♻️$REWARD
NO Staking, NO Claiming, Just #HODL! Staking-less passive income stream via $REWARD
The #HODL & Earn $REWARD system was another feature created based on the community’s feedback in the early days. Investors were looking for guaranteed passive income from their NFT holdings. As always, we listened and that's how $REWARD token was born.
Its main purpose is fuel up the HODL Token Club ecosystem and ensure a reliable passive income stream.
$REWARD token will bond, utilise and complement other value proposition products.
We will use Friday's #GiveawayWeekday snapshot and distribute $REWARD to all eligible wallets.
$REWARD token will be distributed to all GH-NFT owners as an airdrop. There is only one condition: the NFT needs to be in your wallet at the time of snapshot. That's all!
Bootstrapping will follow a pre-established schedule starting with week 1 (WK 1) on 7th Oct 2022:
WK1-4 --> 100 $REWARD / NFT
WK5-8 --> 90 $REWARD / NFT
WK9-10 --> 80 $REWARD / NFT
.... and so on, until we reach 10 $REWARD/GH-NFT/week. Afterwards we will permanently stay on that level.
Utility
It's not always easy to add utility to a token by making it valuable, attractive to investors, useful, yet relatively scarce to ensure balance between supply and demand. That's why we decided to assign $REWARD token with a few properties like "mint" and "burn". Thanks to these properties, we will be able to only issue tokens, when we need them. Thus supply is unlimited and by introducing a burning mechanism we will balance the total supply, aiming to offset issuance token to make them deflationary over time.
$REWARD will be very useful and has tons of use-cases to maximise return on the investment by participating in the HODL Token Club ecosystem.
Main purpose
To enable these features, the token needs to be priced first. This is done by listing it on an exchange, as tokens without any value aren't really attractive to the investors. Hence, $REWARD token will be listed on the decentralised and permission-less exchange (DEX) called “OneDex”.
With listings on any DEX, there will be the need for the community to join and participate in providing liquidity. Investors who decide to participate in Liquidity Pools (LP) will be able to farm $REWARD tokens with high Annual Percentage Rate (APR).
At the point of token issuance:
• 1,500,000 $REWARDs --> Treasury
• 1,500,000 $REWARDs --> Founder
• Max Supply --> Unlimited
• Current Supply --> here
Before jumping into Decentralised Finance (DeFi) on OneDex, let's look at the issuance and burning mechanism first. Issuance
• 5.2 Million a year (excluding Bootstrapping) --> #HODL & Earn $REWARD
• 60 Million* --> HODL/EGLD LP Farming
• 30 Million* --> REWARD/HODL LP Farming
• 10 Million* --> REWARD Single Asset Staking Farm
*In the first year after launch. Afterwards issuance will be reduced by 50% per year
Providing liquidity on OneDex will be very beneficial, especially in the beginning. E.g. in the first year DeFi users will benefit from the issuance of 100 Million $REWARD (REWARD/HODL and HODL/EGLD LP + $REWARD single Asset Staking) vs. 5.2 Million $REWARD via the #HODL & Earn $REWARD system.
HODL Token Club itself will be actively participating in $REWARD farming. All farmed $REWARD tokens will be staked in the $REWARD Single Asset Staking Farm and earned $REWARD will be re-staked. This will be done for the first full year of farming. After that period, we will recycle farmed $REWARD tokens and use them for Y2 farming allocation, thus reducing planned issuance and make the model less inflationary, benefiting $REWARD holders long term.
Burning $REWARD tokens acquired through GH swaps to HF-NFT and future collections mintable with $REWARD:
75% of $REWARD will be burned
20% will supply the HODL Token Club Treasury used for marketing, partnerships and payment for services
5% will benefit the Founder
To understand the possible impact of burning let’s use an example:
1 HF-NFT = 50 GH-NFTs incl. 3 $HODL trait GH
80 HF-NFTs will be available for GH-NFTs swaps OR via lottery.
--> With that, we will acquire 4,000 GH-NFTs, which will be loaded into our Distributor Smart Contract (SC) and be re-mintable with $REWARD token.
75% of $REWARD earned from re-minting will be burned. This will make $REWARD scarce over time benefiting long term hodlers.
Let's assume for now that minting price is 10,000 $REWARD/NFT. Via this mechanism we will be able to acquire 40 Million $REWARD tokens and burn 30 Million (that's 30% of annual issuance in year 1!). Over time new interesting NFT collections will be purchasable via $REWARD token as well as limited supply HODL Token Club merch!
Minting with $REWARD tokens on FrameIt is from the Smart Contract that contains 2nd Hand NFT's (the ones donated to obtain HF-NFT), therefore in case you mint $HODL attribute GH-NFT you won't be eligible for $HODL token airdrop as it was already claimed by original minter.
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