🔥Incoming Important DAO proposal🔥 https://dao.hydrachain.org/t/mainnet-migration-and-economic-adjustment-strategy/298 Dear Hydra DAO Members, As we prepare for the highly anticipated launch of our new Hydra Mainnet, several vital steps are being proposed to ensure a smooth migration and to adjust our economy for the exciting events ahead. Economic Adjustments and APR Reduction The new Hydra mainnet introduces a completely redesigned economic framework focused on enabling high APR for vested positions while limiting unconditional inflation for unvested and short-term positions. To stimulate economic activity and prepare for the transition to the new mainnet, it is proposed to reduce the current unconditional inflation on the legacy HYDRA mainnet from the current APR of approximately 31%. This reduction is essential to manage inflation, strengthen the economy, and enable a smoother migration across the ecosystem. The schedule for the APR reduction is as follows: *3 Halving Events in one powerful phase* Halving #1 : First Week of August 2024**: Reduce System Inflation to 10% - would yield ~ 15% actual APR due to the lower relative circulating supply Halving #2: First Week of September 2024**: Reduce System Inflation to 5%, which would yield a ~ 7.5% actual APR due to the lower relative circulating supply Halving #3: First Week of October 2024**: Reduce System Inflation to 2.5%, which would yield a ~ 3.75% actual APR due to the lower relative circulating supply HydraGon Mainnet Migration: Reduce APR to 0%. Once both Mainnet and the Bridge for asset migration are enabled, further reduce the APR on the legacy Hydra mainnet to 0%. This step ensures a natural incentive for everyone to transition to the new platform. Additionally, setting the APR to 0% on the old chain ensures that as supply flows out of legacy HYDRA, no boosted APR will occur due to reduced staking activity, which could potentially hinder the migration. Impact on Emissions and Boosted Economy As per current explorer data (https://explorer.hydrachain.org/api/info), there is currently 24.5M HYDRA in circulation. When we factor the ~31% APR, this means staking emissions distributed to all stakers are currently in the 7.6M HYDRA per year/20,808 HYDRA per day. As a consequence of the halvings, the new emissions will be adjusted to: Halving 1 : Decrease from 7.6M to 3.8M HYDRA per year (down to 10,404 HYDRA per day) Halving 2 : Decrease from 3.8M to 1.9M HYDRA per year (down to 5,202 HYDRA per day) Halving 3 : Decrease from 1.9M to 0.95M HYDRA per year (down to 2,601 HYDRA per day) As a consequence of the third halving, the emissions will be relatively close to what the unvested HydraGon emissions will look like and from which point onward, emissions will be throttled automatically based on price performance and the self-aware HydraGon Consensus. Needless to say, the new unvested economic model of HYDRA intends to rebalance supply vs demand and makes obtaining HYDRA via staking a lot more difficult - 8x times more difficult compared to now to be precise. As timing, Mainnet will most likely be prior or similar to Halving 3, but the migration pathway via the new upgraded bridge will be enabled shortly afterward only after all auditing is completed. Ensuring Security on Legacy HYDRA To maintain security and stability on the legacy Hydra mainnet following the APR reduction, it is proposed to utilize company staking pools. This will reinforce the network’s security for at least one year after the APR reduction to 0%.