June 26, 2024 6:30 AM

Evolution of ISLM Tokenomics 2.0: A Journey Towards Sustainable Growth

The tokenomics journey for most successful web3 projects is rarely a straight line. Responsiveness and adaptability are key to creating a sustainable token economy that benefits the entire ecosystem. At HAQQ, we have embarked on a path of continuous improvement, refining the ISLM tokenomics to ensure long-term stability, utility, and growth. This evolution, driven by a series of strategic proposals, marks a significant shift in how ISLM functions within our ecosystem.

The Current Landscape of ISLM Tokenomics

Before diving into the recent changes, it's essential to understand our starting point. ISLM, the native token of the HAQQ Network, has a current circulating supply of 876,226,722 ISLM and a total supply of 20 billion ISLM. The token has been utilized to secure the network through staking, provide liquidity in various pools on platforms like SushiSwap, Uniswap, and Osmosis, and support other ecosystem activities. However, with the dynamic nature of the blockchain space, adjustments were necessary to address emerging challenges and opportunities. This led to the introduction of several key proposals, each playing a critical role in reshaping the ISLM tokenomics.

Proposal 31: Enhancing Stability and Usability

To address market dynamics and ensure long-term stability, we introduced Proposal 31. Before this proposal, holders with large ISLM vested could convert their tokens into liquid ERC-20 tokens on vesting.haqq.network, a P2P marketplace. While this provided liquidity, it also introduced volatility and short-term market pressures.

Proposal 31 extended the vesting schedules for tokens unlocking post-January 1, 2026, by three years, effectively reducing the immediate supply entering the market. This move was aimed at promoting long-term holding and stability. We deactivated the vesting P2P marketplace to curb the speculative trading of vested tokens and incorporated packet-forward middleware (PFM) to enhance the user experience for cross-chain transactions.

Proposal 33: Introducing the United Contributors DAO

To further manage the ISLM token flow and instill confidence among long-term holders, we introduced Proposal 33. This proposal established the United Contributors DAO, a decentralized governance structure responsible for managing tokens held by founders, advisors, contributors, and team members. By transferring these tokens to the DAO, we ensure that no single entity could unilaterally influence the market by dumping large quantities of ISLM. All decisions regarding these tokens are now subjected to a governance vote by the DAO, promoting transparency and collective decision-making.

Proposal 34: Operationalizing the DAO

Building on the foundation of Proposal 33, Proposal 34 operationalizes the United Contributors DAO. With mainnet upgrade v1.7.6, the specified tokens were transferred to the DAO, effectively preventing any further pressure on circulating supply post-vesting and mitigating market volatility. This move reinforces our commitment to decentralized governance and long-term stability.

Expanding Utility Through evmOS Extension and Shariah Oracle

The integration of the evmOS extension marked another significant advancement. This consolidation of HAQQ Network's consensus layer and the EVM execution layers streamlines the ongoing development of the Shariah Oracle, allowing ISLM holders and stakers to vote and approve ethical dApps using the HAQQ wallet. This approach further enhances the utility of ISLM, enabling users to engage with a wide array of Shariah-compliant applications and services.

Stride Zone Proposal: Introducing Liquid Staking

Our successful proposal with Stride Zone will also significantly impact the way ISLM holders can utilize their tokens. Previously, ISLM holders could only engage in network staking, liquidity provisioning or trading on vesting.haqq.network without access to broader DeFi opportunities. With liquid staking coming to HAQQ Network, users will be able to stake their ISLM tokens and receive stISLM, which can be used across various DeFi platforms. Once our integration with Strize Zone is complete, ISLM users will no longer need to unstake their LP position and trade their ISLM for other tokens to access attractive DeFi opportunities. Instead, they can simply use stISLM to gain exposure to these opportunities.This integration not only increases the liquidity of ISLM but also opens up new financial opportunities for our community.

Expanding Use Cases and Future Prospects

The ongoing evolution of ISLM tokenomics goes beyond stability and governance, it is also about expanding utility. ISLM holders can already buy NFTs on Bazaar.Art, HAQQ Network’s premier NFT marketplace, and we have upcoming products like gold-backed stablecoins, tokenized Sukuk, P2P Shariah-compliant lending and others in our roadmap. These initiatives will provide more practical use cases, encouraging users to buy and use ISLM for their financial wealth-building goals while further enhancing the future of HAQQ through governance.

The evolution of the ISLM tokenomics reflects our commitment to building a sustainable, ethical, and robust financial ecosystem. Each proposal contributes to a more stable, transparent, and utility-rich environment, aligning with our mission to integrate Islamic principles with cutting-edge blockchain technology. As we move forward, HAQQ is focused on offering our community even greater value and opportunities, ensuring that ISLM remains at the forefront of ethical blockchain innovation.

Build on HAQQ

Are you passionate about building ethical DeFi solutions? We're inviting builders to join the HAQQ ecosystem with hands-on support and funding opportunities from our $40 million ecosystem fund. Connect with us and be a part of shaping the future of ethical finance.

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