HBC Token model 1.0 has progressed in the past 10 months since its launch. HBTC has accumulated massive data and many valuable operational experience and knowledge to fuse the token model to the platform. Therefore, it’s time to modify the token model before the release of our new trading system and public blockchain with cross-chain Layer-2 capabilities.
Here is a brief summary. In the past 10 months, the number of registered users on the platform has increased over 1 million and a total of 6,912,040 USDT income that was generated from the business was used for HBC buyback. The price of HBC represents the core value of the token model. The initial value of HBC was 1.24 USDT on 17 April 2020 but it has appreciated to its peak at 5.26 USDT on 24 May 2020. Since then, the price of HBC has maintained at around 4 USDT. HBC was listed on well-known trading platforms such as Huobi, Jubi, Boboo and BKEX, becoming an asset with market support and good liquidity. The profitability of holding HBC for the 10-month period since April was between 3.2 to 4.2 fold. Compared to other mainstream crypto assets in the bull market, the performance is rather average. However, it has been a significant opportunity for us to serve thousands of users with the lack of new products and services based on the feedback and data we have collected. Therefore, we believe that the HBC token model has made a monumental achievement over the past 10 months and has given us a clear direction for our future.
During the past 10 months, there were more than 1,000 users who joined the HBTC Captain's scheme. Regardless of the many Captains who have opted-out of the scheme, HBTC managed to maintain 500 Captains who were willing to put in extra effort to contribute to the business. We would like to express our sincere thanks to all our Captains for the contributions they made to HBTC Platform.
In summary, we have a deeper understanding of the current status of the HBC Token model. The biggest advantage was that it embedded 100% of the platform revenue to HBC to reward Captains with excellent performance. Yet there were some shortcomings which are listed below:
1）Deflation Rate: 80% of the tokens from buyback ended in the secondary market after rewards had been issued to holders and investors. Lockup tokens from investors and the team also flowed to the secondary market after being unlocked. This could have periodically affected the price of the token and market confidence.
2）Capital Utilization: there were certain secondary market arbitrage opportunities for daily buyback which affected the efficiency of the use of buyback funds which made it impossible to allocate the buyback funds to break through the resistance line of the price. The last buyback contributed to the price of HBC is a good example of the high utilization rate of repurchase funds.
3）Lack of Marketing: when all the revenue was used for buyback, HBTC could only depend on the network resources of our Captains which resulted in insufficient diversity of traffic sources for platform users thus affecting the user's growth.
4）High Threshold to Apply for HBTC Captain: the high threshold from Captains and the stringent rules were difficult for users to understand. It took up a lot of time to communicate to users coupled with the tedious review processes made it difficult for the project to scale. The increase in HBC price was another burden to captains that seriously affected the growth of captains.
In terms of products and technology, the liquidity and market depth of our mainstream currencies for spot and OTC trading were comparable to the top exchanges in the past 10 months. The security and stability performance of our spot trading system was excellent. HBTC maintained zero-incident record throughout the year 2020 which was better than the majority of the leading platforms. However, the liquidity of the leverage tokens and the contract is still a challenging issue to be improved. Come March, HBTC will deliver a qualitative improvement leap in the release of its new products.
These major issues lead to the bottleneck of business growth. Just like Sun Tzu in his “Art of War: Therefore, just as water retains no constant shape, so in warfare there are no constant conditions”. We must make changes to adapt to the constantly changing market.
Therefore, we have to address some of these market and operational issues we are facing. The platform token model will be our priority before the release of our next-generation trading system and public blockchain cross-chain Layer-2. To facilitate the platform development rather than restrict it, we plan to launch version 2.0 for our HBC token model which will preserve the effective features and make an improvement to the issues in version 1.0. The HBC token model has completed its mission and has enabled the platform to kick-start from 0 to 1. We believe that the new HBC token model 2.0 will enable the platform to achieve a higher business growth from 1 to 10 or even 1 to 100.
According to the rules of community governance for HBC Token model, any adjustments made to HBC Token model will require a consensus from holders of HBC token including HBTC Captains. HBTC will launch a community vote to improve the HBC token model to 2.0. Users who hold enough HBC tokens will qualify to vote. The new "HBC Token Model 2.0" will be implemented if consensus reaches more than 51% and will take effect on 10 February 2021. On the other hand, if the majority disagree with the upgrade, model 1.0 will remain.
Holders of HBC who are not satisfied with the vote result can choose to participate in the "HBTC Buyback HBC Token at Initial Purchase Price +6% Bonus Offer" to release your HBC holding to HBTC. HBTC will buyback all your remaining HBC Tokens at the initial cost price and offer an additional 6% bonus. This offer is only applicable to users who have purchased HBC Tokens from HBTC Exchange before 8:00 on January 29, 2021 (UTC+8). We do not wish to see the vote results affect the interests of HBC holders.
