Community Update 2020–10–06

Hello StakeHODL’ers,

We are proud to announce that the smart contract is now beginning the last phase, the final formal audit. We expect between 7–10 days before trade resumes. A formal date will be announced as soon as it becomes apparent.

The core technical team has not stopped a single moment. They have worked nights and weekends to get this done. On behalf of all stakeHODL’ers, we thank you.

Furthermore, the new white paper v2 is almost ready. It is in review with legal teams (these things can take a little time, so please be patient). This is an essential factor in the foundation opening process.

The timeframe for opening the foundation is hard to estimate as the legal and regulatory requirements, such as the DLT license, are complex and time-consuming.

The dex is coming!

Boy, do we have upgrades. Here is a taste of what is to come.

Stabletoken

The new “HODLT” stable token will now convert for US$1.00 of HODLC instead of 1:1. As before, the smart contract will always buy back stabletokens. The conversion rate is always one (1) stabletoken for US$1.00 of HODLC.

The stabletoken does not grow in value nor yield distribution to its owner. However, the commodity does! To participate in the savings collective, the participant must convert stabletokens back into the commodity.

To be very clear, HODLT does not benefit from the automatic value increase, nor does it benefit from the daily value increase, nor does it benefit from any redistribution. Wait, there’s more than just the Ether redistribution from the reserve? Read on, my friend…

For example:

Alice decides to send US$5000 worth of HODLC to Bob.

HODLC’s value is US$1.30.

Alice converts 3,846.161538453846 HODLC for 5000 stabletoken (HODLT) worth US$5000 and sends it to Bob.

Bob sells the stabletoken (HODLT) through an exchange.

Chris buys 5000 stabletokens (HODLT) from an exchange and is curious about HODLC.

Chris chooses to convert these HODLTs (stabletokens) back into commodity (HODLC).

HODLC’s value is now at US$1.40.

Chris converts 5000 stabletoken to 3,571.428571428571 HODLC worth US$5000

Note that there is a difference between 3,846.161538453846 and 3,571.428571428571.

This is called the surplus. Each and every stabletoken in circulation yields HODLC as the number needed to buy back the stable token in circulation lessens with each passing day/transaction. This needs to be redistributed to the participants, as the core project philosophy states.

Distribution

The distribution algorithm has been upgraded. The distribution algorithm manages that redistribution of Ether and HODLC to the stakeHODL’ers. Don’t you love a good algorithm?

The asset to redistribute comes from two sources:

• Sales made from the reserve;
• Surplus of HODLC from the current number of stabletokens in circulation.

In the legacy versions, the redistribution was done using a pseudo-random algorithm that would choose award participants every time there was a buy from the reserve. This redistribution was limited to a maximum of US$250 worth of Ether at any given award. That means that if there were US$300 worth of Ether, the first winner would win US$250 of Ether, and the next would win the remaining US$50. This was an intelligent way of resolving the challenges of redistributing any asset that would otherwise remain in the smart contract.

Our dedicated ninjas and wizards (technical team — please don’t be disappointed that we don’t have an actual Harry Potter wizard, okay?) found a way to solve this challenge elegantly by redistributing the asset to all stakeHODL’ers that currently own HODLC.

The distribution is proportional to the number of commodities owned, which solves the complex logic needed to prevent sybil attacks (opening multiple wallets to win more) and other forms of cheating in an egalitarian and code efficient manner.

The smart contract will calculate each month the amount of assets that need to be redistributed to holders. The participants will be able to see the amount of awards that should be coming their way on the website.

Each award must be claimed by the user, one at a time, using the new claim button. This will transfer the asset owed (Ether and HODLC) to the participant’s address in the smart contract.

This action will also clean unnecessary data (zeroed out) in the smart contract itself, thus participating in a collective house cleaning process and earning an award for doing so!

From now on, every stakeHODL’er will see the redistribution process and interact with it.

Minor changes

The number of decimals for the HODLC and the stabletoken will be 18 decimal places. This will make for cleaner code structure and less loss of precision.

HODLC and HODLT will have a new symbol naming convention reflecting the multilateral and ledger-agnostic nature of the asset in the roadmap ahead.

New HODLC symbol = HCETHUSD

New stabletoken symbol = HTETHUSD

Let’s break that down for you:

• H stands for HODLCommodity project.
• C or T refers to the commodity or stabletoken counterpart.
• ETH refers to the native token of the first ledger to host HODLCommodity.
• USD refers to the fiat currency used to measure the value of the commodity asset.

Thus, HCETHUSD = H + C + ETH + USD.

After trade resumes, we will expand on the road(map) ahead (see what I did there? so clever!) and release the new white paper that will explain everything! Maybe not everything. We don’t have a chemistry section in there, and we still can’t tell you who killed Kennedy. We were sworn to secrecy.