HYDRA Main Distribution Event -Plan, Details & Preliminary Terms
As already mentioned in the brief post containing the pre-release infographic published on Nov 27, HYDRA is set to have a unique main distribution event in which its circulating supply to be distributed to eligible LOC owners over a period of 50 weeks. This comes as a result of the project being funded through the LockTrip crowdfunding as well as being researched, designed, built and tested by the LockTrip operative and management team.
The result is remarkable as HYDRA has already proven itself as extremely efficient in growing as node infrastructure in addition to being sustainable as an economy that enables scalability and stability for dAPPS to build on.
Several major goals were defined in the HYDRA pre-launch vote. Our team had executed a plan that managed to yield the following key milestones as achievements:
- HYDRA had been launched in a pre-release phase with 100% of functionality enabled, where the node infrastructure is supported in a centralized way. At the beginning the % of the company core nodes had 100% network weight, now gradually going down (currently at approximately ~75%).
- LOC swap from ERC20 to HRC20 had been initiated with close to 5M LOC already being swapped smoothly with zero incidents and steadily rising
- All peripheral components of HYDRA had been launched for both testnet and mainnet: web-wallet, faucet, and blockchain explorer
- Fully functional and stable clients for 7 different OS distributions have been released: Linux 64, Linux ARM(Raspberry), OSX, Ubuntu (18.04 and 20.04), Windows (32 and 64))
- A detailed documentation info site had been launched covering all technical and economic aspects of the technology in addition to key user-friendly guides that would enable average users to deploy their own secured environment
- In the meantime, we also effectively neutralized the hacker who stole 770,000 LOC as part of the popular Kucoin Hack. This action on its own managed to contain the stolen funds and disable any potential disruption that the hacker could have caused on the LockTrip ecosystem as a whole.
- Some of the most popular exchanges in the world had recognized HYDRA as a technology worthy of being integrated into their systems
- HYDRA Chain has already reached a significant 51% protection with the existing pre-release supply and community participation
With this being said, the pre-release phase of HYDRA has been successful as all major objectives have been completed (with some even surpassing initial expectations).
Based on these events, we can move on with the plan and now start planning on the next step which is the HYDRA main distribution event.
It is essential to read this post very carefully, as it is the official post that contains all preliminary details of the upcoming distribution plan.
A coin distribution event is a serious event and it has multiple implications. Ranging from technical, economic, security, legal, and compliance. It is an event of significant scale during which the company legally interacts with multiple individuals. Although HYDRA is not a directly crowdfunded project, nevertheless, it still has a significant interpretation from a regulatory perspective and therefore mandates a very careful approach.
Our team spent the last 3 months working relentlessly on all of these topics making sure all details of the distribution event are well-thought and would serve their main purpose -> to bring innovation and sustainability to the industry while not putting any risk on the existing operation.
Here are the official terms of the main distribution event:
- HYDRA will be airdropped on a 1:0.65 basis to eligible HRC20 LOC owners in an effort to provide utility and supply that would fuel innovation.
2. A fixed Airdrop of 18,585,932 HYDRA will be executed over a tentative period of 350 days. The initial plan being for 50 consecutive snapshots, each one representing 1.3% of the total quantity and a tentative timeline of approximately 7 days per 1 snapshot
3. The actual time for each snapshot can vary and could be extended if necessary (in case of technical problems, force majeure, and/or any other significant reasons). In case such extensions emerge, the overall distribution plan will not be affected as each snapshot will contain the corresponding fixed HYDRA amount and the plan will move forward until the full 1:0.65 ratio is distributed. If for any reason the number of snapshots is adjusted and/or modified, this will not have an impact on the total quantity as a 1:0.65 ratio will be upheld in all scenarios. For instance if instead of 50 snapshots of 1.3% each, the plan is modified to 25 snapshots, then each of the 25 snapshots will cover a 2.6% distribution, thus yielding the exact same final net rate within the same tentative deadline.
4.The distribution of each snapshot will be made within 1 week from the moment the snapshot is taken. This means that there will be an approximate 1 week lag between snapshot and execution. This again is a tentative timeline as the nature of blockchain does not guarantee a perfect environment for transmitting thousands of transactions. There could be corner case scenarios of block forks, connectivity problems, and/or infrastructure outages that could mandate a re-execution of a given distribution. Each snapshot will be communicated publicly for maximum transparency.
