Hydranet is in the process of transitioning to a new token named HDN. Are you a HDX holder, or are you considering becoming one? We would like to provide you with some valuable information regarding the upcoming HDN token swap.
Why a new token?
Let us first clarify why a new token is needed!
- Risk of bugs
The HDX token contracts are a fork of the OHM token contracts. The fork was taken when OHM was still at its infancy, meaning that the risk of encountering unknown bugs is present. We have already experienced this a few months back when we had a rebase/staking bug. The rebase bug led to a staking gap of 6.8 million HDX which in turn led to the staking reward distribution being automatically suspended by the staking contracts. Although our developers identified and resolved the bug, there is no guarantee that other bugs won’t arise in the future. - Complexity
The OHM token contracts, and consequently the HDX token contracts, are quite extensive. This got especially apparent when the rebase bug made its entry. Our devs managed to reverse engineer the bug to identify its root cause and solve it! But the sheer complexity of the token contracts made this a tedious process. - Ownership
As you may be aware, Hydranet has a long history. If not, you can treat yourself with an interesting read about it in this 2022 yearly recap. As the new team took over the project, the old team handed over all Hydranet related assets to the new team, including the wallet used for deploying the HDX token contracts. However, there are no guarantees that members from the old team erased all critical information about this wallet, such as the wallet’s private key. A new token deployed using a new wallet will ensure that the Hydranet community has full ownership of the Hydranet token, as no central entity will be able to implement any changes. Only the confirmed 3–6 multisig will be able to implement any changes. - Token supply
The current HDX token has an unlimited supply and a mint function. This means that the token can be inflated upon request. For new investors, this is a huge red flag, and you may have noticed the warning texts on sites such CoinMarketCap and CoinGecko related to this. In other words, the mint function is not favorable from a trust and marketing perspective.
What will change with the new token?
Token holders will probably not notice any differences with the new token, apart from the changed token ticker. The token ticker will change from HDX to HDN, as decided on via a snapshot vote.
What is more important is that the Hydranet community will have complete control and sole ownership of the token. The new token contract will also be made less complex compared to the old token contracts, since much of OHM’s functionality is not needed by Hydranet.
The maximum supply of the token will be 300 million HDN, as defined in the Hydranet tokenomics. Additionally, there will be no mint or burn function, eliminating warnings from platforms like CoinMarketCap and CoinGecko. It should also give us a correct ranking on these platforms as the maximum and circulating supply of the token will now be known.
Token purchases via bonds will still be available, and on-chain governance will be incorporated into the token contract as well. The new token contract will be constructed using pre-audited functions from trusted libraries.
Also, the DEX orderbook team is working on a HDN based fee reduction, as it was voted here, resulting in more utility for all token holders. More steps to decentralize the Hydranet ecosystem are planned and will be discussed once the Hydranet DEX and the new HDN token are in mainnet.
New Frontend For Bonds (Testnet)
We are delighted to announce the launch of a newly designed interface for the HDN testnet smart contracts. This enhanced front-end will provide our community with an intuitive and efficient platform to engage with our newly introduced token.
You can test it for yourself here: https://preview-bonds.hydranet.ai/
To buy testnet bonds, you can get Arbitrum testnet wETH here: https://goerli.arbiscan.io/address/0x9402e61033c7CA83269b237EA288bD57135d2D77#writeProxyContract#F6 or use the faucet bot at our Discord.
The HDN testnet smart contract is:
0xC59DA616B7f3De41D7EA4D02F95abAF7C77b9D0A
The Bonds testnet smart contract is:
0xd6381a64E2374dF81038AC5D7bfc1A0650d019Bb
What do you need to do?
Token holders do not need to take any actions! A snapshot will be taken on a specified date (to be announced) and all HDX and sHDX token holders will receive the new HDN token through an airdrop at a 1:1 ratio. gHDX holders will get an airdrop at 1:1,464502574. In other words, 1 HDX will yield 1 HDN.
It is important to note that this is not an additional airdrop, but a 1:1 replacement!
Liquidity providers will need to withdraw their liquidity from the liquidity pools starting today to prepare for the HDN transition.
PLEASE REMEMBER, HDX HOLDERS DO NOT NEED TO DO ANYTHING TO RECEIVE THE AIRDROP! ALL INFORMATION TO TOKEN HOLDERS AND LIQUIDITY PROVIDERS WILL BE COMMUNICATED VIA OUR OPEN SOCIAL MEDIA CHANNELS, NEVER IN PRIVATE MESSAGES. IF YOU GET A PRIVATE MESSAGE ABOUT THIS TOPIC, IT IS A SCAM!
Key takeaways
- A new Hydranet token, HDN, will be created.
- HDX, sHDX token holders will receive HDN through an airdrop at a 1:1 ratio, gHDX at 1:1,464502574
- The airdrop is automatic. Holders will not need to take any actions
- The date at which liquidity providers need to remove their liquidity position will be announced on our social media channels.
- The date for the HDN airdrop will be announced on our social media platforms.
To stay updated or ask any questions you have: Join us on Discord and follow us on Twitter to stay up-to-date with our latest news and developments.
Make sure to check out our website: https://hydranet.ai
