I tried to have an open mind in regards to HEX, but something is not sitting right with me and I feel I have to speak out about it. My investigation started when someone in Richard Heart (RH)'s own Hexbad telegram channel posted etherscan.io hashes showing daily payouts to the Origin Address(OA) in the excess of 520 million hex. The closeness of that number to the daily amount being paid out in the Adoption Amplifier(AA) caused people to suspect that a copy of the AA funds were also being sent to the OA. This is something that is not supposed to be happening according to RH's explanation of the code design. Upon further investigation it turned out that these 520+ million HEX payments to the OA were not coming from the AA, but rather it's a daily payout from the "We are all Satoshi" (WaaS) bonus directly to the OA. This bonus is essentially all of the unclaimed HEX that is to be paid out proportionally to all stake holders after the initial BTC free claim and AA phase is over with. Since a copy of all bonuses and penalties in HEX get paid to the OA, this bonus is also being paid proportionally on a daily basis to the OA which amounts to about 520 million HEX per day. So if you take a step back and are following along at home, approx 520 million HEX is being minted each day to real people donating their ETH to the project, and another 520 million HEX is getting sent straight to the OA on top of a copy of all of the other bonuses that are also going straight to the OA address. As we all know, this is in addition to the flush address getting all the donated ETH free and clear.Now if that doesn't seem unbalanced enough... it gets worse. I wondered what happens when the OA stakes this free daily HEX. Does that give it a bigger share of The BigPayDay bonuses including the WaaS bonus of which a copy was already paid to the OA? When I asked RH directly about this in telegram his response was that the OA only gets paid the bonus once and does not get any interest from staking... HOWEVER... As RH admitted on a livestream yesterday what has the OA been doing with it's HEX tokens? In RH's own words "It's moved it to 10 or 12 different addresses, and those addresses have staked for mostly 10 years." What this effectively means is that those same HEX tokens in the OA that were created as a copy of the WaaS bonus out of thin air, are now being staked for 10 years in other addresses, and YES these address will get another chunk of the WaaS bonus + interest that is meant to benefit all of the other HEX stakers. When I came back to Richard and asked him about this a second time he admitted that this is true, and I have all of the chat screenshots to prove it. When I asked him if he thought this design was problematic he chose to ignore me and respond to another troll in the chat rather than respond to my valid criticism of his project.My final response to him was this:"Why are you responding to the troll and not my honest criticism. At this point I'm beginning to shift and see that the point of HEX is to enrich you and a select group of your friends. Wealth is being sucked from the masses into your pockets, and you are ok with this. Its looking less altruistic and more greedy day by day as I learn more of the inner workings of HEX"*crickets*
Submitted December 18, 2019 at 01:49AM
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