While acknowledging the existence of delays and restrictions in the
withdrawal processing, we are diligently working towards streamlining and enhancing
the overall process. It is important to note that resolving these issues promptly cannot be guaranteed.
In the pursuit of fairness and parity, we have implemented daily withdrawal limits that take into account various factors, such as welfare subscriptions, rebuys, and community performance. If a Citizen’s daily withdrawal limit possesses a negative value in the risk management system, they will be unable to withdraw funds. Furthermore, inactive Citizens who surpass a 30-day period of inactivity will experience a reduction in their release rate to 0.02%. Our risk management team has developed an internal rating system that closely aligns with token price and tokenomics, allowing for real-time adjustments that accurately reflect prevailing market conditions. The withdrawal limit is determined by the withdrawable amount within the tokenomics framework, which may exhibit positive or negative values.
Summary of the incidents in regards to The Hypernation
The HyperNation embarked on a concerted effort to drive the adoption of HND Staking among community leaders through a series of meetings. Although initial adoption rates
were modest, a more intensified promotion in December resulted in a substantial increase in adoption. Recognizing the importance of stabilizing the HNT token price, The
HyperNation introduced the HND staking mechanism as a strategic response to this concern.
Towards the end of 2022, the introduction of HND Staking in late November aimed to incentivize staking instead of selling. However, the HNT token price experienced
significant declines, prompting proactive measures from the risk team to counteract the downward trend and ensure stability in token pricing. A root cause analysis conducted by the Corporation identified the price drop originating from the swap market, where
unverifiable HNT token holders had amassed substantial quantities at the lowest price point and attempted to take profit in December, causing setbacks for the community.
As the year drew to a close, the western market witnessed a cash-out trend associated with holiday celebrations, resulting in diminished community performance and
exacerbating the situation, leading to a sharp decline in token price. Consequently, the platform faced an unforeseen liquidity shortage, impacting its ability to maintain a
consistent reward release rate and adequately incentivize Citizens.
Despite these formidable challenges, The HyperNation remains resolute in finding solutions and ensuring the well-being of the Citizens. However, it is important to note that The HyperNation has utilized all available resources, including reserved funds from prior investment endeavors, projects, and markets, in an attempt to address the issue. Furthermore, the platform currently faces a demanding situation as its asset holdings prove insufficient to sustain the existing rewards system on The HyperNation platform.
Report Conclusion
After careful deliberation, The HyperNation Corporation has reached the realization that
sustaining its operations will no longer be feasible. Following Satoshi AI's acquisition of HyperLab in February, The HyperNation recognised the potential for collaboration, considering that the Citizens of The HyperNation are also stakeholders in HyperLab.
Citizens are encouraged to reach out to their respective community leaders of the region for guidance. This report is hereby declared as up to date, with comprehensive responses provided to all inquiries concerning The HyperNation. Any further inquiries or requests shall be attended to by the community leaders.
Given the circumstances, it is imperative for Citizens to seek guidance from their community leaders in order to effectively navigate the forthcoming alterations in The HyperNation. Apart from that, it is strongly advised that community leaders keep their community well-informed and updated regarding the transitioning plan and its corresponding affiliations.
The HyperNation Corporation remains firmly committed to supporting you during this
transitional period. The direction to navigate the forthcoming changes has not been made lightly, and we acknowledge the potential impact it may have on each of you. Your well-being remains our top priority.
We sincerely appreciate your understanding, patience, and continued support as we navigate through this process. Together, we will overcome the challenges and emerge stronger than ever.