Playing Defense: Protective measures programmed into the HOM Protocol

HOM DAO plans to include four specific defensive measures in the HOM Treasury that are unique to the protocol, including:
  1. 1.
    Length of Bonding Contracts: Bonding contracts for HOM-NFTs are much longer (generally measured in years) than bonding contracts for most crypto projects which are measured in hours/days.
  2. 2.
    Rebasing of Treasury on Quarterly Basis: The real estate treasury reserve requirements of HOM will be rebased every quarter to be no less than 25% of the token price. This is vastly higher than the $1 USD per token requirement of other protocols including Olympus DAO-based forks. With a vastly greater reserve requirement in place, there should be a greater defense against a “bank run” scenario against the HOM treasury in a sell off. Real estate reserves can include properties owned by the DAO and loans held in the various HOM DAO trusts in countries around the world.
  3. 3.
    Greater Incentives for Longer-Term Contracts and Disincentives for Early Withdrawal: HOM is unique in that it provides enhanced rewards to longer-term contracts. Early withdrawals will affect staking awards, much like an early withdrawal penalty.
  4. 4.
    Redemption of HOM Token Sales to Treasury: When selling a HOM token, the smart contract is designed such that either 5% of the sales price will be retained by the HOM Treasury. For example, if the token owner sells their HOM token for 50 USDC, 2.50 USDC is collected and retained by the treasury. This creates an additional buffer designed to stabilize the treasury in a sell-off scenario. It also ensures additional liquidity for the treasury to bond and acquire more real estate assets.