Hi Haze Community, we have a major update that we’d like to share with you all. Following the change of our HAZE tokens reward emission rate for Frequency Mining, we will also migrate into Haze Finance treasury v2 (also known as staking reward v2).
As many of you already know, Haze Finance has accumulated over 1.8 million of staking rewards, sitting there, waiting to be distributed to HAZE tokens stakers. HOWEVER, the team has never been able to distribute all of these rewards out to stakers in big chunks because that will affect the liquidity of HAZE tokens way too much (we use BUSD collected from protocol fees to market buy HAZE tokens and distribute among sHAZE holders). Yes, the biggest problem that Haze Finance has right now is that we have too much cash in hand! But we have found a solution for this!
And that’s not it, the treasury v2 will also optimize its usage for the benefits of all HAZE tokens holders by using its funds to buy back more HAZE tokens from the market. It will become the most important feature in the DAO that Haze Finance will soon become.
Here are the details:
- In HAZE treasury v2, we take 50% of the funds in the treasury and put that in HAZE-BNB liquidity pool
- As Haze Finance accumulates more protocol fees, more funds will be added to treasury and thus more liquidity in the HAZE-BNB liquidity pool, the team will be able to distribute the HAZE staking rewards more in bigger chunks.
- When the liquidity of HAZE tokens is high enough, we will automate the staking rewards distribution process.
- We take the other 50% of the funds in treasury and use it to buy back HAZE tokens.
- When the governance goes live, the DAO members can vote on proposals to decide if they want to continue to utilize the funds in the treasury for such purposes.
Why is this better?
- The goal of this update is to make the treasury the BIGGEST HAZE TOKENS HOLDER. Treasury is the reserved funds for Haze Finance and DAO members can vote on proposals to decide the use of funds in treasury.
- Putting 50% of the treasury funds to provide liquidity for HAZE-BNB pair not only help to increase and maintain the liquidity of HAZE tokens, which allows for more staking reward distribution, it also ensures that there will always have a great percentage of HAZE tokens being staked in the liquidity pool.
- Using the other 50% of the funds in the treasury to buy back HAZE tokens will also effectively reduce the HAZE tokens supply circulating in the market.
Where to see the metrics:
We have updated the home page of Haze Finance. Now users will be able to see the allocation and distribution of treasury funds under the “DAO Treasury” section at the bottom of the Haze Finance home page
Haze Finance Governance will soon go live. I will publish a separate article on this, stay tuned!