Introducing the HYDRA Airdrop “Network Contribution” Formula

The HYDRA main distribution event is almost here. Here’s what you need to know!

Our team is working to open up the KYC and registration for the HYDRA distribution event as we speak. In the meantime, we want to take the opportunity to announce a mechanism that will significantly improve the health of the network and the economy during the transition period. You can refer to all other terms in the “Preliminary Terms” medium post.

Introducing the “network contribution formula” → to be the main determinant for the continuous eligibility of participants over the course of the airdrop. HYDRA’s main distribution event is unique because it enables the LockTrip community and respective LOC owners to become a launchpad of a brand new, one of its kind, decentralized global infrastructure. What makes this even more special is that this is planned to take place while HYDRA is already making its way as an economy and already grows in utility value. The fundamental goal of the HYDRA launch is to seed the blockchain and grow it in terms of:

• Node infrastructure size and count
• Community staking activity and total network weight
• Raising the economic barrier against 51% attacks
• Strengthening infrastructure redundancy and load balancing

It is the combination of these four factors that define how much value and economic security a public blockchain has to offer to its users and smart contract developers.

With this being said, naturally, members who take the airdrop as an opportunity to immediately dispose their HYDRA would technically self-testify that they are not willing to participate in the growth of the infrastructure. While certainly, this would be everyone’s right with the very first snapshot, it would not make sense for the system to unconditionally funnel more supply to such members throughout the remaining of the airdrop. This is why the formula acts as a penalty to speculators.

The system will disincentivize speculators by enabling a gradual 2% limit release with each additional weekly snapshot:

1st week → regular distribution to whitelisted wallets 2nd week → 98% of all previously received HYDRA need to be kept 3rd week → 96% of all previously received HYDRA need to be kept

… and so on

In the table below you can see an example for a user who holds 5,000 LOC at the beginning of the airdrop and adds 5,000 more LOC to his balance at week 6. The column highlighted in blue shows the amount of HYDRA needed in the wallet to remain eligible. When the minimum balance requirement is not met for a certain week, the HYDRA for that week will be burnt.

The minimum balance is determined via the formula:

[1 — (week number — 1) * 0.02] * [total received amount]

We’ve created a simulator that will reflect how the mechanism works. You can make a copy of this sheet and work your own numbers → Open Sheet

Additional information:

• Staking is not mandatory. The formula is simply introducing a minimum balance check that will monitor the user’s registered wallet balance as part of each snapshot. We think that users will naturally be motivated to stake when they feel comfortable doing so.
• The only condition is for the user not to fall below the minimum threshold. This means that staking and liquidating staking rewards does not affect the user eligibility as those naturally come on top of the distributed amounts.
• Upon completing each snapshot our system will automatically track the airdrop enrolled wallet and will cross-check with the corresponding minimum limit.
• There will be a user-friendly public spreadsheet reflecting the minimum limit for each wallet, as well as the current eligibility of a given wallet for the next scheduled snapshot. Thus you will always have the ability to double-check your eligibility at any moment.
• Eligibility will be determined on a per snapshots basis. This means that if you fall below the limit and miss the current snapshot, as soon as you top-up, you will be eligible for the one that would follow.
• It is not possible to fall below the required balance unless you actively liquidate too many HYDRA in advance.
• Any amounts which are not claimed due to a missed snapshot will be burned. There is no possibility to roll-over and/or claim previously missed amounts

We believe that this system will protect the network from excess volatility and will ensure a gradual transition of supply which will grow in proportion to the node count and network value as a public infrastructure. In addition to this, we will soon be announcing special incentives for the benefit of stakers and against airdrop-related volatility. Will you guess what they may be?

Make sure to read all other terms of the airdrop by checking this post: https://readmedium.com/hydra-main-distribution-event-plan-details-terms-f358fdb7bd13

Join the Hydra Community 👈

HYDRA is a proof-of-stake, inflationary blockchain that tackles some of the most profound and challenging economic issues with existing blockchain economies. Some of the more notable features:

🔥 100% Burn of all Transaction Fees

💎 50% Royalty on Gas for Smart Contract Creators → More Info

📌 Fixed Coin Transaction Fees of $0.20 → More Info

📌 Fixed Token Transaction Fees of $0.50 → More Info

💰 20% Minimum APR Staking Income → Staking Calculator

📈 Up to 540 TPS Elastic Capacity

🔏 EVM Compatible Smart Contract Platform

⚙️ Wallet-Level Scalability → More Info

🗳 Unique Decentralized Governance Protocol

⚖️ 18.5M Starting Supply with unique approach for handling the deflation tipping point. → More Info