The proposal defines overall HunterDAO tokenomic model, veTokenomic parameters and describes the value capture process.

Background DexHunter isn’t traditional Saas, and $Hunter token isn’t a traditional protocol governance token. Instead, we want to build first of a kind, genuinely community-owned Product DAO that would develop and deliver great tools for modern web3 traders.

Traditional Saas business cash flow comes from monthly recurring subscriptions that fuel product development and marketing spending. What if we can replace recurring subscriptions with ve-Tokenomic flywheel and DAO-owned liquidity?

Proposal ve-Tokenomic model allows us to create a long-term alignment between token holders, community, DAO, and the product. The core component of any good tokenomic is a balance between token supply (sell pressure) and token demand (buy pressure). DAO governed with vote escrowed token and controlling own liquidity can achieve perfect balance between supply and demand.

Subscription-based monetization for DexHunter product always was a part of the plan. This is how it will work with DAO and ve-tokenomic. When users purchase paid subscription plan for DexHunter analytics platform, under the hood smart contract purchases $Hunter from the $Hunter/$ETH pool, and transfer $Hunter tokens to a vested time lock safebox in exchange for platform access. This creates constant and predictable cashflow for HunterDAO and $veHunter tokenholders. DAO controls how vesting safebox splits the profits from DexHunter between DAO treasury and $veHunter tokenholders who earn a share of the revenue that the platform pays out.

This system is showcased in the graphic below.

https://gov.dex.Hunter/uploads/default/original/2X/d/d53b98c59d0cbff9595bd86f6a3996b4c205cfe2.png

Participating in HunterDAO governance requires that an account have a balance of vote-escrowed Hunter ($veHunter). $veHunter is a non-transferable ERC20 implementation, used to determine each account’s voting power.

$veHunter is a token that is issued upon the locking of $Hunter tokens in vote escrow smart contract. The amount of $veHunter received in exchange for $Hunter tokens is dependent on the lock period. The longer $Hunter tokens are locked for, the more $veHunter received in exchange. A user’s veHunter balance decays linearly as the remaining time until the Hunter unlock decreases.

veTokenomics parameters:

The maximum locking period: 4 years The minimum locking period: 3 months The locking weight: 4 years - 1:1 $veHunter/$Hunter veHunter token weight decreasing function: Linear Token type: non-transferable ERC20 For example, a balance of 4000 Hunter locked for one year provides the same amount of veHunter as 2000 Hunter locked for two years, or 1000 Hunter locked for four years. The voting power is equal to the amount of veHunter on a user’s balance.

Specifications Initial Product parameters and values such as monthly subscription cost, trading pair address, profit share ratio, etc, will be defined in a different proposal.

Pros veTokenomics provides a great balance of supply and demand and aligns with the proposed value capture approach. DAO controls decision making on supply and demand and could find a balance DAO-owned liquidity aims to maximize liquidity and improve capital efficiency and is a revenue-generating asset on its own. Token holders have the ability to directly accrue their share of economic benefits. Cons A different tokenomics model maybe also applicable but it requires additional research. Poll https://gov.dex.Hunter/t/proposal-adopting-vetokenomic/8573

The proposal defines overall HunterDAO tokenomic model, veTokenomic parameters and describes the value capture process.

Background DexHunter isn’t traditional Saas, and $Hunter token isn’t a traditional protocol governance token. Instead, we want to build first of a kind, genuinely community-owned Product DAO that would develop and deliver great tools for modern web3 traders.

Traditional Saas business cash flow comes from monthly recurring subscriptions that fuel product development and marketing spending. What if we can replace recurring subscriptions with ve-Tokenomic flywheel and DAO-owned liquidity?

Proposal ve-Tokenomic model allows us to create a long-term alignment between token holders, community, DAO, and the product. The core component of any good tokenomic is a balance between token supply (sell pressure) and token demand (buy pressure). DAO governed with vote escrowed token and controlling own liquidity can achieve perfect balance between supply and demand.

Subscription-based monetization for DexHunter product always was a part of the plan. This is how it will work with DAO and ve-tokenomic. When users purchase paid subscription plan for DexHunter analytics platform, under the hood smart contract purchases $Hunter from the $Hunter/$ETH pool, and transfer $Hunter tokens to a vested time lock safebox in exchange for platform access. This creates constant and predictable cashflow for HunterDAO and $veHunter tokenholders. DAO controls how vesting safebox splits the profits from DexHunter between DAO treasury and $veHunter tokenholders who earn a share of the revenue that the platform pays out.

This system is showcased in the graphic below.

https://gov.dex.Hunter/uploads/default/original/2X/d/d53b98c59d0cbff9595bd86f6a3996b4c205cfe2.png

Participating in HunterDAO governance requires that an account have a balance of vote-escrowed Hunter ($veHunter). $veHunter is a non-transferable ERC20 implementation, used to determine each account’s voting power.

$veHunter is a token that is issued upon the locking of $Hunter tokens in vote escrow smart contract. The amount of $veHunter received in exchange for $Hunter tokens is dependent on the lock period. The longer $Hunter tokens are locked for, the more $veHunter received in exchange. A user’s veHunter balance decays linearly as the remaining time until the Hunter unlock decreases.

veTokenomics parameters:

The maximum locking period: 4 years The minimum locking period: 3 months The locking weight: 4 years - 1:1 $veHunter/$Hunter veHunter token weight decreasing function: Linear Token type: non-transferable ERC20 For example, a balance of 4000 Hunter locked for one year provides the same amount of veHunter as 2000 Hunter locked for two years, or 1000 Hunter locked for four years. The voting power is equal to the amount of veHunter on a user’s balance.

Specifications Initial Product parameters and values such as monthly subscription cost, trading pair address, profit share ratio, etc, will be defined in a different proposal.

Pros veTokenomics provides a great balance of supply and demand and aligns with the proposed value capture approach. DAO controls decision making on supply and demand and could find a balance DAO-owned liquidity aims to maximize liquidity and improve capital efficiency and is a revenue-generating asset on its own. Token holders have the ability to directly accrue their share of economic benefits. Cons A different tokenomics model maybe also applicable but it requires additional research. Poll https://gov.dex.Hunter/t/proposal-adopting-vetokenomic/8573