Event Horizon
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How does HVAX accrue value?

We view our value through two lenses: Cash Value and Ecosystem Impact Value:
Cash Value
  1. 1.
    Yield Generated from Staked Assets (inflationary)
  2. 2.
    Yield from Treasury Assets (non-inflationary)
  3. 3.
    Bounties, Bribes, and Burns
  4. 4.
    Protocol Fees
  5. 5.
    Market Premium
Ecosystem Impact Value
  1. 6.
    Internal Governance Value
  2. 7.
    External Governance value
  3. 8.
    Mobilization of DAO Treasuries
  4. 9.
    Mobilization of LP Assets
  5. 10.
    DAO capture
From a cash value perspective…
  1. 1.
    Yield generated from staked assets (inflationary): The yield earned on ExDAO assets staked into Event Horizon vaults is collected in the Event Horizon treasury. The principal staker is awarded cHVAX (collateralized HVAX) tokens which are backed by this treasury. This is inflationary cHVAX value capture.
  2. 2.
    Yield from treasury assets (non-inflationary): Secondary yield can be generated from here. Once amassed within the treasury further yield can be generated by staking the treasury itself and the proceeds of this second yield cycle would create IRR which doesn’t require emitting any new cHVAX. This is non-inflationary value capture.
  3. 3.
    Bounties, Bribes, and Burns: Beyond this, bounties can be placed by external parties to encourage the community to use the amassed voting authority in favor of the bounty/bribe provider. Should the community choose to vote with the bounty provider, the bounty reward is placed in the treasury which is again owned by the Event Horizon community as a form of non-inflationary value growth.
  4. 4.
    Protocol Fees: Upon greater scale and further assessment of market appetite, the Event Horizon community may vote to implement fees where applicable. Examples include fees on burning and bounties.
  5. 5.
    Market Premium: Because of fees, bounties and the points below, we anticipate Event Horizon to trade at a premium above the underlying asset basis, and thus sale to market will often make more sense than collateral redemption.
From an ecosystem impact/significance perspective…
  1. 6.
    Internal Governance Value: Like all other DAOs Event Horizon’s governance token allows for voting on internal proposals. Given the central spoke Event Horizon will play, this form of internal governance serves as an outlier compared to traditional DAOs.
  2. 7.
    External Governance (Authority-Multiplied, Multi-DAO): Event Horizon’s voting token functions as a single, leveraged voting vehicle with meaningful impact across multiple DAOs with non-participatory / lazy holders implicitly delegating their authority to active voters resulting in multiplied voting power for those who partake. This is Event Horizon’s main impact.
  3. 8.
    Mobilization of DAO Treasuries: DAOs typically do not use their own treasuries within their own yield products for several reasons (inflationary, zero sum, poor optics etc…). With Event Horizon DAOs may stake their ExDAO treasuries and instead be paid in a bundle of the broader market instead of more of their own asset. As Event Horizon gains an influential share in an ExDAO, our community can vote to mobilize lazy ExDAO treasury assets for yield to the benefit of both protocols.
  4. 9.
    Mobilization of LP Assets: Millions of dollars of DAO assets remain unutilized in governance stuck in LP positions. Event Horizon offers compound and passive yield to stakers while still mobilizing their assets within governance proposals.
  5. 10.
    DAO capture: Due to the chronically low token participation issue that plagues the ecosystem, it turns out not much capital (often between tens to hundreds of thousands of dollars) is needed to be the deciding vote. So as Event Horizon not only continues to support more DAOs but also reaches the crucial treshhold required to be the deciding vote on those DAOs, the will carry tremendous weight. 1 token, up to 1000x vote multiple, be the deciding vote on several DAOs. That's a lot of value.
Ultimately, the entire model is designed (as an Event Horizon / blackhole) to align interests such that an increasing amount of governance authority is captured and retained. We see votership and yield generation being most game theoretically sensible within EH relative to voting or staking solo. These mechanics become increasingly the case as the protocol grows total value/authority capture such that it becomes the meta-governance layer for the broader ecosystem.