We’re reallocating our capital away from a sole focus on staking and towards driving user growth into the next stratosphere and to reward our users and all holders instead of just stakers. Full details are here: Houdini Swap: A new era. Q: What is the new revenue distribution model? A: Old Rev-enomics New Rev-enomics Q:Continue reading “Houdini Swap – FAQ on New Rev-enomics”
Houdini Swap – FAQ on New Rev-enomics
We’re reallocating our capital away from a sole focus on staking and towards driving user growth into the next stratosphere and to reward our users and all holders instead of just stakers. Full details are here: Houdini Swap: A new era.
Q: What is the new revenue distribution model?
A:
Old Rev-enomics
- 90% → Buyback & Staking
- 10% → Project development
New Rev-enomics
- 10% →Buyback & Staking
- 40% → Buyback & Burn
- 50% → Treasury for marketing and project development.
Q: What are the benefits of the new model for $LOCK holders?
A:
- Reduced Supply: Buyback and burn mechanisms create a deflationary effect, increasing token scarcity.
- Fair Rewards: All holders benefit, not just stakers.
- Growth Focus: Treasury funds will drive platform adoption and user acquisition.
Q: Why change the staking model?
A: Staking failed to drive adoption or create meaningful network effects. Despite offering high APYs (up to 160%), we saw no net new stakers and even experienced outflows. We’re shifting to a model that rewards all users and prioritizes growth.
Q: What happens to my staked tokens?
A: Your staked tokens will remain staked, but you can now unstake them with a 14-day notice period instead of the previous 90 days. The immediate unstaking option is still available, and the penalty fee for doing so has decreased to 14% from the previous 25%.
Q: Can I just keep my tokens staked?
A: Absolutely, wizard! The staking program will continue, with 10% of Houdini Swap’s revenue allocated to staking rewards. You can also now compound your earned rewards for additional benefits.
Q: What if I’ve already started the unstaking process?
A: If you began the process more than 14 days before Feb 10th, you can claim your tokens + rewards immediately.
If you began the process less than 14 days before Feb 10th, your claiming date will be adjusted to fit the new 14-day notice period, starting from the day you began the process.
Q: How will the buyback and burn work?
A: 40% of revenue will be used to buy back $LOCK tokens on Solana. At the start of each week, bought-back tokens from the previous week will be bridged to LOCK/ETH and then burned on Ethereum. We will announce the number of tokens burned every Magic Monday and in our weekly/monthly swap reports.
Q: What happens to the 3.8M LOCK tokens in the “burn pending” wallet?
A: Stay tuned! Burning over $1.5M in tokens is a big deal, and we want to maximize the marketing impact.
Q: What’s the plan for the treasury?
A: 50% of revenue will fund our treasury for growth initiatives, including marketing, product development, and ecosystem expansion.
Q: Will the treasury wallet be public?
A: Yes, the treasury wallet will be public and transparent. The address will be published when the new program goes live.
Q: Can we suggest ways to spend funds from the marketing wallet?
A: We’re always open to ideas! Drop your best pitches in Telegram.
Q: What changes were made to $LOCK’s liquidity pool?
A: We’ve simplified the liquidity pool structure to align with proven models from top projects. This shift introduces more natural buying and selling opportunities, benefiting the project long-term.
Q: When did the liquidity changes take place?
A: The changes were implemented on February 7th for both ETH and SOL. It was not announced to avoid gaming the system.
