Sun Yuchen announced the launch of the decentralized autonomous organization HTX DAO, and yesterday (22nd) he announced that the Huobi team has destroyed all of its Huobi platform currency, HT.
After the sudden occurrence of a DDoS attack on the Huobi exchange, Sun Yuchen assured users that their funds are safe.
Background: Huobi exchange announced a name change to “HTX” to avoid trademark disputes.
Table of Contents:
Huobi announces cooperation with HTX DAO
Huobi team destroys all HT, causing a 7% surge
What is HTX DAO?
Token Economics
Participating in Governance
Justin Sun, founder of TRON and head of HTX (Huobi) exchange, officially launched the decentralized autonomous organization HTX DAO on January 19th, claiming to give Huobi a second life and transform it into a “people’s exchange.”
Huobi announced its collaboration with HTX DAO on January 19th and released a series of new plans. Huobi also stated that it will donate 50% of its platform revenue to the liquidity of HTX DAO. Additionally, Huobi encourages holders of the original platform currency, $HT, to convert it to $HTX. Detailed information about the token conversion was released on January 20th.
On the evening of the 22nd, Sun Yuchen announced that as part of the HTX DAO launch plan, the Huobi team has destroyed all 41 million $HT tokens (worth approximately $78.31 million) that they owned.
Inspired by this news, HT experienced a surge of 7.6% amidst a declining overall market led by BTC, with a current price of $1.98 at the time of writing. However, it is worth noting that the price of HT dropped significantly after the HTX DAO project was announced, and it would need to increase by at least 20% to return to its previous level.
What is HTX DAO? According to the official whitepaper, HTX DAO is a decentralized autonomous organization, where HTX represents three meanings:
– “H” represents HTX exchange, which has the most significant contribution to the liquidity of HTX DAO, indicating its importance within the HTX DAO ecosystem.
– “T” represents the TRON public chain, which serves as the technical foundation for HTX token.
– “X” represents change and potential, integrating the core concept of the platform’s vision. Additionally, “X” represents a large number of esteemed projects that lay the foundation for the HTX DAO ecosystem.
Token distribution:
The initial total supply of $HTX is 999,990,000,000,000 tokens. Among them, early contributors and public distribution account for 19%, community direct access plan accounts for 19%, developer funding accounts for 10%, research and development accounts for 10%, ecological support accounts for 10%, partners account for 15%, and platform development accounts for 17%.
While HTX DAO emphasizes that $HTX shares the same name as Huobi (HTX), it is neither the platform currency of Huobi nor an upgraded version of $HT. However, in the future, HTX will replace all the existing benefits of HT on the Huobi exchange, effectively replacing HT.
Furthermore, although holders can initiate proposals and vote within the community, the official statement clarifies that the implementation of proposals and voting is not guaranteed. The support of the development team, a comprehensive code review, and deployment by multiple signatory administrators are required for the implementation of proposals. This means that the development team ultimately holds the final decision-making power.
Despite Sun Yuchen expressing grand visions for HTX DAO’s future and numerous crypto KOLs endorsing it, stating that it is an excellent opportunity for Sun Yuchen to enrich investors and prove himself, it is still uncertain if HTX DAO will operate as envisioned by Sun Yuchen. There are also many skeptics within the community. Its future development will require continuous observation.
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