The decentralized price oracle machine NEST Protocol main protocol v3.5 version will be launched on January 19, which will improve the stability and security of HBTC quotations and bring many benefits, such as dual-track quotation of HBTC oracle track, adjustment of dividend ratio and increase of DAO system repurchase.
Written by Luca
nHBTC is the HBTC/ETH quotation oracle reward token, generated by 100% fair mining, 0 pre-mining, and 0 private placement. Among them, HBTC is a BTC-anchored currency launched by Huobi. It is issued on Ethereum at a ratio of 1:1 and has become the second largest BTC-anchored currency in Ethereum. Its asset size has exceeded US$600 million and it has entered multiple leading DeFi protocols. With the launch of the v3.5 version of the NEST Protocol main protocol on January 19, 2021, it will bring a lot of innovations. These innovations will greatly improve the stability and security of HBTC quotations, and will also bring many benefits, such as the dual-track quotation of the HBTC oracle track, adjustment of the dividend ratio, and the increase of DAO system repurchase. nHBTC will usher in an era of deflation. In response to these changes, we separately analyzed the preparations that HBTC quotation miners, verifiers, and currency holders need to make.
Mining level
On the 28th of this month, nHBTC will reach 5 million tokens, so the dual-track quotation mechanism will be forced to be adopted. With the expansion of the repurchase mechanism, after the V3.6 version goes online, it is expected that the number of nHBTC mining will not exceed 6 million.
For example, the required quoted assets for dual-track quotation: 30 ETH, HBTC asset worth 30 ETH, 30 ETH, NHBTC asset worth 30 ETH. A total of 120 ETH worth of quote assets is required to participate in quote mining.
The significance of the new dual-track quotation adopted by the price oracle:
1) Solve the problem of unlimited nesting dolls in nHBTC quotation;
2) Solve nHBTC’s own pricing issues, which will prepare for buybacks;
3) Save a certain amount of gas fees consumed by quotations.
Each mining transaction can accumulate up to 100 blocks of nHBTC mining rewards. After 100 blocks, the mining rewards will not increase infinitely with the blocks. Greatly reduces the number of tokens produced.
Revenue level
nHBTC dividends ETH every Friday at 12:00:
1) 60% of the HBTC quotation fee is used for dividends, and 20% enters the nHBTC system for repurchase
2) All the call income generated by the price oracle corresponding to HBTC enters the nHBTC system for repurchase.
3) Remove the system income leveling mechanism, and the ETH assets in the respective savings contracts will automatically enter the respective DAO systems for repurchase.
Adjustment of income collection method:
Adjusted to a staking model from income distribution every Friday. All nHBTC can be deposited/withdrawn at any time, and the income value is distributed according to the deposit amount and deposit time. The income is automatically accumulated, and the holder can actively withdraw the income. This will greatly increase the locked position of nHBTC.
According to the developer's development plan, the above will be carried out in 2 stages:
Phase 1: Version 3.5 will be implemented in accordance with the public development plan. Taking nHBTC as an example, 80% of the quoted handling fee will continue to be distributed as dividends, and the rest will be uniformly entered into the DAO system for repurchase, but will not be destroyed. The repurchased nHBTC will be placed in the DAO system contract for lock-up.
Phase 2: 30 ~ 45 days after version 3.5 goes online, version 3.6 will be online, using a 100% repurchase model. As for whether the repurchased nHBTC will be destroyed, the community can vote to decide. Because version 3.6 will launch the voting system simultaneously.