I am pleased to see a very active discussion on Telegram on how an ideal token launch should look like in the eyes of the community. The dream of the HOPR team is that from the launch, we are building on he principles of privacy, fairness and resilience. So I would like to share my thoughts on the importance of these three angles for your consideration when discussing the token launch of HOPR.
- Preserving privacy: The HOPR protocol sets out to protect privacy in ways that are better than existing solutions. This explicitly means that we must also protect the privacy of those who will run HOPR nodes and get HOPR tokens for doing so. Therefore neither HOPR Association nor any third party should identify the users who get HOPR tokens through KYC or other means as that would allow for discrimination, prosecution and censorship of HOPR node runners. This is not about you being OK with opting in to KYC, this is about not giving powerful third parties the ability to stop HOPR.
2.1 Geographic: The HOPR token should be available to anyone, disregarding where they live or which passport they happen to hold. While HOPR Association has to comply with existing laws and regulations we want to minimize blanket bans on jurisdictions.
2.2 Timing: Fairness also means that work which was done for the protocol could be rewarded by participating in priority to others. At the same time, those who just joined the HOPR community more recently should not be excluded. We want to build and inclusive privacy community for all of you and together with you.
2.3 Liquidity matters: While we’re not trying to raise the war chests that the centralized crypto foundations of the last bull market are managing, it is important to realize that liquidity matters: The advent of decentralized exchanges such as Uniswap, Sushiswap, Balancer and many more brought fundamentally more private trading venues that can manage liquidity to the benefit of everyone. Sudden price fluctuations are detrimental to anyone in a community but the liquidity on decentralized exchanges can act as a buffer to resist sudden price swings. While many are afraid of whales unloading large bags of money on a project, it is only fair to recognize that this liquidity can be put to a beneficial work on DEXs for everyone.
- Resilience: Ethereum is a vastly popular blockchain that lately becomes expensive for small users who are transmitting little value compared to the transaction fees that can easily reach $10s to $100. At the same time, we have to consider the inconvenient status quo of why Ethereum transactions are so expensive: Today there is no other general-purpose blockchain that provides these levels of censorship resistance, decentralization which also stood the test of time. There are many other blockchains and Ethereum side chains (e.g. Binance Smart Chain, xDAI, Matic, etc) which are capable of hosting blockchain games, art or financial transactions. But the unstoppable privacy network that we seek to build at HOPR needs a resilient foundation. It is unfortunate that this foundation is expensive. But I remain confident that within the next 12 months we will see general purpose scalability solutions (L2s) on top of Ethereum that improve the costs while not significantly degrading the resilience of the decentralized applications running on top of it.
Looking forward to hearing your thoughts on what makes for the most private, fair and resilient token launch.
All the best,