On August 14, the 18th session of HTX DAO (DAO friends, please stay) centered on the theme 'Behind the Upgrade of the HTX DAO White Paper: How Institutional Experiments Evolve into Real Paths?' It invited HTX DAO Core Builder Liu Ye and crypto KOLs like Helium to discuss key issues such as core adjustments of the HTX DAO white paper, challenges of institutional implementation, enhancing community participation, and responses to compliance, exploring the future of on-chain financial governance and the development direction of $HTX.
Behind the update of the white paper
The HTX DAO white paper has recently been updated. This is not just a textual update, but a milestone declaration of direction—starting from exchanges and moving towards the core power of on-chain financial governance, creating a user-led financial free port, allowing every participant to simultaneously have decision-making rights and profit rights.
It is reported that the updated white paper refines the early abstract concepts into specific, actionable plans, clarifying the scope of governance authority and specific cases, allowing the community to better understand the project's practical path and development direction.
The new version of the HTX DAO white paper clarifies that the long-term momentum of the DAO comes from a clear design of governance incentives, treating user behaviors such as voting, trading, staking, and content creation as governance contributions, and forming clear incentive feedback through points, airdrops, and profit returns. At the same time, ecological units such as Huobi HTX and TRON provide feedback to the community through burning, repurchase, and airdrops, constructing a positive cycle of 'participation—profit—re-participation,' encouraging more users to engage in governance and continuously enhancing the vitality and ecological attractiveness of the DAO.
On this basis, the governance boundaries of HTX DAO will extend to a broader ecological field: including granting governance rights to modules such as Launchpad, Launchpool, and on-chain wealth management; exploring DAO control entrances for new financial sectors such as RWA, LSD, stablecoins, and cross-chain bridges; promoting on-chain cooperative projects to gain traffic and distribution resources through HTX DAO governance. Ultimately, HTX DAO will gradually develop into a 'financial sovereign harbor' governed by global holders, enjoying real value, dividends, and belonging on-chain.
In the live broadcast, Liu Ye frankly stated that the direct reason for updating the white paper was that when applying for compliance in exchanges in Europe and the United States, external reviews prompted the team to re-examine the white paper, discovering that early content was somewhat vague regarding the integration of the DAO and decentralized exchanges, lacking concrete and actionable explanations. On the other hand, the team has developed a clearer understanding of the governance mechanisms, implementation paths, and future plans of the DAO, necessitating an update to the white paper to reflect these changes. For example, the economic model has been adjusted from a 'liquidity donation' model to a 'quarterly destruction' mechanism in Q3 2024—adopting a strong deflationary model, using 50% of the platform's revenue for repurchase and destruction of $HTX on a regular quarterly basis.
She emphasized that the white paper, as a standard for blockchain projects, not only needs to carry the team's latest thoughts, adjustments, and practical paths but should also provide authoritative and comprehensive information sources, allowing users interested in the project to clearly understand its development direction and strategic adjustments.
In this regard, Helium believes that HTX DAO is a grown-up DAO, possessing the properties of a 'scales' tool, combined with a modular operating model, forming its core dimension. Bluebird Club member Jing Yi believes that the white paper reflects the idea that 'users are participants, and participants are beneficiaries,' which can effectively mobilize the enthusiasm and initiative of community members.
Adhere to long-termism
During the live broadcast, Liu Ye discussed the development of the voting recommendation mechanism, pointing out that it is essential first to clarify what problem this mechanism is intended to solve and what actual benefits it can truly bring to users; secondly, it is also necessary to design a reasonable incentive system to attract and retain long-term participants.
She emphasized that the voting mechanism, like long-term projects, will inevitably go through periods of fluctuation—sometimes experiencing high enthusiasm and sometimes hitting bottlenecks. The key is to adhere to long-termism, continuously solve problems that arise in the process, and view the entire governance process with a developmental perspective.
Liu Ye further stated that enabling users to continuously benefit is not about generating popularity through one or two rounds, but about perfecting mechanisms over a period of one or two years to create a successful governance system. In the next 6-12 months, the focus will be on promoting three major areas: verifying the effectiveness of the voting mechanism; establishing a treasury and points system to visualize contributions and profits; and opening up developer permissions on the official website to form a DAO co-built by all members, combined with points incentives.
Seeking a balance between compliance and decentralization
In response to media questions about 'how HTX DAO seeks to balance compliance and decentralization,' Liu Ye stated that HTX DAO has regarded 'long-termism' as its core philosophy since its inception. In the context of the current constantly changing global regulatory environment, this philosophy is particularly important. She believes that when capital and regulatory forces are both focused on the cryptocurrency industry, it means the industry is moving towards broader social acceptance and must inevitably head towards compliance. Therefore, HTX DAO's attitude is always to actively embrace and plan for compliant development.
She pointed out that many people have misunderstandings or even concerns about compliance, but essentially, laws and regulations are important mechanisms to protect the rights of the majority and maintain fairness and stability. For HTX DAO, this is not only a challenge but also an opportunity to develop in a healthier and more sustainable manner.
However, the ideal of decentralization is not achieved overnight. Liu Ye admitted, 'The team's initial understanding of decentralization was a bit too 'loose', thinking that the DAO was just about letting everyone speak freely and vote on decisions. But practice has shown that most people's votes only represent intentions, which may not be professional and can even be swayed by emotions, not aligning with long-term development rules.'
To this end, HTX DAO has adopted a 'pilot' strategy—first verifying governance mechanisms and product plans on a small scale, then gradually expanding the size. This approach can both discover and correct potential problems, and find a balance between safety and efficiency. Liu Ye emphasized, 'In the short term, certain phase decisions may not be fully decentralized, but as long as the direction is clear and we stick to the belief of ultimately achieving decentralization, we can have no regrets.'
Liu Ye concluded that the DAO team possesses strong resources and experience reserves. The core builders of Sun Yuchen's team have experience in global compliance, financial innovation, and the implementation of blockchain applications, providing solid support for HTX DAO to respond to international regulatory changes. In her view, compliance and decentralization are not opposites, but two parallel paths for HTX DAO to mature and enhance its global competitiveness.
About HTX DAO
As a decentralized autonomous organization (DAO) deployed across multiple chains, HTX DAO showcases an innovative governance model. Unlike traditional corporate structures, it employs a decentralized governance structure composed of diverse groups, all committed to advancing the success of the organization. Its unique ecosystem advocates for open values, encouraging all ecological participants to propose suggestions that can promote the development of HTX DAO.
