Why we’re updating the HST Token mechanics
After reviewing the utility of the HST token, we have decided to modify the white paper to better reflect our company beliefs.
Original Token Structure
The first version of the Haste white paper explained the distribution and utility of 200,000,000 HST tokens. The distribution schedule was set to last for 5 years, with tokens being issued to gamers, developers, the Haste founding team, and investors. Token holders could trade the tokens on exchanges, or hold the tokens for benefits within the Haste Arcade such as discounts on gameplays, tournament entry costs, and game listing fees (for developers).
Updated Token Structure
The updated token structure includes the same distribution schedule of 200,000,000 HST tokens over a 5 year period to gamers, developers, the Haste founding team, and investors. The key difference is that HST is now backed by BSV (a commodity) and represents 5 years' worth of public outputs from gameplays within the Arcade.
Gamer Token Earning and Distributions
Gamer token distributions will last 5 years until all 80,000,000 gamer tokens have been issued. There will be 43,835 tokens awarded each day and split amongst all players from that day. The amount of tokens a player earns on a specific day is based on the amount of BSV the player spent compared to the total BSV spent that day across the entire platform.
Example: Alex spends 20,000,000 SATS in the Haste Arcade on a day where there are 200,000,000 total SATS spent. Alex is awarded 10% of all the HST tokens issued for that day — 4,384 HST.
Developer Token Earning and Distributions
Developer token distributions will last 5 years until all 30,000,000 developer tokens have been issued. There will be 500,000 developer tokens awarded at the end of each month, and split amongst all developers that had games in the Haste Arcade with gameplays from that month. Similar to the gamer token distribution structure, developer tokens will be awarded to developers based on the number of SATS spent on their game(s) within a given month compared to the total number of SATS spent across the entire platform.
Example: Taylor lists a game that has 100,000,000 SATS spent on it for the month of April. In total, 500,000,000 SATS are spent across the entire Haste Arcade for the month, meaning that Taylor’s game had 20% of all SATS spent and is distributed 20% of the developer tokens for April — 100,000 tokens.
Token Utility and Value
As part of Haste’s Instant Leaderboard Payout (ILP) Arcade™ structure, 10% of all Bitcoin spent across the entire Haste Arcade is deposited (as a part of the peer-to-peer gameplay outputs) directly into a publicly viewable wallet, known as the Haste Loyalty Wallet (HLW). Outputs will flow into the wallet for 5 years. Anyone holding the HST Token can redeem their tokens for their pro-rata reward of the BSV in the HLW at any time. Once the tokens are redeemed, they are burned.
Example: Rachael holds 100,000 HST tokens, 5% of the 2,000,000 tokens that have been distributed thus far. The Haste Loyalty Wallet currently holds 50 Bitcoin. Rachael redeems all of her HST tokens for 5% of the HLW, earning her 2.5 Bitcoin. 100,000 HST are burned thus lowering the total supply moving forward.
In addition to redeeming tokens through the Haste Arcade, token holders will also be able to trade their HST tokens on exchanges.
Why We Made the Change
In 2017 we saw the boom of ERC-20 tokens on Ethereum, and thus the emergence of the “ICO”. Anyone involved back then knows the speculative circus that it was. Tokens would trade at wildly overvalued prices and in many cases, there were tokens with market caps that exceeded $100MM without an actual product. In those days (and even presently) a glorified landing page with a good design was about all one needed to raise capital from the crypto crowd.
After staring at what we had originally published a couple of weeks ago, we realized that the model for HST was too similar to things that we had seen in the past and it wasn’t sitting well with us. Something needed to change before minting the tokens. While the utility would come in the form of a discount on gameplay, the wild speculation that would likely occur on the token price would follow what we saw with ERC-20 tokens back in 2017, and that’s not what we are about. For similar reasons, we’ve never even considered a public sale of the tokens.
Under the original model, with enough time and success, it’s not hard to imagine that HST could become more important to its founders than BSV. However, we got into the Bitcoin business because we believe in Bitcoin. The new token mechanics are more aligned with our core beliefs, are better for the BSV ecosystem, and prefer founded price discovery over unfounded speculation.
At the end of the day, we’re making this change because we want the focus to be on acquiring and using BSV. Think of HST as the tickets that you’d win playing games in a physical arcade, the only difference is that when you turn in your tickets, you get Bitcoins instead of a stuffed animal.
The HST Token is scheduled to be minted before the end of April, and all players who participated in the beta release will be receiving a pro-rata reward of tokens for their previous game plays.