Publishing HEX is Free Speech

Changes 0.4.19

Today, Richard Heart aka Richard Scheuler — allegedly wanted by Interpol, for questioning over potential tax evasion involving billions of dollars — allowed the so-called "OA" entity to stake more than 250 Billion HEX on Ethereum, essentially reducing future payouts for all long term stakes on Ethereum to very neat their minimum possible yield output.

Changes v0.4.0 - 0.4.18

0.4.0 <= complete rewrite using Wagmi framework for better performance and network compatibility

• 0.4.18 Fixed HEX/USDC price lookup on Ethereum due to HEX Graph service sunset
• 0.4.17 Fixed EES penalty calc bug where it wasn't including 100% of BigPayDay in some cases
• 0.4.1 to 0.4.15 UI Tweaks & bug fixes

Don't like the new wording?

We're not sure we do either!

You can append ?lang=original to the URL to revert to the good old days. Or append ?wording to the URL and switch to either version using the selector, top right of screen.

How Best to Phrase the Truth?

This started as a re-think to avoid the tainted words "stake" and "staking" because, well yo know, the SEC in the USA has completely lost the plot! I get it. Keep people safe from themselves, like we're all little babies without brains to think for ourselves. But far out Gensler! Seriously?

Anywho ...

Background

HEX uses the word "stake" to mean "time lock". In fact, it's just a promise you make to yourself with no third parties involved. Only you can mint your HEX. No one else. Thus, when you do mint HEX, you are really just publishing the fact on the blockchain with no input or expectations from others what-so-ever. This is far from "staking" in the form where one gives their coins to some third party in hopes of getting more back, let alone any! We stand with Gensler on the latter front. Huxters! Scammers! :P HEX isn't that though. Not even close. It's new. HEX is genuinely novel. Granted, it takes a brain cell or two to understand this fact. Shout out again to our friend Mr. Gensler at the SEC of the USA like OMG, WTF? :/

DRAFT Proposal

Preamble

The creation of new HEX.com tokens comes about when YOU publish new data on a blockchain. There is no reliance on any other entity. It's just you and the contract. You decide an amount of HEX you already control to burn (destroy) choose a number of days between 1 and 5,555, as a contract term and publish your commitment on the immutable public blockchain. Then, you simply wait for those days to pass. All the while YOU decide if and when to take action to publish evidence of your own actions. Your only duty is to yourself as witnessed by the smart contract and published publicly, by you or not at all. You prove you kept your promise (or not) by publishing new HEX tokens on the blockchain — or not.

HEX is Free Speech

There is no compulsion to publish new HEX tokens or indeed any practical means of preventing the same.

New HEX tokens are published in a public immutable blockchain as a matter of free speech by freely acting individuals on their own accord if and when they so choose. Much the same as an author brings new material into the world — from their own mind; from thin air — so too are new HEX tokens conjured into existence by free individuals, when and if they desire. The rules of the smart contract are the same for all users and cannot be changed.

About this Decentralized Blockchain Application (dApp)

HEXmob.win aka go.TShare.app is an independently designed and produced HEX.com (no affiliation) user interface.

This version (0.3.x) employs new phraseology around the HEX.com smart contract. The idea is to more closely match what actually happens when interacting with the contract, along with a casual attempt to align with existing accounting and taxation phrases, if and when applicable.

The Life Cycle of a HEX Smart Contract Term

The following text is a work in progress.

You DESTROY (burn) HEX

• You — and only YOU can do this — DESTROY ("burn") HEX tokens to DEPLOY a new "mining" contract with a TERM you decide, specified in days.

• At some future date YOU may execute contract code to cause the HEX.com smart contract to PUBLISH (conjure) pristine HEX into existence for you and the world to see. No one else is involved. Just you and the HEX.com contract computer code.

Each contract term holds a RESIDUAL value at the time of HEX PUBLISHING

• The RESIDUAL value is computed by the smart contract at time of publishing (or early forfeit.)

