HodlerToken current & future

HodlerToken was designed as an experiment that aimed to bring new light to the modern PnD market and serve as a reward machine to incentivize people to hodl their tokens by providing different rewards.
Although, source code is quite simple and straightforward, and the smart contract was tested many times on Ropsten for different use-cases, there’s one stupid (and simple) case we didn’t take into account. It’s gas price. Because every transfer transaction not only transfers 99% of the amount and then burns the remaining 1% it also triggers inflationary action that rewards other hodlers with 1 newly minted token which was designed on purpose as transaction based. It means that each swap or transfer leads to a potentially enormous amount of sequential transactions that the seller or buyer actually pays for.

Maybe with the fully functional ETH 2.0 it wouldn’t be a problem, but nowadays it creates potential risks for all users. By the time of this article, there are around 50 hodlers and meantime swap of any other token costs around 8$, HODL swap costs ~ 7 times more. Image what will be a price when there will be 2000 holders (~ 1990 transactions under the hood for each swap).

Solution

Since we don’t want to abandon this project but move it further to new highs, we come up with a new smart contract without old flaws (which is almost complete and already under testing and will be opened for review to the community). New contract tokens will be airdropped to all hodlers according to the taken snapshot.

JUST HODL (or jHODL) - new token with (we would want to write here “same”, but here’s where fun begins) new mechanics, which community will vote for. Community in the TG come up with a few good ideas, which we also considered, but didn’t realize. There are two mechanics we consider to chose for new token (all transactionless) as well as the current one:

1. Current version, but just transactionless. All tokens are pre-minted, initial supply is N tokens, rest of the tokens are reserved for hodl inflationary rewards.
2. Current version but minting 0.1 (currently 1) token per thx. All tokens are pre-minted, initial supply is N tokens, rest of the tokens are reserved for hodl inflationary rewards.
3. New version where 1% of each transaction isn’t being burned, but distributed among the hodlers in the same way as currently. Similarly all tokens are pre-minted, initial supply is N tokens, rest of the tokens are reserved for future rewards (staking, LP, etc).

Alternative

We leave everything as it is, continue working on the roadmap & website and get back to this question when will be really hot.

Decision

There are actually two decisions which community may be asked to make:

1. New token (solution) or current version (alternative).
2. If the majority votes for the new token, then we will need to choose a new mechanic.

The initial supply in case of a new token according to the predefined block (11023766) is 233.975442613934089423. Snapshot has been already made.

Hodlers, let’s not let this mistake lead to another one and make this project one more abandoned PnD. TG votes will be opened soon. Please vote for the future of hodling.

Telegram official:
https://t.me/hodler_token