Originally in 2018 Hydra was designed as a component of LockTrip (LOC), which was later decided to be unpegged and separated as a standalone project. This essentially means HYDRA is a blockchain that was developed by a team that had a unique practical usage perspective as a DaPP developer first. A unique perspective that has put the focus on critical economic limitations of existing chains and made it possible for next-generation block economy to be iterated.
The decision came through a community vote. The LockTrip community evaluated HYDRA as an extraordinary project with unique economic and technical capabilities and far too big potential that deserved to be unpegged and put on its own independent trail.
In this context, Hydra Chain has been financed and developed by the LockTrip team and community, the distribution of the HYDRA coins will happen to LOC holders proportionally to the amount they hold, over a gradual 12-month process. The launch of the blockchain is planned in three stages, of which each is described briefly below.
Initiates with the launch of mainnet. The blockchain will initially be supported with core nodes and thus will start off as a decentralized and permissionless network, which due to the consolidated amount of HYDRA, will be characterized with relatively centralized staking power. This will be for a period of 3 months. During this time period, the external infrastructure will be set in place, such as exchange integrations, wallet integrations.
In order to support on-chain transactions, a small supply of HYDRA coins will be available on exchanges for purchase immediately after the main-net has been launched.
An open order book liquidity event will be held to offer 150,000 HYDRA to exchanges. The purpose of the event is to
Establish the market-driven price of HYDRA
Provide access to HYDRA for GAS purposes
Allow users to get an idea of how staking works with HYDRA
Stage 3 represents the main phase in terms of HYDRA coin distribution and gearing up the transactional activity on-chain. Over a period of 50 weeks, HYDRA coins will be airdropped to LOC holders on a weekly basis (2% per week), with a new snapshot being made each week.
For example, a user owning 10,000 LOC tokens at the time of the weekly snapshot, will receive 10,000 HYDRA x 0.02 = 200 HYDRA for that particular week. And the process will be repeated until 100% of HYDRA’s total 18,585,933 supply is distributed entirely.
The start of the Airdrop is scheduled to begin in the second half of March 2021.
In order to incentivize HYDRA coin owners to stake their coins, the inflation during this period of transition will naturally be higher due to the overall lower network weight (described in Staking Income). The staking power of the community will grow gradually as the airdrop progresses and the staking weight of the company nodes will be reduced to allow for the community to slowly take over.
The transition towards complete decentralization will happen during this stage.
The final stage marks the completion of the migration process. With the airdrop of HYDRA coins being finalized, both the transactional economy as well as the staking weight of community nodes will reach its natural trajectory.