Hifi DAO

Summary

It is proposed to:

1. Renew the service contract for another two-year term, under the same structure and terms as the original agreement. The service provider will remain Mainframe Group, Inc., with an effective date of December 1, 2024. This includes allocating 25 million HIFI tokens, vesting linearly over the two-year contract.
2. Deploy one final market on Hifi v2 that will expire on June 27, 2025, ensuring seamless borrowing and lending services for the community until the full transition to Hifi v3 is complete.

Background

In HIP 2, Hifi DAO established a two-year service contract with the service provider, Mainframe Group, Inc. During that period, we made significant progress—most notably delivering on Hifi v2, expanding to real-world asset (RWA) lending, and laying the groundwork for Hifi v3.

As the existing service contract has reached its conclusion, the time has come to renew the contract for two more years. Additionally, to aid the transition to Hifi v3, there is a need for one final market on Hifi v2 to cover the period leading into Hifi v3’s mainnet debut.

Problem

1. Expiring Service Contract: The existing service contract expired on December 1, 2024. Without renewing it, the community risks losing key contributors responsible for day-to-day development, security audits, business operations, and protocol maintenance.
2. Bridging the Transition to v3: Although Hifi v3 marks a major leap in protocol architecture and revenue potential, it requires additional development, auditing, and a phased release. A final market on v2—expiring June 27, 2025—ensures no disruption for current and future users while the community prepares for the full v3 rollout.

Solution

1. Service Contract Renewal

• Duration and Terms: Renew for two additional years, effective December 1, 2024, through December 1, 2026.
• Token Allocation: 25 million HIFI tokens, vesting linearly over the contract period.
• Scope: Continued development, protocol enhancements, community engagement, marketing, administration, accounting, business development, and legal services.
• Hifi Total Supply will increase linearly over the contract period from 146,250,000 to 171,250,000.

This renewal provides the stability and resources required to maintain existing protocol operations and drive Hifi v3 to market. You can access the full legal agreement here.

2. Final v2 Market Deployment

• New Market Maturity: June 27, 2025
• Purpose: Enable users to continue borrowing and lending via Hifi v2 as the v3 codebase is finalized, audited, and deployed.
• Phased Transition to v3: Once Hifi v3 is live, users will have the option to migrate or roll over positions from v2 to v3. The final market’s expiration ensures that outstanding positions can settle naturally while Hifi v3 adoption ramps up.
• hToken: 0x97567E94c6Bb434192fC270f19ccda0e9290b231
• Corresponding AMM Market: 0x196e5211979DaDa26614875D3698a1fDFC3f3Db4

Conclusion

This proposal addresses two critical needs at once: providing continuity and resources for the service provider, and ensuring uninterrupted borrowing and lending through a final v2 market while the community transitions to Hifi v3. With the renewed service contract, Hifi DAO secures the talent and focus required to execute on its vision. And by deploying a final v2 market, we maintain seamless liquidity for current users until Hifi v3 launches in full.

We encourage all token holders to participate in shaping the future of Hifi DAO.