Financial Statements of Hakka Finance v1
Important Updates for the HAKKA Community
Dear all the HAKKA fans,
We are very lucky to have such a strong community that consists of each and every one of you. Every one of you is very important to us. We would like to declare some important updates:
As we mentioned in the whitepaper of Hakka Finance, “HAKKA is more than a governance token. Although discouraged to do so, users of HAKKA are ultimately able to “rage quit”: holders are able to burn their tokens and draw funds from the vault proportionally at their discretion”.
Not only Team Hakka, but all HAKKA token holders are stakeholders of our organization: Hakka Finance. It is our duty to create a sustainable revenue stream for Hakka Finance in order to further build a remarkable DeFi ecosystem. In order to achieve this mission, we promise to work diligently in developing our products.
Financial Statements (Sep 22nd, 2020)
After almost one month since the launch of BlackHoleSwap, we have earned ~$192,882 USD. This data is from the guildbank of Hakka Finance: 0x83D0D842e6DB3B020f384a2af11bD14787BEC8E7.
There has been approximate ~$100,000,000 in volume traded on BlackHoleSwap as of now. However, we merely take a 0.005% fee from each swap, and the revenue of BlackHoleSwap is ~$4854.
3F Mutual has earned ~334 ETH and ~160 MKR for us. According to IIP, we use 10% of the ETH revenue from the protocol to purchase MKR.
The intrinsic value of HAKKA is now ~$0.0001 (192,882 / 2,147,483,647), and will quickly rise as more people use our products. It’s a good start but is apparently not a satisfactory figure. Team Hakka appreciates all the feedback from the community. After an internal discussion, we have decided to make some big changes to improve Hakka Finance.
<1> Burning unused tokens
The “Earnings Per Token” of HAKKA is determined from both income and the total supply of tokens. As we can see, some unused tokens reduce our EPT. Therefore we have decided to burn tokens that are not going to be used in the next 6 months.
1,511,501,134 HAKKA (70.24% of Total Supply) will be burned.
(32% Liquidity Mining + 20% Future Sales + 17.5% Ecosystem Fund + 19M of Bootstrap Fund)
Burning tokens will not affect the roadmap of Hakka Finance but gives power back to the community. HAKKA holders will vote to approve token minting every half a year. If desired, our monetary policy can be changed as well.
<2> Burn 19M HAKKA of Bootstrap Fund
We had distributed Bootstrap Fund tokens to selected DeFi community leaders with the expectation that they would help promote Hakka Finance to their respective community members. However, some of these individuals’ performances did not meet our expectations. Therefore, they and we reached a consensus that they’ll give up 60% of their locked tokens. A total of 19M early supporters’ HAKKA tokens will be burned and relocated.
<3> Extended Lock-Up Period
We have learned about peoples’ concerns regarding HAKKA whales still holding a lot of tokens. Many of our early supporters who currently hold more than 2M HAKKA are willing to lockup more tokens for a longer vesting period, underscoring their determination to make HAKKA strong. Below are our new lock-up terms:
80% of their HAKKA will be locked up for 24 months.
These tokens will be released from February 2021 with a 1/18 rate per month for 18 consecutive months. A total of 25,840,848 circulating HAKKA will be locked in the next 5 months.
<4> Team Vesting Period Extends to 21 Months
The team’s allocation previously had a 12 month vesting period. The monthly vesting amount will be reduced by half from the fourth month. The total vesting period will be extended to 21 months.
After implementing the four above changes, the circulation supply of HAKKA will be reduced from 128,894,981 to 103,054,133.
The new total supply of HAKKA will be reduced from 2,147,483,647 to 635,982,513.
After the lockup and burn, we will continue to focus on building remarkable DeFi products and improving the performance of Hakka Finance.
We at HAKKA wish you all the best.