HYDRA Distribution | Introducing Cooldown for LOC Balance Changes
Dear Community!
We just launched the HYDRA Distribution whitelisting process a few days ago. Since then, more than 200 holders have successfully whitelisted for the distribution! Make sure to join the whitelist, if you have not done already:
Three weeks ago we also introduced a “Network Contribution Formula”, which ensures that the Hydra network grows healthily and proactively stops sending more supply to participants, who liquidate too many HYDRA at once. The details can be read below:
The network contribution formula was very well received by the community, as it allows for a smooth supply transition period without giving speculators the chance to do their thing.
Tackling one additional opportunity for Bad Actors
However, there is currently one potential vulnerability which we were able to identify by testing the model. Bad actors could potentially create multiple KYC submissions (for example through each family member) and going through the following scheme:
- Receive one or multiple weeks of HYDRA
- Sell all HYDRA
- Move the LOC to a new wallet and whitelist it through a new KYC by a different family member and/or acquaintance
This way it would be possible to bypass the minimum HYDRA requirement, even though it is strictly against the KYC agreement signed.
The scheme takes advantage of the flexibility we offer to our community, which is the ability to join the distribution event even after it started. The easiest way to prevent abuse would be to simply not allow for new whitelisting entries or changes in balances after the first week of distribution.
However, we believe that this is an important pillar of the event and that it needs to be protected. Hence we came up with a more targeted solution.
Introducing a Cooldown Period for LOC Balance Changes -> to be activated after the airdrop begins
We are herewith introducing a cooldown period of 4 weeks (snapshots) for newly added LOC balances that take place after the airdrop begins. The cooldown applies on all balance increases, be it because of a newly whitelisted wallet or an increase of existing balances.
Example 1 (New Whitelist)
As you can see, new entries (joining after the first snapshot) need to skip 4 snapshots for the balance to start reflecting.
The HYDRA that will be impacted by the cooldown will be burnt. The reasoning behind this is to disincentivize users to do multi-accounting and to ensure the network has a smooth and healthy launch.
Example 2 (Increase in Existing Balance)
For an increase of existing LOC balances, the same cooldown rule applies. However, only the newly added LOC will be subject to a cooldown. Previously held LOC continue to yield their share of the distribution without any impact.
The formula to reflect this rule is simple. Instead of taking the weekly snapshot balance, the lowest LOC balance for the current and past four weekly snapshots will be counted. This means that contrary to increases, balance reductions reflect immediately with the following week.
Since the corresponding HYDRA balances can not be claimed during the cooldown period, they are automatically scheduled for burning.
The cooldown only applies to balances added after the first snapshot (scheduled for March 30).
Note: The introduction of this cost mechanism does not change our policy for bad actors. According to the distribution agreement, we reserve the right to disqualify participants, whenever a rule vialotion is detected.
→ Join the Hydra Community
HYDRA is a proof-of-stake, inflationary blockchain that tackles some of the most profound and challenging economic issues with existing blockchain economies. Some of the more notable features:
🔥 100% Burn of all Transaction Fees
💎 50% Royalty on Gas for Smart Contract Creators → More Info
📌 Fixed Coin Transaction Fees of $0.20 → More Info
📌 Fixed Token Transaction Fees of $0.50 → More Info
💰 20% Minimum APR Staking Income → Staking Calculator
📈 Up to 540 TPS Elastic Capacity
🔏 EVM Compatible Smart Contract Platform
⚙️ Wallet-Level Scalability → More Info
🗳 Unique Decentralized Governance Protocol
⚖️ 18.5M Starting Supply with unique approach for handling the deflation tipping point. → More Info
