Tokenomics Update: Implementation Details & Timeline of [HIP-5] Improving HMX’s Tokenomics for Long Term Growth
Dragons,
With the recent approval of HIP-5.1 & HIP-5.2, HMX will be implementing the following adjustments to the vesting criteria and schedule for $esHMX:
- Staking Requirement: Users must now have DP staked to vest esHMX (1 DP can vest 4 esHMX at any given time).
- Extended Vesting Period: The vesting period for esHMX will now be extended to 36 months.
In this article, we will be going through key topics in light of these adjustments. Specifically:
- A one-off retro DP addback
- Implementation Details & Timeline
A one-off retro DP Addback 🐲
We will be offering a one-time addback for users who have lost DP recently through vesting esHMX or HMX unstaking if they decide to re-stake their esHMX & HMX by July 26th.
The Addback will be calculated using the following formula:
DP Addback = Min(Total DP Burned * (sum of all esHMX & HMX unstaked / sum of all HMX & esHMX staked), Total DP Burned)
Where:
- Total DP burned is the total amount of DP burned during the period of May 1st — July 26th.
- Sum of all esHMX & HMX unstaked is the total amount of all esHMX & HMX unstaked during May 1st — July 26th
- Sum of all HMX & esHMX staked is the total amount of all HMX & esHMX staked during May 1st — July 26th
- The maximum amount of DP addback cannot exceed the total amount of DP burned during the period.
With this formula, every user will have the opportunity to re-coup all of their DP burned before HIP-5.
Implementation Details & Timeline 🗓️
There are four key dates in the implementation plan. Below, we’ll go through what will happen on each day.
Thursday, July 25th
- All activities related to vesting will be paused in preparation for the contract upgrades — i.e., new vesting positions will not be allowed, users cannot claim rewards, users cannot cancel vestings.
Friday, July 26th:
- This is the last day users can re-stake HMX/esHMX in order to receive a DP addback.
Tuesday, July 30th:
- DP for users who choose to re-stake HMX/esHMX will be added back today, according to the formula above.
Wednesday, July 31st:
- All vested HMX will automatically be claimed and sent to users wallet address.
- We will calculate if a wallet has enough DP required to continue vesting all the positions.
- For the case with insufficient DP, we will consider one position at a time, by trying to keep the oldest position first, which will benefit users the most. A position with insufficient DP will be cancelled and restaked.
- All vesting periods of all positions of esHMX that are covered by DP will be adjusted and extended pro-rata to 36 months
- All functions related to vesting will resume working normally.
Closing Remarks 🙇🏻♂️
Thank you, everyone, for your time and attention, and for actively participating in the HMX governance process. Your engagement and feedback are crucial in shaping the future of our platform. We value each of your contributions and are committed to ensuring that your voices are heard and considered in all decisions.
As usual, if you have any questions, please do not hesitate to join our community groups and ask away!
