Tokenomics V2

Automated Security & Treasury Management

All token-related operations (freeze, wipe, mint, etc.) are secured through an automated multi-signature system of multi-signatures.
The HSUITE Treasury implements automated multi-signature of multi-signature controls (Manual Operations thorugh the council members will be deprecated).
Treasury HSUITE tokens are managed through automated DAO proposals, maintaining flexibility for fund management and project growth.

While the community core team is not requesting a fixed HSUITE allocation, a monthly operational budget of 30,000 USD in HSUITE tokens is required for development sustainability. This approach demonstrates the team's commitment to receiving fair, stable compensation for their work in USD terms, rather than speculating on potential token appreciation. The focus is on sustainable development through predictable monthly funding rather than token holdings.
The withdrawal process is fully automated through:
1. One-time recursive DAO proposal for operational funding (can be modified by future proposals)
2. Real-time HSUITE/USD price calculation
3. Automatic conversion of USD amount to equivalent HSUITE tokens
4. Smart-Node-controlled treasury disbursement
The system includes fail-safes:
- Initial DAO approval required for the recurring monthly withdrawals
- Price calculation uses a 24-hour TWAP (Time-Weighted Average Price) to prevent manipulation
- Randomized withdrawal timing within each month for enhanced security against front-running
- Maximum withdrawal limits in both USD and HSUITE terms
- Automatic transaction rejection if price feeds are stale or compromised

The HSUITE Treasury implements a flexible spending model governed entirely by the community through the DAO:
- Marketing budgets can be adjusted based on community needs and market conditions
- Special initiatives and partnerships can receive funding through community consensus and/or the HSUITE FOUNDATION
- Emergency funds can be allocated through expedited proposals when necessary
- Extended team members (moderators, consultants, advisors) may receive fixed monthly HSUITE allocations based on their roles and contributions. (ex. 625,000 HSUITE/week)
The spending process follows a structured approach:
1. Community/Team members submit detailed spending proposals
2. Proposals undergo community discussion and refinement
3. DAO voting determines approval and allocation amounts
4. Dedicated Smart-Apps automatically execute approved distributions
5. Real-time tracking and reporting ensure transparency

Smart Node operators earn an up to 8% Annual Percentage Rate (APR) on their locked HSUITE tokens with a minimum lock period of 1 year.
Rewards are automatically distributed to node runners based on their locked amount.
Node runners must commit to running their node and keeping their tokens locked for at least 1 year to be eligible for rewards.
This mandatory lock period ensures long-term commitment and network stability.

Developers must acquire NFT subscriptions to access the Smart-Node SDK.
Each NFT grants a predetermined allocation of HTTP calls for smart-node interactions.
All subscription payments are made in HSUITE tokens.
Paid HSUITE tokens are automatically sent to a dedicated burning account.

HSUITE tokens from NFT subscriptions are systematically burned at scheduled intervals.
The burning rate correlates directly with developer activity and platform usage.
Increased development naturally leads to accelerated token burning.

Last updated 1 month ago