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Creating Value
The information on this page and all other pages owned by, operated by, or related to Hector Network are for educational purposes only and do not constitute any kind of advice. Please carefully read our Disclaimer page first.
Our treasury is a multi-signature protected safe which holds the majority of the stablecoins and volatile assets owned by Hector Network. At the time of publishing the treasury contained nearly $80 Million (USD) in assets, highlighting that the team has successfully navigated the massive downward trending markets of early 2022 by successfully retaining value. The health of these funds is carefully monitored by the team.
Certain features within the Hector Ecosystem like Hector DEX and Hector Institute generate trading fees from their use. These fees will in part go to the treasury.
Any returns produced from investments made with treasury funds go back to the treasury. More information about treasury allocations can be found on the Governance page. Furthermore, please consult HIP-033 for a better understanding of the current direction Hector Network and its Community have chosen concerning treasury investments.
Bonding (availability subject to market conditions)
Bonding, while not currently available due to market conditions, is a key way that Hector Network built its treasury liquidity in the early days of the project. Bonding works by offering users HEC at a discounted rate in exchange for specific tokens the project is looking to acquire. Over a predetermined time the bonding will vest, giving the user HEC.
Whilst typically investment allocations remain in the treasury, it’s relevant to list them as a “temporary outflow” since they are being converted from stablecoins (risk-free) to other coins (volatile).
In periodical intervals, Hector Network buys back HEC tokens from the market. This is mostly done with stablecoin funds or LP tokens from the treasury.
Sometimes the HEC is burnt (removed permanently from circulation) after this. Burning tokens decreased the circulating supply which improves protocol health over all.
If an LP is used to execute a buyback and burn the LP tokens are split into the components of HEC and a stablecoin. Then the HEC tokens are burned, and the stablecoins are used to buy more HEC from the market which is also burned.
Buybacks can support the project during severe downward trending markets, and help users feel a sense of stability from the project.
The expansion wallet is the active development wallet for the project. Where the Treasury is meant for the long-term storage of coins, the Expansion Wallet is used for expenses like marketing funds, development funds, freelancers, team and contractor wages and so on.
A percentage of the profits and fees from subprojects are allocated to the expansion wallet.
- Hector Institute
- Hector DEX
- Hector Merch (Note: 50% of profits from Hector Merch will always go to a charity chosen by the community)
- Hector NFT: Mythos Collection
- Hector Market: Atlantica
The Expansion Wallet outflows consist of:
- Buyback and burn funds
- Marketing funds
- Development funds
- Wages
Last modified 4mo ago