Yearly PASSIVE income?? Maximus DAO | Part 1

Welcome to the brand-new series where we will be diving deep into the MAXIMUS DAO ecosystem and all its latest additions. In this video we will be summarizing everything that the MAXIMUS team has released to date as well as what is coming for the protocol. In future videos we will be diving into the technical details as well as game theory as this series goes on. Now, let’s dive right in.

On April 16th of 2022, Hex holders had a 14-day window to participate in a 15-year stake where users pool their Hex to make one giant stake and max out the staking bonuses, something previously available to only a select few Hex holders. If users decided to commit their HEX to the MAXIMUS DAO, they received one MAXI token for every HEX token they sent to the contract during this mint phase. These tokens would be redeemable for Hex at the end of the stake.

Both Founders are fully transparent about their identities and are very public. They livestream, hold twitter spaces, and are constantly engaging with the public. This makes me very confident in the legitimacy of their work moving forward. Back to MAXI though.

MAXI allowed stakers to save on gas fees for starting a stake and ultimately save them money on the end stake as well, as anyone can pay the fee to end the stake if someone is feeling generous. Once the Gas fee is paid, Users can redeem their MAXI for their share of the Hex in the pool and receive their share of the HDRN tokens from the stake.

The MAXI protocol has frozen the Emergency End stake button, so no one can end the stake early under any circumstances. There are no admin keys, and the code is locked forever. Let’s get back to the minting phase though.

At the end of the 14-day period, a whopping 294,316,330 Hex had been committed to the Maximus DAO and were locked up for 15.2 years. This meant that there would only ever be at most 294,316,330 MAXI tokens in existence. Let’s quickly go over how the MAXI tokens value should work over the duration of the stake.

Each MAXI token is worth 0.00000000339% of the 294,316,330 token supply and is based off the starting amount of HEX committed to the DAO. Because a stake generates HEX yield, the amount of HEX in the DAO will be growing every day, meaning that each MAXI token will be redeemable for 0.00000000339% of the ENTIRE amount of the Hex in the DAO at the end of the stake.

If at the end of the 15 years, the total amount of Hex in the DAO was 1 billion, then Each MAXI token would then be redeemable for 3.39 HEX at the end of the stake. It’s very unlikely that the number in the DAO is this low, however this is just for the sake of example here. So, now that we can see how the token is redeemable for HEX in the DAO, let’s talk about how its value should increase.

Due to MAXI being a derivative of HEX in the DAO, and the amount of Hex in the DAO is increasing daily, the value of MAXI should increase over time in direct proportion to the growth of HEX in the DAO and the price of HEX. The price performance should follow a trend like this:

What is fantastic about this concept, now that we know how the price in relation to HEX and the Hex in the treasury should work, is that MAXI gives instant liquidity to those who wish to cash out early of a stake without ending the stake itself. What this means in simple terms, is that normally if you stake your HEX, you are locked in for at least half of the stake to get your principal back, however while holding MAXI, you can sell your share of the stake based on the exact amount of yield your portion of tokens has earned PLUS the principal at any time. You can also buy back in later if you ever decided. Now that we understand MAXI in a nutshell, let’s introduce the 4 perpetual stake tokens.

BASE is a single year, perpetual stake cycle that allows users to pool their HEX tokens into one giant yearly stake. TRIO is a three-year, perpetual stake cycle that allows users to pool their HEX tokens into one giant 3-year stake. LUCKY is a 7-year, perpetual stake cycle that allows users to pool their HEX tokens into one giant 3-year stake. Finally, we have DECI or Decimus, which is a 10-year, perpetual stake cycle that allows users to pool their HEX tokens into one giant 10-year stake.

They all have the gas savings like MAXI, allow users to cash out or buy in at any time, and mint HEDRON at the end of the stake. There will be up to a 21-day mint phase, which will function the same as the MAXI mint phase for all perpetual staking tokens. Half of the Bigger Pays Better Bonus from the stakes are given to the TEAM token stakers as yield. But what exactly is TEAM?

Maximus TEAM is an income sharing token for Maximus Dao Members. MAXI holders can mint 1 TEAM token by pledging 1 MAXI token to the smart contract during the mint phase.

Here is where we introduce the “Mystery Box”, which sounds a whole lot like the Origin address from Hex and the Source Address from HEDRON. The Mystery Box gets a copy of all TEAM minted during this phase. Its owner is unknown and undisclosed, and we should not have any expectations of this Mystery Box. Back to TEAM now.

TEAM tokens must be staked for one year at a time to earn the rewards in the form of both HEX and HDRN from the BASE token stake. The rewards come from 50% of the Bigger Pays Better bonus of the BASE, TRIO, LUCKY, and DECI stakes. TEAM staking will start just before the BASE stake minting period each year and end when the BASE minting has begun. Users who remain staked for the entirety of the stake will earn their share of the rewards and their principal back. If a user does not complete the stake, they will incur a 3.69% penalty on their TEAM principal no matter how close or far from the end of the stake they are. Team stakers can stake and earn yearly passive income with the perpetual BASE plus the other staking cycles.

What happens to the MAXI that was pledged to the smart contract though? Let’s break that down, as this is where things start to get very interesting.

When the TEAM minting phase is over and users have pledged their MAXI tokens, a few things happen with the tokens. 20% of the MAXI used to mint TEAM is BURNT from existence, never to return to supply and consequently increase the redemption amount of each individual MAXI token.

30% of MAXI pledged is held in trust less escrow and redistributed to stakers in the following sequence: 1/6th after 3 years, 1/3rd after 6 years, and ½ after 9 years. This will incentivize users to be buying and staking TEAM at the two-, five- and eight-year mark.

Finally, the remaining 50% of all MAXI pledged will be sent to the Mystery Box.

So, the big question is this: Why on earth anyone would give up their MAXI tokens for TEAM when the BPB bonus of a 1-year stake would be minimal? This is where we must look at the timing of all other stake cycles.

During years one and two, TEAM stakers would only get bonuses from the BASE yearly Stake. In year three though, TEAM stakers would get 50% of the BPB Bonus from both BASE and TRIO as well as 1/6th of the redistributed MAXI tokens to TEAM stakers. During Year 6, TEAM stakers would get the BPB bonus from BASE and TRIO as well as 1/3rd of the MAXI tokens redistributed to stakers. In year 7, TEAM would get bonuses from both BASE and LUCKY. In year 9, TEAM stakers would get bonuses from BASE, TRIO and the final ½ remaining of the MAXI to be redistributed. In year 10, TEAM stakers would get the BPB bonus from both the BASE and DECI stakes. Year 12 would see bonuses from both TRIO and BASE, year 14 would see BASE and LUCKY, and year 15 would see bonuses from TRIO, and BASE in addition to that being the year the MAXI stake has ended. It really is a HEX staking ladder system.

Not only does acquiring TEAM get you yearly bonuses in Hex and Hedron that overlap every so many years, but acquiring TEAM makes MAXI rarer and could possibly even see rewards for TEAM stakers in the form of PLS, ETH, USDC and other tokens.

So now that we’ve completed the overview of the Maximus DAO, in the next video we will dive deep into what this means on a more technical level. After even researching enough to do the overview video you’ve just watched, it is obvious to me how beneficial to HEX the Maximus DAO really will be. It will incentivize users to lock up HEX knowing full well that if they sell early, they are not hurting the price of HEX directly. We have a lot more to learn before I can concretely say just how big of an impact Maximus could have on HEX, but so far it seems nothing short of great.

- CRYPTOGRFX

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