Changes v0.4.0 - 0.4.18
0.4.0 <= complete rewrite using Wagmi framework for better performance and network compatibility
- 0.4.18 Fixed HEX/USDC price lookup on Ethereum due to HEX Graph service sunset
- 0.4.17 Fixed EES penalty calc bug where it wasn't including 100% of BigPayDay in some cases
- 0.4.1 to 0.4.15 UI Tweaks & bug fixes
Don't like the new wording?
We're not sure we do either!
You can append ?lang=original to the URL to revert to the good old days. Or append ?wording to the URL and switch to either version using the selector, top right of screen.
How Best to Phrase the Truth?
This started as a re-think to avoid the tainted words "stake" and "staking" because, well yo know, the SEC in the USA has completely lost the plot! I get it. Keep people safe from themselves, like we're all little babies without brains to think for ourselves. But far out Gensler! Seriously?
Anywho ...
Background
HEX uses the word "stake" to mean "time lock". In fact, it's just a promise you make to yourself with no third parties involved. Only you can mint your HEX. No one else. Thus, when you do mint HEX, you are really just publishing the fact on the blockchain with no input or expectations from others what-so-ever. This is far from "staking" in the form where one gives their coins to some third party in hopes of getting more back, let alone any! We stand with Gensler on the latter front. Huxters! Scammers! :P HEX isn't that though. Not even close. It's new. HEX is genuinely novel. Granted, it takes a brain cell or two to understand this fact. Shout out again to our friend Mr. Gensler at the SEC of the USA like OMG, WTF? :/
DRAFT Proposal
Preamble
The creation of new HEX.com tokens comes about when YOU publish new data on a blockchain. There is no reliance on any other entity. It's just you and the contract. You decide an amount of HEX you already control to burn (destroy) choose a number of days between 1 and 5,555, as a contract term and publish your commitment on the immutable public blockchain. Then, you simply wait for those days to pass. All the while YOU decide if and when to take action to publish evidence of your own actions. Your only duty is to yourself as witnessed by the smart contract and published publicly, by you or not at all. You prove you kept your promise (or not) by publishing new HEX tokens on the blockchain — or not.
HEX is Free Speech
There is no compulsion to publish new HEX tokens or indeed any practical means of preventing the same.
New HEX tokens are published in a public immutable blockchain as a matter of free speech by freely acting individuals on their own accord if and when they so choose. Much the same as an author brings new material into the world — from their own mind; from thin air — so too are new HEX tokens conjured into existence by free individuals, when and if they desire. The rules of the smart contract are the same for all users and cannot be changed.
About this Decentralized Blockchain Application (dApp)
HEXmob.win aka go.TShare.app is an independently designed and produced HEX.com (no affiliation) user interface.
This version (0.3.x) employs new phraseology around the HEX.com smart contract. The idea is to more closely match what actually happens when interacting with the contract, along with a casual attempt to align with existing accounting and taxation phrases, if and when applicable.
The Life Cycle of a HEX Smart Contract Term
The following text is a work in progress.
You DESTROY (burn) HEX
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You — and only YOU can do this — DESTROY ("burn") HEX tokens to DEPLOY a new "mining" contract with a TERM you decide, specified in days.
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At some future date YOU may execute contract code to cause the HEX.com smart contract to PUBLISH (conjure) pristine HEX into existence for you and the world to see. No one else is involved. Just you and the HEX.com contract computer code.
Each contract term holds a RESIDUAL value at the time of HEX PUBLISHING
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The RESIDUAL value is computed by the smart contract at time of publishing (or early forfeit.)
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If PUBLISHING occurs after and within two weeks of the contracted TERM, then the RESIDUAL value equals the contract's initial HEX COST (burn).
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The contract is FORFEITED if publishing is performed prior to the end of the agreed TERM whereupon penalties are subtracted from the RESIDUAL according to immutable contract rules.
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There is an additional 1% per week forfeiture penalty if you fail to publish your contract results within the first two weeks after term end. This penalty is calculated over the total now forfeited value of the contract up to the end of the two weeks grace period.
Using the above terminology, a sort of "token balance schedule" at the time of HEX publishing could look something like this ...
- Miner COST
+ Mining YIELD
+ BigPayDay bonus! (if any -- applies only to contracts commenced prior to Nov 19th, 2020)
+ RESIDUAL (forfeiture penalties deducted)
------------------------------------------
= NUMBER HEX TOKENS PUBLISHED (a minmum of ZERO if panaties exceed RESIDUAL)
What do you think?
Let us know! Tweet at @matiallin
Personal Taxation Musings
The above mentioned and quite literal destruction or burning of HEX tokens is clearly a COST. In some jurisdictions this may be deemed a simple expense (like a lease payment?) while in others, perhaps a capital investment (like a new tractor for your farm?) or perhaps like a certificate of deposit from a bank — a capital investment — or something else. As far as I know, no hard ruling has yet been made on this matter, just about anywhere — though there is no shortage of "professional" opinion from people with less than stellar understanding of unique blockchain assets such as HEX.
On the other hand, PUBLISHING new HEX may or may not be deemed a taxable event, while "disposing" of it by any means with or without compensation (including burning it to enter a new smart contract) almost certainly is. In my own opinion, the publishing of something new is certainly not a taxable event, unless or until I then dispose of my new creation for some kind of monetary gain. After all, how can my "new thing" have any value until it has been agreed by a willing buyer?
Some may argue that a mere number masquerading as an account balance is by its very nature fungible and thus may not be considered unique and therefore not a published thing by any means. I would counter that it was my own choice what I did and when I did it to cause or indeed not cause new HEX to be published, on my own terms within my own relationship with the contract. These events in turn form my own unique story, as published on the public blockchain as it unfolds. It is not the words in a book that bring pleasure to the reader but the story they tell. We all have access to the same words but we are not all best selling authors, if only by choice.
Whatever the case in your area, it should not be difficult to keep your relationship with the HEX.com smart contract and the greater financial space strictly legal. Simply consult a local tax professional. You may wish to shop around if you feel they don't sufficiently understand the nuance of this new technology. However, always remember it is YOU and only you that is ultimately responsible for abiding by applicable law, not your advisor. As sure as the sun will rise, they will have you sign a contract to that end!
DISCLAIMER
There is no "official" anything in the decentralized HEX space, meaning the ideas herein are those of this author alone, expressed freely and without prejudice. AWESOME!
This author is just an ordinary opinionated public schmuck. I am not a professional advisor of any kind or an accountant or indeed an expert in much of anything — especially not financial related matters or law. What you do with or concerning my ideas is entirely up to you and obviously I accept no responsibility whatsoever for your choices or actions. Welcome to HEX land, where there are no Hexpectations. ;-)