5. Users will need to fill a registration form in which they will submit their HRC20 LOC wallet, and complete a brief KYC procedure to verify their identity, country of residency, and accept an agreement containing the terms and conditions of the airdrop. This comes as a regulatory requirement that mandates LockTrip to be compliant with established anti-money laundering (AML) policies and will also ensure the transactions are legally formalized. The KYC will be similar to what exchanges apply, so it should not come as something too different than the already existing and well-established industry practices. The whole process will be a one-time step and will take no more than 10–15 minutes to complete. Once completed, there will be no other steps necessary for the users. All submissions will be processed within 24 hours from the moment of application submission.
6. Each snapshot will be distributed to the swapped LOC HRC20 only that the user has provided during his/her airdrop enrollment. ERC20 LOC Tokens that are unswapped won’t be eligible to receive any airdrop at the time of making a particular snapshot and will miss on the specific distribution and the corresponding amounts will be burned.
7. Since the nature of the airdrop is entirely voluntary, if anyone is not happy with the terms and/or does not show any interest in participating in the HYDRA main distribution event, then his HYDRA share will be burned.
8. Registration will be a one-time step. Once a user has enrolled, passed the KYC, and has signed the terms of the airdrop, our system will automatically include the wallet in the weekly snapshots and will distribute a 0.013 HYDRA per each LOC per snapshot (in the context of 50 snapshots x 1.3% each plan) for the duration of the campaign.
9. There can only be one wallet per enrolled user. And the system will determine the amount according to the LOC balance at the time of the snapshot. The snapshots will be taken on a random basis, no sooner than 5 days apart from each other.
10. The start of the distribution will be the last week of March under the condition that at least 30 days have passed since the moment HitBTC has enabled LOC withdrawals. This will ensure a minimum of 30 days window for 100% of our members to signup and enroll for the airdrop.
11. Exchanges will NOT be supported for the airdrop, since they act as consolidated pools of all users’ funds and it is impossible to perform verification on an individual level
12. Any unclaimed HYDRA will be burned with the amount scheduled for burning to be executed together with the particular snapshot distribution. For example, the default 1.3% will carry a fixed 241,718.64 HYDRA supply. If the claimed amount for that particular snapshot is 100,000 HYDRA, the remaining 141,718.64 HYDRA will be destroyed as part of the snapshot distribution. Each snapshot will be treated as an individual event and there will be no possibility to rollover any unclaimed previous amounts.
13. The company will bind to a maximum ceiling of 35% HYDRA as a proportion to the total supply at the time of conclusion of the event. This means that as the final snapshot is distributed if there is any excess amount exceeding 35% of the total circulating supply owned by the company core nodes, this excess will be burned.
14. NB! Based on an extensively argumented position from our legal/compliance team (internal audit document being 30 pages long), we will not be supporting the HYDRA airdrop event for USA Citizens. This comes as a result of multiple factors: SEC’s specific approach on creating a precedent for classifying airdrops as a form of “investment contract” according to its official guidelines for determining whether a digital asset classifies as a security ( https://www.sec.gov/corpfin/framework-investment-contract-analysis-digital-assets ). Unfortunately, in the provided framework and based on multiple actions that had been undertaken against other projects, SEC is paying a high level of attention to airdrops as distribution events. Here is the specific piece of text as part of the most recent statement:
“…further, the lack of monetary consideration for digital assets, such as those distributed via a so-called “air drop,” does not mean that the investment of money prong is not satisfied; therefore, an airdrop may constitute a sale or distribution of securities. In a so-called “airdrop,” a digital asset is distributed to holders of another digital asset, typically to promote its circulation. “
We believe that such interpretation of cryptocurrencies does not correspond to the nature of decentralized technology that is being developed in 2021 and in some cases handicaps innovation. It is also significantly contradicted by the legislative practices that have been and are being currently implemented in the EU.
However, despite the fact that our team strongly disagrees with the extremely conservative approach that SEC makes on digital assets (Howey test is based on a court case dating from May 2, 1946), LockTrip has no other choice but to take a firm stance of continuing its strategy of not engaging with US persons in the context of token distribution events. The same strategy was undertaken also with the LOC crowdfunding in 2017 and will continue to remain in force indefinitely.
This is the only way for the HYDRA project, technology, and its community to move forward and at the same time be protected from potential regulatory risks that could have a significantly negative impact on the future of the project.
Based on the above, we will take all necessary steps to prevent any delivery, air-drop, or another type of supply of HYDRA consented by LockTrip to US nationals. We hereby forewarn that any consequential resale of HYDRA to US citizens conducted by any holder whatsoever shall be entirely on the account and on behalf of this Holder and at his/her own risk. LockTrip provides no consent whatsoever in regards to such resales and also takes no responsibility for any such actions.