You may wonder, what are the dev team up to these days? The simple answer is, we are learning! And the current market condition gives us the opportunity to spend some time doing it.
We started out in Q3 2021 with a vision and a first cut of a Roadmap we knew we had to change at some point. The ideas we had in our minds at first had to mature and develop. Some ideas are still valid and some we had to throw away. We learned pretty quickly there were often technical reasons why things were done the way it does.
It became clear to us pretty fast that we really had to be careful around who and how we engage with the industry. The market is overwhelmed with offers from marketeers, graphical designers, community mods and whatnot. And a high degree of these offers is either scam attempts or low-quality services. Just being skilled enough to see throw all their dust deserves a learning curve all by its selves.
Second observation centered around how HAGLY token could be used as a payment for our utilities. Let’s say we created a simple utility and ask for HAGLY tokens as payment. The buyer is then “forced” to become a holder of HAGLY for being able to buy access to the utility. The problem occurs when the Dev team need to cash out to pay for any cost. The first buy creates a higher price floor which someone else most likely take advantage off. And when the dev team then are going to cash out it become eminent that we will lower the price of our token. That’s not doing any good is it?
In addition, we have the problem of changing the price of the utility as the price of HAGLY varies so much. All because HAGLY is still a low cap token.
Where does it leave HAGLY then? What function should it have. I’ll get back to that.
These findings gave us a different view on how we should approach the project and opened up a totally different discussion around the HAGLY token and the way forward. The next chapter will in almost chronological order take you through some of our discussions with conclusions and actions we have taken.
DEFI and HAGLY
Decentralized Finance (aka DEFI) implemented in Smart Contracts was our entry point with our token. The built-in functionality gave us a fast start into providing DEFI mechanics out of the box. As a beginning it was the right thing to do. But fact is that everybody cannot be the market leading Launchpad, Exchange, Swap, MarketPlace, Lender & Borrower, Bridge or whatever. Being just another exchange with low exchange volumes will not make anyone happier.
The built-in mechanics gave us pretty good distribution of the supply and we did not get eaten up by trading bots either. In addition, the reflection mechanics gave long term holders a great return based on each trade being done. The HAGLY Token is a utility on it’s own but it does not stand out over the competition so it left us with an open question around what purpose will it have going forward.
“Coins are currency and tokens are securities”.
It took some time before we really embraced what this quote really means to our project.
Looking ahead we think that HAGLY Token will have less importance as a currency and more importance as a distribution of shares and dividends among holders. More like a store of value. Investors that want a share of the revenue generated from the services of the project simply needs, as a minimum, hold a bag of HAGLY tokens. It does not mean we are leaving HAGLY behind. It only means that we will focus more on the revenue generating services. We will keep the Telegram open and active for new investors that wants to join us and we expect the number of HAGLY holders will grow naturally as a consequence of the build out of new services.
Expansion and taxes
As announced some weeks back we are taking the first steps in navigating towards the future with our changes of taxes. Taxes are a good thing in the first phases of the token lifespan but also creates some challenges for possible market expansion. Let me explain.
Most of the major centralized exchanges does not write every transaction to the blockchain. Some don’t even let you own real assets at all but that’s a different story. That means that they are not so happy about these taxes controlled by the Smart Contracts. Because it brakes their trading functionality and can create confusion for the holders. All transactions on an exchange are usually without any other taxes than the exchange rates set by the exchange. The trader is getting used to this and are often in believe they hold a position which can be used for buying services from the project. They can but not without initiate a transfer of the tokens out of the exchange and into a web3 wallet like Metamask or TrustWallet.
At this transfer the transaction is actually written to the blockchain and the trader will then be taxed by the rules of the Smart Contract. It’s easy to get lost here.
Bottom line. If you plan to get listed on any major exchange your taxes should be at a low level not to trigger a huge value discussion when moving in and out of the exchange. And secondly, not using the token as a payment for the services simplifies and remove some confusions. If someone want to leave the exchange and move their coins onto the blockchain they do it because of the opportunity to receive additional rewards.
Access and Reward
So, what then if HAGLY will not act as payment for the service?
Let’s start with the currency for buying access to the services in the project. As described earlier we do not believe in using HAGLY as a base currency for payments. It is way more effective to use a more neutral currency we easily can exchange into stablecoins. Since our project launched on Binance Smart Chain the natural choice of coin is BNB. It is way more stable and price impact is relatively low.
To be transparent for all investors we are working on a defining a fixed split of all future BNB revenues from services within our project. We definitely need a share that goes to devs and operations but a good share of it will be dedicated to increasing liquidity in the HAGLY Token and a to feed a clever new Reward system we are constructing. More to be announced around this going forward
What we can say so far is that we do have 4 unique services in development. With even more on the drawing board. As promised earlier they will take a different approach to trust and transparency for both the investor and the owner. Too many of today’s projects are focused on the security of the Project team. We believe it’s time to set more focus on the security for the individual investor. It can simply be done a lot more transparent.
Among the use-cases and technologies we explore we cannot leave out NFT technology. They really have some strong capabilities that we are evaluating using as a base in our Access and Rewards domain. We do not currently look into the art NFTs but it is definitely some interesting connections between collectible NFTs, utilities with income and an established token economy. Just look at where BAYC is going with its APE coin. We may all end up in the Metaverse at the end? Time will tell.
Detailed news about the services and utilities will come in separate announcements.
Not a big thing for us right now but we do have our eyes on it. And this expansion become a lot easier for us when we made this shift in strategy for the payments. Alowing ETH instead of BNB is not a big deal really.
Our services and utilities (aka DAPPs) development supports multiple chains and we have also selected a backend provider that supports a wide range of blockchains. It is rather a question about which utility make sense to migrate.
We briefly want to mention it as part of the future vision for The Hagly Project. It may become eminent that the best way to scale a project into new domains is by seeking partnership with another project. Nothing in plan right now but if someone with honest intentions approach us we are willing to listen.
The HAGLY Project are from a commercial standpoint still in a very early stage. We are so happy that our current holder is still with us and holds a rock-solid base for our common future.
We may continue to use Medium articles as a way of communicating the changes we are doing to the roadmap. It is far easier for us to maintain than the “official” roadmap. We still need to have an update of the roadmap too. A good timing would be after we have delivered our first utility and are ready for the next one.
Next up is a series of small and big announcements. Stay tuned and do not forget to recruit new friends to The Hagly Project. We are here to Stay!