HNY appears to be issued at regular intervals by an automated contract, partly distributed to members based on participation via SourceCred and partly held in the 1hive DAO treasury. H NY held in these two ways appear to interact as follows:
- Members can propose to spend the HNY held in the DAO treasury in proposals
- Members can take their individually held / deposited HNY in support of proposals, but receive this stake back after the proposal closes (whether passes or fails).
Did I get that right?
HNY then acts as a governance token, but is also openly traded on the market, both on xDAI in Honeyswap and on Mainnet on Uniswap in bridged form, and others. Therefore, the value of HNY could increase based on the management of members, but in a decentralized way: all HNY members have the opportunity to add value, by contributing more, posting more, and also earning a larger share of the regular distributions.
However, most HNY holders could sit back, and let a core group of contributors (aka the “managers”) add most of the value to the ecosystem. So it seems this is an uncharted area with no clear rules, e.g. of 90% of proposals come from 5% of the members. If a judge looks at the HNY community, and it seems like there’s a lot of participation by different people, maybe it’s not a security. But otherwise, it is. It’s like the old joke about porn; no one can define it, but you’ll know it when you see it.
This decentralized / democratic management appears to get around the tricky 4th Rule of the U.S. 's SEC Howey Test, to determine if a membership interest of an organization is legally a marketable security and needs to be registered and regulated by the government.
I’m asking, because I’m interested in creating a new swarm for affordable community governed housing, and I’d like the membership share price to be determined by the market, and also to encourage and reward as much user participation as possible. In a typical company, like if you held shares of TSLA stock, even if you wanted to and had a great contribution, there’s no clear way for your contribution to be accepted and increase TSLA stock value.
Any feedback or thoughts appreciated.