It is proposed that the HIFI Token smart contract be deployed on Ethereum Mainnet with a token swap rate of 100 MFT per 1 HIFI. A new legal entity, Hifi DAO, be established and all relevant intellectual property, domains, and social accounts be transferred from Hifi Labs to HIFI DAO. The Hifi Protocol be deployed on Ethereum Mainnet and control assigned to HIFI DAO governance. Approve a new market in the Hifi Protocol beginning January 2023. And, Allocate 25M tokens (19.8% of new token supply) vesting linearly over two years to Hifi Labs.
After extensive testing, multiple audits, and several improvements, Hifi’s protocol is ready to go live on Ethereum mainnet. In addition to deploying the protocol on Ethereum mainnet several administrative items need to be addressed. This proposal is written to capture the technical changes being asked. Additional context outlining the thinking and strategy behind this proposal is found in an adjacent blog post, be sure you read it.
Sustainability, control, and ownership are the three major problems this proposal addresses. HIFI token holders need to control all material aspects of Hifi intellectual property, social and web properties, Hifi protocol, HIFI token, and Hifi governance. Hifi DAO needs the ability to allocate resources to cover its operating costs, growth strategy, and any future incentive programs.
Create Hifi DAO and empower HIFI token holders with ownership, control, and the ability to deploy resources. To accomplish this, Hifi Labs will deploy new governance smart contracts (forked from Compound’s Governor Bravo), a new HIFI ERC-20 token, supporting token swap smart contracts, and the latest version of the Hifi protocol on Ethereum Mainnet. Once deployed, HIFI token holders will control all aspects of these smart contracts. No one, including Hifi Labs, will have the ability to modify the contracts without Hifi DAO Governance approval.
In addition to the smart contract work above, Hifi Labs will transfer ownership of all Hifi-related social, web, and intellectual properties, along with any associated accounts to the newly created Hifi DAO legal entity.
Hifi Labs will enter into a two year contract with Hifi DAO with the specific focus of ensuring a smooth transition of responsibility to Hifi DAO and fueling growth of the Hifi protocol. The corresponding blog post goes into greater detail on this matter and it is highly recommended that you read it along side this proposal. Seriously, stop now and go read it.
Hifi Labs has been operating on funds raised privately during our token generation event back in 2017. Prudent resource allocation and profitable investments have allowed us to outlive our peers that launched during similar time periods. Going forward, however, new resources are necessary to fund a smooth transition of responsibility and pursue our outlined growth strategy.
For an understanding of the growth strategy, check out the recent blog posts that clearly outlines: Our Customer, Our Customer’s Biggest Problem, Our Solution, and Growth. Hifi Labs plans to take a two pronged approach centered in building NFT liquidity and playing an active role onboarding Real World Assets (RWAs) on chain and into Hifi’s Protocol.
MFT will be swapped for HIFI at a rate of 100 MFT to 1 HIFI. 100M HIFI Tokens will be redeemed by MFT token holders. As previously announced, 1.25M HIFI tokens will be airdropped to MFT holders who have participated in Governance votes, inclusive of this proposal. 25M HIFI tokens will be allocated to Hifi Labs, vesting linearly over 2 years. The total supply of HIFI will be 126.25M Tokens. The Hifi Tokenomics Lite Paper provides great high-level summary of all these changes.
Notably absent from this proposal is any sort of new token incentive or staking mechanism. This was a deliberate decision to push development of these important matters out into the open and more directly involve the broader community in the process. We look forward to sharing our best ideas with the community and participating as a part of Hifi DAO to decide together what’s best for Hifi. This proposal, however, does address the foundational changes that need to take place to allow for such mechanisms to be built. It presents token holders with a blank slate to build on top of.
This proposal is more than just a token swap and branding update. It’s a complete overhaul of our community. It’s a launch of the Hifi DAO, a shift in power to token holders, a clear defining of relationship with the core team, a pronounced line of accountability for how our community is structured, and a release of our codified smart contract based Governance to control both the protocol and token.
Hifi Labs has demonstrated excellence in transparency, accountability, and prudence in delivering the protocol to the community today. Handing over full control to token holders is a monumental achievement contributing to our decentralization. Voting to support this proposal gives Hifi the tools for sustainability, properly aligns Hifi Labs as a service provider to fuel growth, and lays a strong foundation for Hifi DAO’s future.
To vote on this proposal and qualify for the governance airdrop, you must withdraw your MFT from exchanges this week. Hold your tokens in a self-custody wallet like metamask or ledger. Voting on this proposal will go live on Snapshot December 5th. Watch our official social channels for updates and beware of scams working to mislead you. When in doubt, verify information in public channels on our official discord.