• If PUBLISHING occurs after and within two weeks of the contracted TERM, then the RESIDUAL value equals the contract's initial HEX COST (burn).

• The contract is FORFEITED if publishing is performed prior to the end of the agreed TERM whereupon penalties are subtracted from the RESIDUAL according to immutable contract rules.

• There is an additional 1% per week forfeiture penalty if you fail to publish your contract results within the first two weeks after term end. This penalty is calculated over the total now forfeited value of the contract up to the end of the two weeks grace period.

Using the above terminology, a sort of "token balance schedule" at the time of HEX publishing could look something like this ...

- Miner COST
+ Mining YIELD
+ BigPayDay bonus! (if any -- applies only to contracts commenced prior to Nov 19th, 2020)
+ RESIDUAL (forfeiture penalties deducted)
------------------------------------------
= NUMBER HEX TOKENS PUBLISHED (a minmum of ZERO if panaties exceed RESIDUAL)

What do you think?

Let us know! Tweet at @matiallin

Personal Taxation Musings

The above mentioned and quite literal destruction or burning of HEX tokens is clearly a COST. In some jurisdictions this may be deemed a simple expense (like a lease payment?) while in others, perhaps a capital investment (like a new tractor for your farm?) or perhaps like a certificate of deposit from a bank — a capital investment — or something else. As far as I know, no hard ruling has yet been made on this matter, just about anywhere — though there is no shortage of "professional" opinion from people with less than stellar understanding of unique blockchain assets such as HEX.

On the other hand, PUBLISHING new HEX may or may not be deemed a taxable event, while "disposing" of it by any means with or without compensation (including burning it to enter a new smart contract) almost certainly is. In my own opinion, the publishing of something new is certainly not a taxable event, unless or until I then dispose of my new creation for some kind of monetary gain. After all, how can my "new thing" have any value until it has been agreed by a willing buyer?

Some may argue that a mere number masquerading as an account balance is by its very nature fungible and thus may not be considered unique and therefore not a published thing by any means. I would counter that it was my own choice what I did and when I did it to cause or indeed not cause new HEX to be published, on my own terms within my own relationship with the contract. These events in turn form my own unique story, as published on the public blockchain as it unfolds. It is not the words in a book that bring pleasure to the reader but the story they tell. We all have access to the same words but we are not all best selling authors, if only by choice.

Whatever the case in your area, it should not be difficult to keep your relationship with the HEX.com smart contract and the greater financial space strictly legal. Simply consult a local tax professional. You may wish to shop around if you feel they don't sufficiently understand the nuance of this new technology. However, always remember it is YOU and only you that is ultimately responsible for abiding by applicable law, not your advisor. As sure as the sun will rise, they will have you sign a contract to that end!

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DISCLAIMER

There is no "official" anything in the decentralized HEX space, meaning the ideas herein are those of this author alone, expressed freely and without prejudice. AWESOME!

This author is just an ordinary opinionated public schmuck. I am not a professional advisor of any kind or an accountant or indeed an expert in much of anything — especially not financial related matters or law. What you do with or concerning my ideas is entirely up to you and obviously I accept no responsibility whatsoever for your choices or actions. Welcome to HEX land, where there are no Hexpectations. ;-)

Bug fixes and added support for ETHw / ETHf chains

Changes over versions 0.2.71 to 0.7.82

• Complete codebase refactor react-app => vite and from JavaScript to TypeScript
• Improvements for 'other' chain use & added ETHEREUM POW Support (chain: 10001)
• Fixed calculation bug in late end stake penalty calculations
• Reset currentDay update frequency back to 10 min. (From ten seconds. Oops! Expensive!)
• Infura bandwidth-efficient HEX contract currentDay updating
• Added support for EthereumFair (ETHf) network (chain: 513100)
• Fixed intermittent blank screen crash (regression)
• Fixed New Stake days selector not recalculating bonus figures

Enable PulseChain Testnet support (sort of)

Infura clone not yet available. So, some stuff doesn't work and request bandwidth using wallet provider (Metamask) severely limited.

