Mainnet Migration and Economic Adjustment Strategy

Dear Hydra DAO Members,

As we prepare for the highly anticipated launch of our new Hydra Mainnet, several vital steps are being proposed to ensure a smooth migration and to adjust our economy for the exciting events ahead.

Economic Adjustments and APR Reduction

The new Hydra mainnet introduces a completely redesigned economic framework focused on enabling high APR for vested positions while limiting unconditional inflation for unvested and short-term positions.

To stimulate economic activity and prepare for the transition to the new mainnet, it is proposed to reduce the current unconditional inflation on the legacy HYDRA mainnet from the current APR of approximately 31%.

This reduction is essential to manage inflation, strengthen the economy, and enable a smoother migration across the ecosystem. The schedule for the APR reduction is as follows:

3 Halving Events

  • Halving #1 : First Week of August 2024**: Reduce System Inflation to 10% - would yield ~ 15% actual APR due to the lower relative circulating supply

  • Halving #2: First Week of September 2024**: Reduce System Inflation to 5%, which would yield a ~ 7.5% actual APR due to the lower relative circulating supply

  • Halving #3: First Week of October 2024**: Reduce System Inflation to 2.5%, which would yield a ~ 3.75% actual APR due to the lower relative circulating supply

  • HydraGon Mainnet Migration: Reduce System Inflation to 0%. Once both Mainnet and the Bridge for asset migration are enabled, further reduce the APR on the legacy Hydra mainnet to 0%. This step ensures a natural incentive for everyone to transition to the new platform. Additionally, setting the APR to 0% ensures that as supply flows out of legacy HYDRA, no boosted APR will occur due to reduced staking activity, which could potentially hinder the migration.

Impact on Emissions and Boosted Economy
As per current explorer data (, there is currently 24.5M HYDRA in circulation.

When we factor the ~31% APR, this means staking emissions distributed to all stakers are currently in the 7.6M HYDRA per year/20,808 HYDRA per day.

As a consequence of the halvings, the new emissions will be adjusted to:

Halving 1 : Decrease from 7.6M to 3.8M HYDRA per year (down to 10,404 HYDRA per day)
Halving 2 : Decrease from 3.8M to 1.9M HYDRA per year (down to 5,202 HYDRA per day)
Halving 3 : Decrease from 1.9M to 0.95M HYDRA per year (down to 2,601 HYDRA per day)

As a consequence of the third halving, the emissions will be relatively close to what the unvested HydraGon emissions will look like and from which point onward, emissions will be throttled automatically based on price performance and the self-aware HydraGon Consensus.

Needless to say, the new unvested economic model of HYDRA intends to rebalance supply vs demand and makes obtaining HYDRA via staking a lot more difficult - 8x times more difficult compared to now to be precise.

As timing, Mainnet will most likely be prior or similar to Halving 3, but the migration pathway via the new upgraded bridge will be enabled shortly afterward only after all auditing is completed.

Ensuring Security on Legacy HYDRA

To maintain security and stability on the legacy Hydra mainnet following the APR reduction, it is proposed to utilize company staking pools. This will reinforce the network’s security for at least one year after the APR reduction to 0%.

Coordination with Exchange Partners

Efforts are underway to sync with exchange partners to facilitate a seamless migration to the new chain. This coordination will ensure that the appeal of Hydra Staking remains strong across staking pools on exchanges, further supporting a smooth transition for all users. The team will make every effort to sync the launch, although some delays may be possible as exchanges may be less agile in upgrading immediately. Regardless, since legacy HYDRA will be redeemable 1:1 to new HydraGon Mainnet HYDRA, even if old pairs continue trading for an extended period, they will remain relevant and usable via the bridge that will enable migration/swapping to HydraGon HYDRA.

Technical Application of the APR Reduction

Version 0.20.20 has been released, containing a critical upgrade that ensures node compatibility with the APR adjustments. This upgrade empowers the underlying legacy Distributed Governance Protocol (DGP) and allows for one node release to support all future APR reductions. Nodes that do not update will be unable to accept the newly proposed reduced APR. It is vital to update ahead of the activation to ensure smooth staking and a smooth transition with the upcoming events.


The proposed steps are essential to ensure a seamless transition to the new Hydra Mainnet while maintaining economic stability and network security. The community’s support and understanding are crucial as we embark on this exciting new chapter.

Action Required:

  • Approval of APR Reduction Schedule: Vote to approve the proposed schedule for APR reduction.
  • Security Strategy Approval: Vote to approve the utilization of company staking pools for network security.
  • Exchange Coordination Strategy: Vote to approve the strategy for coordinating with exchange partners.
  • Node Update Compliance: Vote to mandate node updates to version 0.20.20 for all network participants.


  • Hydra Node v0.20.20 Release
    (Release is flexible for adjusting APR via DGP, but the change will not be effected unless DAO approves it)

Thank you for your attention and participation in this crucial decision-making process.

This proposal outlines the necessary steps and seeks approval from the DAO to ensure a successful transition to the new Hydra mainnet while maintaining economic stability and network security.

It will also massively cut emissions which could strengthen the project on its own.


Sounds like a great plan :saluting_face:

Where is the voting address?


If the post gets a few more likes and overall positive discussion/interest, Myra may elect it as an active proposal.


I love this and will definitely vote yes on this. These are necessary steps for a smooth transfer for the mainnet. Please make this as an active proposal already :smiley:


I think we all want, and even need this proposal to get through. Reducing inflation using this method will ensure a very bullish scenario right before HydraGon launch date on mainnet, and that’s the best we could hope for.
Many new people will hear about Hydra by then, will see the pump, will check historic prices, and FOMO starts right after.


This is definitely a no brainer proposal.

Reduced emissions / reduced Inflation, lesser emissions floating in the market, then the migration causing a decent supply squeeze

1 Like

Will prepare and put this proposal up for a vote in this week.

Personally I like the schedule and the other aspects of the proposal too!