After the launch of the first HEZ reward distribution a few weeks ago, we’re getting ready to distribute Round 1 of HEZ tokens to early adopters of the Hermez Network.
The Hermez Community Rewards program is part of the promotion of our Proof-of-Donation decentralised consensus protocol, which states that 30% of the coordinators’ bids in our mechanism will be used to reward Hermez Network users.
Proof-of-Donation also states that 40% of this value will be donated to Gitcoin to fund the development of Ethereum public goods. The remaining 30% will be burnt.
Hermez Community Rewards Program – Round 1
A total amount of 200,000 HEZ tokens will be assigned as user rewards at the end of Round 1.
The value received for each user will be proportional to the total amount of funds deposited during the period.
Round 1 of the program will begin on June 21st 2021 at 10 AM UTC, and it will end on June 28th 2021 at 9 AM UTC.
In this initial round, the mechanism is the following:
- HEZ tokens will be distributed to addresses who deposit tokens into the Hermez Network, proportionally to the USD token value of the deposits.
- At least two transfers need to be executed during the 7-day period (round).
How To Participate
1) Make a deposit in the Hermez Network (wallet.hermez.io).
Distribution will be weighted by the USD value amount of tokens deposited. Deposits done before the 21st of June will qualify for Round 1.
2) Execute at least two Layer 2 transfers between Hermez accounts, using the “Send” function. The two transfers must be executed before June 28th 2021 at 9 AM UTC in order to qualify.
Bear in mind:
- The rewards will be assigned linearly during the 7 days of the Round 1.
- Users that keep their deposits throughout the duration of the whole Round 1 will receive more rewards than users that deposit later or withdraw earlier.
- Any deposits or withdrawals during the round will modify the user reward and the overall estimated reward per user, since it’s calculated as a percentage of the total value at every moment in the network.
- There is a current integration with Bitfinex and AscendEx to deposit and withdraw USDt and HEZ into the Hermez Network. Other exchanges are also preparing this Hermez integration to provide access to their services.
- Please remember that both deposits and withdrawals will incur in gas fees, as they require interaction with Ethereum Layer 1. Gas fees will vary depending on Ethereum’s congestion.
- The HEZ token has a boost of 2x factor in value for the reward calculation.
- The rest of the tokens will have a factor of 1x (ETH, USDt, USDC, DAI, WBTC, WETH, XAUt, UNI, SUSHI, COMP, BAL, AAVE, YFI, LINK).
- The calculation is done by converting the daily value of each token to USD and calculating the percentage for each user over the total network users deposit amount over the 7 days of the round.
If Bob deposits 1 ETH and 1,000 USDT, the system will calculate that he has a value of $3,500 (at the time of writing).
If the total deposited value of the network was around $3,5m, Bob would be receiving 0.1% of the rewards.
Of course, this value will change over time as new deposits and withdrawals happen in the network.
Checking Rewards Using the Hermez Network
The rewards will be distributed automatically to all addresses that qualify at the end of Round 1.
Users won’t have to take any action to receive the tokens, beyond the deposits and minimum transfers explained above.
Using the Hermez Network interface, users will see in real time:
- What the current round is.
- Whether they have made any deposits.
- Whether they have done the minimum of transfers required.
- Estimated earnings in the previous days in the round.
- Estimated future reward according to the value of the user account and the overall value in the network. This will be changing over time depending on the user's activity.
In case that there’s any issue with the HEZ distribution, please go to our Discord server and write to us on our #support channel.
Only use the Support channel for these issues. Please, don’t spam other channels or send DMs to the Hermez team members.
Users that exhibit spamming or malicious behaviour will be banned, and their addresses might be blacklisted from future rounds of the Hermez Community Rewards program.
Rewarding Early Adopters
After this first step and the internal analysis of the campaign, future rounds will be enabled to continue rewarding early adopters of the Hermez Network.
With this distribution, we aim to fulfill our promise of creating an open financial system that brings prosperity to all its participants and the whole ecosystem.
Do you want to get more involved with Hermez?
We have launched the Hermez Ambazzadors Program!
We’re looking to form a multilingual, global team of community members to help us spread blockchain and zero-knowledge tech around the world. If this sounds interesting to you, please fill in this form.