Introduce HAKKA Staking & sHAKKA

Implementation of $HAKKA Staking Contact and New Voting Power

If you are a $HAKKA holder, now you may stake your $HAKKA into a Staking Contract and receive two things: Voting Power (combined with your address) & sHAKKA (a transferrable ERC20 token).

Introducing HAKKA Staking Contract

To create a better HAKKA ecosystem, we have designed a Staking Mechanism of $HAKKA to align the interests and incentives between HAKKA holders and governance participants.

The implementation of HAKKA staking would separate the Beneficiary Rights of $HAKKA holders from Voting Power. Those who stake $HAKKA will be granted a certificate ERC20 token: “sHAKKA”. Meanwhile, voting power will be bound with the address while sHAKKA is minted.

Locking Periods

Staking contract allows HAKKA holders to stake their $HAKKA under different terms of locking periods: 1 month, 3 months, 6 months, and 12 months. The longer the locking period is, the more sHAKKA you will be granted (along with greater voting power being bestowed).

Beginning Parameters

• Stake 1 HAKKA for 12 months will receive 1 sHAKKA ;
• Stake 1 HAKKA for 6 months will receive 0.5 sHAKKA ;
• Stake 1 HAKKA for 3 months will receive 0.25 sHAKKA ;
• Stake 1 HAKKA for 1 month will receive 0.083 sHAKKA

Gradually Incremented Incentives

What’s more, we have implemented an incentivization factor to preserve the time value of sHAKKA: the staking rate (mintage rate) of sHAKKA will be gradually incremented by time, and it will be incremented to 2x every year., which means staking 1 HAKKA for 12 months in the anniversary of staking contract will receive 2 sHAKKA, and so forth.

Staking Mechanism (Vaults)

To make the process of staking and redeeming more smooth, we have implemented a mapping model. Essentially, staker can stake HAKKA for unlimited times. Each stake may be under a different term of period and amount, and every stake is independent of the others. While some HAKKA is staked, a “vault” will be created under the storage of staking contract.

However, the total amount of sHAKKA being minted under an address is accumulated, and it will be used to determine the “voting power”.

Governance Power

Since the deployment of the HAKKA staking contract, the governance power (weight in voting) of each address in Hakka Ecosystem will be only determined by the mintage amount of sHAKKA.

Once HAKKA holders have staked their HAKKA and minted sHAKKA, they may participate in future DAO proposals of Hakka Finance with their governance power. Governance power is immutable and non-transferable. Governance power will be anchored with the address of the staker once HAKKA is being staked.

The governance power of each independent Ethereum address is determined by the mintage amount of the sHAKKA.

Beneficial Rights (Utility of sHAKKA)

Unlike governance power, beneficial rights come with a transferrable ERC20 token: sHAKKA. sHAKKA will be delivered to the stakers’ address once they have finished staking. sHAKKA can be employed, transferred, lent, as well as sold. Therefore, sHAKKA may be freely circulated in the secondary market.

However, while the staking term expired, the staker should have returned the exact amount of sHAKKA to the staking contract to redeem their staked HAKKA.

A variety of utility of sHAKKA might be introduced in the near future.

With the implementation of HAKKA STAKING, it is strengthening the vision of HAKKA holders and welcoming a better quality of decision-making in our future governance.