Upgrade HBC Token Model to 2.0
1. HBC buyback-to-burn and reward: to replace the daily 10X PE repurchase to quarterly buyback with 100% income from the HBTC exchange. HBTC will use 100% of its quarterly business income from the HBTC Exchange and Bluehelix Technology's buyback-to-burn mechanism. HBTC will conduct quarterly buyback of HBC in the secondary market on HBTC Exchange. All HBC tokens obtained from buyback will be allocated as follows:
(1.1) Token burn and deflation mechanism: 80% of HBC tokens obtained from buyback will be burnt;
(1.2) Captain's reward (lockup): 20% of the HBC will be locked and distributed to the Captain's reward account. The HBC in the reward account will be unlocked according to Captain's daily performance. The specific allocation will be 15% and is based on the quarterly performance of the Captain. The other 5% will be shared amongst Captains who qualify by maintaining his/her status with a quarterly performance of no less than 100 USDT;
(1.3) Rules to liquidate HBC reward: Captains can liquidate the HBC reward based on his/her daily performance. If a Captain is able to produce a daily performance of 1 USDT or its equivalent, he/she can liquidate the HBC reward equivalent to 1 USDT at the closing price of the day. The liquidated HBC will be in free circulation in the secondary market.
2. Unlock mechanism for HBC reserve from Bluehelix team and investors: remains in lockup until a consensus vote is initiated for internal buyback when the business can generate growth to a certain scale and price appreciation of HBC. If the vote is passed, the platform will use 10% to 20% of the quarterly profit to buyback the locked HBC, and then burn them in a like manner as for those repurchased from the secondary market.
The community can propose and vote to decide on an internal buyback. If the vote is passed, 10% to 20% of the profit will be used for HBC quarterly buyback from the HBC pool held by Bluehelix team and investors. The HBC tokens obtained from this buyback will be destroyed.
3. Rules for HBTC Captain's performance and statistics: rules remain unchanged. The performance are mainly in the following aspects:
(3.1) Income generated by the HBTC Captain on the HBTC exchange. Income performance = (transaction fee - commission/rebate);
(3.2) Income generated from direct/indirect referrals. Income performance = (transaction fee - commission/rebate);
(3.3) 5% of the quarterly performance from any invited Captain;
(3.4) Invite new users, complete KYC level 2 with both single deposit and trade volume of more than 1000 USDT, the Captain will receive 30 USDT in performance points;
(3.5) Invite new Captain. If an invited Captain is able to maintain his/her status for a quarter, the Captain(inviter) will receive 300 USDT in performance points;
(3.6) A Captain has an overriding of 20% from all his/her invitees and Captains;
(3.7) Feedback and suggestions adopted by HBTC, the Captain will receive 150 USDT in performance points.
4. Eligibility and Opt-out of HBTC Captain
Users who have completed KYC level 2 and hold more than 500 HBC in his/her HBTC account(balance-wallet) will automatically qualify to become a HBTC Captain. If a Captain holds less than 500 HBC in his/her HBTC account(balance-wallet), the Captain is deemed to have Opted-out from the Captain's scheme. The system will automatically remove his/her Captain status and all the HBC rewards that are in lockup will be destroyed.
5. Captain's Benefits
(5.1) Invitation Rebates: 40% overriding on the transaction fees from Spot Trading and 30% overriding on the transaction fees from Contracts Trading generated by the invited users and Captains;
(5.2) Trading Fee Discount: receive VIP 1 status on trading fees by default (kindly refer Fee Structure https://support.hbtc.co/hc/en-us/articles/360009274694);
(5.3) HBC Reward by Trading: 20% HBC airdrop from the quarterly buyback will be unlocked based on daily trades;
(5.4) HBC Mining Reward: HBC held in the HBTC account(balance-wallet) will receive a share of the block reward from nodes on HBTC Chain;
(5.5) VIP Service: Exclusive 1to1 customer service.
HBTC chooses to empower HBC with 100% of its business income which is a great benefit to all holders of HBC token. Whether they choose to trade on HBTC themselves or invite friends to trade, they are all contributing to the business growth of the platform and to the increase in value of the HBC they own. The benefit for being Captains is essentially a bonus reward. The price appreciation in HBC token is the key income source.
The HBTC Captain status should not be a burden to anyone. Therefore, there will be no additional duties required from the Captains. The new rules only require a Captain to hold a certain amount of HBC and that he/she contributes to the platform by trading or by inviting new users to trade on HBTC. Any feedback or suggestions to a particular issue will help to improve the value of the platform.
6. In HBC Token Model 2.0, all HBC rewards will be kept in lock-up and there will be no daily HBC repurchase and daily apply to unlock mechanism. Therefore, we have designed the following solutions for this matter:
(6.1) The current batch of HBC reward released to Captains is still in lock up: HBTC will conduct a buyback of this batch of HBC tokens based on a 5-day average price on HBC/USDT pair (starting from the first day of voting). HBC tokens obtained in this buyback will be sent for token burnt.
(6.2) HBC reward in lock-up: for every USDT performance(including points) contributed by the Captain, the system will automatically credit the 1 USDT worth of HBC to the Captain's account(balance-wallet). The same requirement as before, it is necessary to maintain the Captain status in-order to enjoy the HBC reward. If a Captain loses his/her Captain status due to insufficient HBC holding, the system will automatically forfeit all HBC rewards and send them for token burn.
HBTC reserves the final interpretation and execution right for this token model.
1. Only HBTC Captains are allowed to participate in the voting for HBC Token Model 2.0. The number of vote count is based on the number of HBC a Captain has in his/her account. 1 HBC = 1 Vote;
2. Each Captain is given a chance to vote;
3. Captains cannot change his/her vote after submitting a ballot;
4. Voting Period: 12:00, 1 February 2021 - 12:00, 8 February 2021 (UTC+8);
Cast Your Vote Now: https://www.hbtc.com/activity/vote/?id=6