$HNTAI Tokenomics

Having our Rewards Season 1 concluded and as we begin to approach our long awaited TGE (Token Generation Event), we thought it would be a good idea to give everybody a quick refresher on some key points in regards to our tokenomics.

Before we get started, a HUGE thank you to all those who’ve supported us in the face of the delays, and provided feedback on our marketplace. Despite the many obstacles we’ve come to face in the process, we have managed to launch our curated anime NFT marketplace, with gasless listings implemented allowing for a much more cost-efficient and improved user experience. We have also finalized on both our token claim and staking portal in preparation for our launch day. This is quite a feat for the small team we have over at Hinata, and none of this would have been possible without the support and patience from you all!

Token Generation Event

The Hinata team will be rolling out our TGE on Monday, July 17th at 10 AM UTC / 6AM EST.

Token Distribution

Here’s a quick look at some of the basics of our token distribution:

Network: Ethereum (ERC-20)
Total Supply: 100,000,000
Public LGE: 301,562 HNTAI
Initial Circulating Market Cap: $1,900,000

Primary CEX listing: Poloniex
DEX: Uniswap

The core team has carefully considered our emissions schedule to ensure there are adequate project resources for the next 5 years, with eyes set on becoming a key player in the anime NFT space, from the continuation of producing anime content, games and NFT content for the metaverse, onboarding artists in the space and beyond. All tokens will be vested using Banteg’s Yearn vesting template, widely regarded as the new industry standard for ERC-20 lockup contracts.

With the money we raised in 2020/2021, we expect to use 65% of funds raised for ongoing development costs, 25% for ecosystem growth, and the remaining 10% for legal and administrative fees. Looking back, we are quite proud to say we hit these numbers to a T and spent only what was necessary to build a simple but robust NFT marketplace with the runway to continue implementing new features and onboarding artists, collectors and fans alike.

We have made slightly over 5% of our supply available to early strategic partners who support our long term vision. 10% of tokens will be vested over 3 years for the core development team following a 6 month cliff. Project founders will be allocated 2% of the total tokens with a three year cliff. The remaining ~80% will largely be directed to community rewards and liquidity incentives through treasury allocations, our ecosystem development fund, and usage mining wallets to be voted for on a quarterly basis. And that's where our community of holders comes in!

Hinata.io is the only platform that’s built for the people. Unlike other NFT marketplaces that are built with investor and founder wallets in mind, we have been adamant about prioritizing early supporters, platform users and collection creators alike. We are the only marketplace where the users decide how tokens are allocated for platform use. We also have the lowest platform fees of any marketplace, with a maximum of 1.5% collected on every trade. 100% of these funds are directed towards token and NFT liqudity for long term ecosystem health. We are truly dedicated to making this a truly unique and sustainable NFT token that gives everyone a fair shot at growing their wallet with the success of our marketplace.

A

Airdrop

Now, on to what you guys really care about.

Community members who migrated to the WAIFv2 token prior to the snapshot (00:00 UTC on December 8th, 2021) will be airdropped $HNTAI at a 100:1 ratio, vested linearly over the course of 6 months. Tokens can be claimed from our portal at hinata.io where the claim frequency is left to the user’s discretion (1/6 monthly, 1/26 weekly, 1/182 daily, etc). A total of 9,000,000 $HNTAI will be made available in this allocation.

In addition to this, each WAIFU NFT held prior to the snapshot will generate an airdrop claim of 1,000 $HNTAI tokens. A total of 1,000,000 $HNTAI tokens will be made available in this allocation. In contrast to the tokens allocated to WAIFv2 migrators, this airdrop will be made immediately available for trading and transferring upon claim.

Combined, these 10,000,000 tokens will represent up to 10% of the total supply.

Marketplace Users

Marketplace users had the opportunity (and will again in the future) to earn EXP from both populating and trading on our platform. We have set aside tokens as an incentive bonus for users to help bootstrap activity and listings on our marketplace. For our recently concluded Rewards Season, users will be eligible to claim 3 $HNTAI for every EXP point earned in addition to a flat bonus of 1,000 tokens, i.e a user who has earned 1,000 EXP will be allocated 4,000 $HNTAI.

Tokens allocated for marketplace users who have earned EXP will stem from the “Ecosystem Development” portion of our token distribution. We will have more Reward Seasons in the future to reward users who continue to populate and trade within our platform.

Liquidity Mining Program

Following our TGE, we will be incentivizing users to provide liquidity to our Uniswap V2liquidity pool via our inaugural liquidity incentive program (LGE).

1. Users can deposit HNTAI and lock it for up to 1 year in the Vault and earn up to 12% yield on the token.
2. Users can also stake HNTAI-ETH Uniswap LP tokens to participate in our inaugural liquidity incentive program, which distributes up to 333,333 tokens per month for the first 6 months and 166,666 tokens per month for the next 12 months. The APY % will be variable, and distributed proportionally among stakers according to their size.
3. Users who stake HNTAI tokens as LP or in the single asset vault pay reduced fees on our secondary NFT marketplace.
4. The HNTAI token is regularly purchased by the DAO as part of our buyback program. 50% of all purchased HNTAI is held in escrow for future platform incentives and grants to be voted on by governance token holders. The remaining rebought HNTAI is distributed to LP token stakers who hold their tokens in the LP staking contract for longer than a month. In addition to this, we will require governance participation to be eligible for this DAO perk.
5. Usage mining incentivizes NFT trading volume on the Hinata secondary marketplace and active wallets will be able to claim up to 333,333 tokens per month for the first 6 months.
6. Virtually all of the 1.5% platform fee we collect on trades and sales is redirected to our Uniswap and CEX liquidity. In the event that we become flush, or overly liquid, some of this will be used to support partner NFT collections.

Moving forward

What to expect following the TGE? Good question!

Moving forward, we will continue to develop our marketplace to improve on user experience. We’ve received a ton of helpful feedback from you all, and will be taken into account when making improvements to our platform in order to make it a much more user friendly one. Onboarding anime artists and providing them with both financial and social incentives is another big focus we plan to tackle as we believe that as the NFT space matures, demand for artworks from individual artists will grow alongside it.

Additionally, WAIFU cards are still in play and will still be available for holders to claim as we pivot towards a newer claiming system!

Last but not least, without divulging too much detail, we have continued working behind the scenes to develop our land within SANDBOX.

With a big milestone for our project right around the corner, we hope you all are just as excited as we are! We’ve come a long way, and none of this would have been possible without the incredible support from our community!

Signed,

The Hinata Team