A select number of longstanding Hydro community members have teamed together and would like to announce the creation of PhoenixDAO, a truly open-source and decentralized project built to realise the original ethos of Project Hydro.
The Hydrogen Technology Corporation created Hydro in 2018 as an open-source project and core component of their Molecule Platform. The promised ‘future of the web 3.0’ was very convincing and a huge number of people bought into this concept of community built, open-source protocols, working hand in hand with proprietary fintech technology.
Hydrogen’s initial decentralization plan included an HCDP program paying developers in tokens to build on the Hydro protocols and to create a digital identity-driven dApp Store, with a Decentralized Ambassador program to oversee it. However, a number of factors including Hydrogen’s majority ownership of the supply, legal ramifications in the US, and the core developers leaving the project abruptly created many obstacles in achieving this vision.
When Hydrogen and its core team were no longer building on the project in early 2019, Hydro Labs, a new company formed by community members, began building out products using the Hydro protocols and finishing development of the Hydro dApp Store (under a services agreement deal made with Hydrogen).
Along with community developers, the Hydro Labs team expanded the digital identity-driven Hydro ecosystem and released the first non-custodial mobile wallet app enabling gas-less transactions on Ethereum. However, as the 1 year services agreement with Hydrogen expired, Hydro Labs closed its doors due to market conditions and other limiting factors within the original design of the Hydro ecosystem.
Elsewhere within the community, the Phoenix DAO foundation was launched by Hydro community members to correct the missteps of Hydrogen’s initial attempt at creating a decentralized financial ecosystem. These missteps included community and investor gripes of Hydrogen owning over 60% of the token supply, the lack of a decentralized governance plan, a vague token distribution plan, and no plan in place to prevent core developers from dumping on the market.
Coupled with a very high token supply in a declining crypto market driving the HYDRO token to around five sats, the community felt the need to form a foundation to truly decentralize control of the project they built.
Rising from the Flames — PhoenixDAO
The Phoenix DAO foundation is launching a new token (PHNX) that solves the centralized issues at the core of the original Hydro project with a community built DAO, a healthier token distribution plan with built-in smart contracts, added use cases, and an updated token supply.
The PHNX ecosystem includes the following protocols;
Including a dApp Store and Events Marketplace.
The PHNX token will begin trading on the Bittrex Global exchange on May 28th, 2020. All Hydro token holders are able to receive PHNX tokens at a rate of 1:100 if they complete KYC on Bittrex Global before the launch date. The rate is due to the ~100x less total supply of PHNX tokens vs HYDRO.
Bittrex Global will conduct the airdrop so HYDRO tokens must be on a Bittrex Global wallet on or before May 28th.
Due to the legal landscape in the United States, US residents, including Hydrogen, will not be able to participate in the PHNX airdrop.
Further clarification on the improvements the Phoenix DAO foundation is making upon the HYDRO token can be seen below.
PhoenixDAO is currently undergoing comprehensive discussions to incorporate Phoenix into the technology that Hydro Labs was developing. We will bring you an update to these discussions in announcements to come.
Initial Token Distribution
DAO rewards: 16,500,000
DAO fund: 16,500,000
HYDRO holders: 44,000,000
Total Supply: 110,000,000
Phoenix DAO Fund
All users who wish to participate in voting through the portal will need to complete KYC and have at least 1,000 tokens staked at time of voting. A KYC portal will be built where users are able to complete KYC using the Phoenix Identity protocol.
A subdomain of the phoenixdao.io website will be used for users logging in and voting, and is where the dApp Store will be housed.
Items to vote on: dApps, smart contracts, community leaders, marketing, exchanges, future initiative programs.
Tokens allocated: 16,500,000
By participating in the Phoenix DAO, you are able to receive a reward in PHNX tokens.
In this chart we show how the tokens will be distributed to participants during this period of time once the DAO is operational. After 24 months, the tokens that have been generated from the dApp Store will be used for future incentivization.
Tokens allocated: 16,500,000 PHNX
Future Foundation/DAO Initiatives
This includes making proposals to the DAO/community about marketing, protocol development, dApp development, donation initiatives, grants, or just looking to support community members or corporations who are actively contributing to the ecosystem.
ex. Phoenix Loans program would give out micro-loans to jumpstart credit in unbanked areas. Loans will be paid back in PHNX tokens with low interest for approved borrowers through their DeFi-ID score. Current PHNX wallet holders may also stake tokens into this program.
These initiatives will also be used to keep the foundation funded past full token distribution.
Tokens allocated: 16,500,000 PHNX
Current HYDRO Token Holders
All HYDRO wallet owners who complete KYC on Bittrex Global will be eligible to receive the airdrop of 1 PHNX per 100 HYDRO tokens credited by Bittrex Global to HYDRO wallets on the exchange.