UX Upgrades and Bug Fixes

Changes included across versions 0.2.58B to 0.2.67B

• 0.2.67B: Fixed error notice loop after device wake from sleep. Clarified NSURLSession bug notice.
• 0.2.66B: Implemented issue #10 -- tap EES Stats table to toggle units
• 0.2.65B: Do not include pending stakes in total APY average calculation
• 0.2.64B: Removed future supply graph from New Stake screen due to data availability (too expensive, basically)
• 0.2.63B: Reverted 0.2.62B stop-gap attempt. Also fixes interest calc bugs per issue #21) . Added NSURLSession disable message.
• 0.2.62B: Stop-gap work-around for ongoing Apple NSURLSession bug. [FAILED]
• 0.2.61B: Failed attempt to work around Apple's buggy NSURLSession Websocket (iOS 15+)
• 0.2.60B: Fixed late exit END STAKE button colors / warnings (was showing as early end stake)
• 0.2.59B: Rebased code to current create-react-app modules. Fixed debug mode issue with wallet connect.
• 0.2.58B: Reverted to previous USD/HEX price source.

Changes included across versions 0.2.51B to 0.2.57B

• NewStakeForm: Resolved weird bonus calcs display (only) when changing stake days.
• Numeric font correction.
• Regression stake progress color bug fixed.
• Dollar end stake summary changed to classic table format.
• HEXUSD rate now functions without connecting wallet.
• Improved Future Supply graph accuracy and responsiveness.
• Added dollar value stake end figures including penalty.
• regression bug-fix (introduced by recent changes to facilitate penalty calculations)
• minor changes to page head (USD price update bar indicator thingy)
• fixed issue with USDHEX price feed values occasionally going to -$1.00

New Feature: See stakes for additional account(s) specified in URL

You can now view (read only) one or more additional accounts' stake data by specifying their wallet address and optional display name in the URL.

The format is ?account=<address[:name]>&account=..., where :name is optional and will be displayed alongside the address in the UI.

Example:
https://hexmpb.win/?account=0x000...000:Zero+Address&account=0x000xxx001

Some UX improvements and bug fixes

Notable Changes (versions 0.2.43B - 0.2.50B)

• Resolved recent wallet connection issues, when using an external browser on mobile.
• Another bug introduced in 0.2.46B caused Big Pay Day figures to double for stakes over half term. Fixed in 0.2.48B.
• A bug introduced in 0.2.46B caused daily payout calcs to miss the most recent full day. Fixed in 0.2.47B.
• Title of New Stake tab changed to Stake Hex ( & Mint Shares) for more clarity.
• Blockchain confirmation event bug fixed.
• Resolved a hang condition affecting some account from time to time.
• Brought APY % calculation into line with go.hex.com (add one day to "days served" in formula).
• App now opens to Active Stakes tab.
• Stakes Summary moved to top of Active Stakes list.
• Total number of active stakes is now shown in title.
• Significant performance increase for Tewkenaire ?tewkens feature.
• Added minimal Google Analytics support to help us see our users' countries.

UI Enhancements / Fixes

• Layout fixes for new screen resolutions previously not tested.
• Regression bug: Hearts unit was being displayed incorrectly as HEX for small values in NewStakeForm bonus values.

App no longer freezes upon wake from sleep on some devices

Some web browsers were freezing up when waking from sleep (unlock) with HEXmob running in the active window. This should no longer occur.

Various UI Enhancements

• Separated big pay day and interest values (interest used to include big pay day, inline with go.hex.com but it was confusing people)
• Adding ?address=0x0...0 will additionally show stake data for a second address (view only)
• Adding ?tewk to web URI will additionally scan for tewkenaire.io stakes
• Various minor UI tweaks

UI Tweaks

Attempt to makes a few things look better, with increased contrast and subtle background color variations across main sections.