All tokens that are not collected will be sent to the foundation for ecosystem development and future initiatives.
Tokens allocated: 44,000,000
Protocol and Phoenix dApp Store Development
This involves expanding on the current Phoenix protocols to improve contracts relating to authentication, identity, storage, tokenization, and payments.
Developers will be on-boarded to create various dApps needed by decentralized services.
Five flagship dApps voted on by Foundation Founders to replace current centralized apps; such as the Events dApp created to replace Ticketmaster. The foundation/DAO will use funds from these dApps to continue operations into the future. The foundation/DAO will also take a 2% fee on all dApp sales through a smart contract which is developed, as outlined in the white paper.
Future dApp proposals will be accepted and voted on by the Phoenix DAO before being added to the list.
Partnerships will be set up with blockchain developer training groups and blockchain initiatives all around the world to expand the developer ecosystem.
There will be an option on the dApp Store to convert any ERC-20 into PHNX for use on the dApp store (Uniswap/Totle).
Tokens Allocated: 33,000,000
Foundation Funds Breakdown
Foundation funds will be secured in multisig wallets and smart contracts to release tokens on a staggered schedule to prevent market saturation.
Total allocated: 33,000,000
Product Development and Partnerships: 16,500,000
Foundation Development Funds: 16,500,000
- Foundation Core Team: 5,000,000
- Immediate Release: 3,833,333
- Released after 6 months: 3,833,333
- Released after 12 months: 3,833,333
Foundation Core team
5 total core team members:
- Global Communications Director
- Global Blockchain Director
- Global Marketing Director
- Global Partnerships Director
- Global Initiative Director
1,000,000 tokens locked in a smart contract for each core team member, of which 350,000 tokens are released initially, and then subsequent bi-monthly payments of 72,222.22, there are strict guidelines in place signed by all team members on selling of any tokens. Foundation core team can vote to remove/replace or adjust token allotment of any other team member with a majority vote.
The community can also vote in new leadership with a 60% majority vote.
Use case Overview:
- Protocol layer use cases
- Phoenix dApp Store use cases
- Phoenix DAO use cases
- Hybrid apps use cases
- As currency for payments, loans, interest in PHNX.
- Organizations requesting a user’s identity information must pay the user in PHNX.
- Allows for dApps to be built on any vertical with an identity layer and enables them to utilize PHNX.
- Fees for file storage paid in PHNX.
- Enables for dividend payments to security token holders in PHNX.
- Interest payments in PHNX.
- Use legal contracts from Phoenix Storage to be approved.
- On-chain approval from Phoenix Identity for KYC/AML users.
- Micro-transaction of PHNX for authenticating an action.
Phoenix dApp Store
- 2% of all dApp store sales will be sent to the DAO smart contracts for use in expanding the ecosystem through dApp development and future initiatives.
- dApp sales will be priced in PHNX. Option to trade any ERC20 for PHNX instantly.
- Owners of dApps can charge users additional fees in PHNX, and 2% of the sales of these transactions go to the DAO smart contracts.
- All DAO funded flagship dApp sales will be used for ecosystem expansion.
- 1,000 staked PHNX required for voting rights in the DAO.
- 10,000 staked PHNX to create a proposal.
- Voting to include changes to governance structure, leaders, protocol proposals, marketing proposals, listing proposals, funding/rewarding people for participation within the ecosystem.
- Buy, sell, and gift event tickets, which are purchased in PHNX.
- Early access on purchasing tickets can be given to PHNX token holders.
Expected Product Usage
- P2P transfers
- Discount on fees for using PHNX
- Staking of PHNX for fee reductions in product subscription models.
Over the past two years the community has been building and developing a robust blockchain ecosystem that has never been given the opportunity to reach its full potential. The creation of the Phoenix DAO finally removes the shackles and gives the world the chance to freely develop and build on the project on their own terms.
PhoenixDAO is a truly decentralized, open-source project that covers identity, payments, tokenization, authentication, and storage, alongside a dApp Store which sits at the heart of the Phoenix ecosystem. A core part of the PhoenixDAO strategy is to actively on-board both individual developers and enterprise level corporations to build using the protocols to power their products. This will enhance decentralization, token utility and the overall ecosystem.
Ecosystem builders and the community will find benefits across the board from this fork as we launch with a true sense of decentralization and community control backed by an extremely passionate, talented team and solid network of partnerships.
White Paper: https://github.com/PhoenixDAO/PhoenixDAO-docs
Please join us;
- Telegram: https://t.me/PHNXDAO
- Twitter: https://twitter.com/phnxdao
- Facebook: https://www.facebook.com/Phoenix-DAO-110119317367230
- Reddit: https://www.reddit.com/r/PhoenixProtocol/