DAO System
Hillstone Governance Structure
Hillstone General Council, or HGC, will be responsible for governing and maintaining a long-lasting investment platform in which users can enjoy investment opportunities that had been inaccessible before. HGC is going to replace Hillstone Finance Foundation, which is responsible for sourcing funds at the early stage of Hillstone Finance project. Hillstone General Council is a DAO (Decentralized Autonomous Organization) which accounts for sourcing and managing funds. Hillstone Finance collects 6% of the funds as commission fee. On top of HGC is The Standing Committee of Hillstone General Council, which holds more power than HGC. This document specifies the structure and authorities of Hillstone General Council and The Standing Committee of Hillstone General Council.
Hillstone General Council (HGC)
The Hillstone General Council will initially include ten members, including Hillstone Finance Foundation. These members can be both individuals or institutions, and the maximum size of HGC will be 100 members. HGC includes The Standing Committee of Hillstone General Council, which is made of 10 members.
Council Reserve
To become a member of Hillstone General Council (HGC), the applicant must stake HSF in Council Reserve. This requirement also applies to the initial 10 institutions selected as HGC members. After staking, members will receive PEBBLE as our governance token. Those staked HSF will act as collaterals for the financial products registered on Investors and HikePad, and users will receive Hillstone’s stable coin HSD as reward.
Since the value of HSF and HSD are directly related to the development of the Hillstone Finance ecosystem, all members who stake HSF in Council Reserve are in fact contributing to Hillstone Finance.
Members who wish to un-stake their HSF must return the governance token—PEBBLE. The returned PEBBLE will be burned.
PEBBLE is the governance token for Hillstone General Council (HGC). Users can obtain the rights to participate in financial products registered in Hillstone platform with PEBBLE. Moreover, users receive PEBBLE as a reward for staking HSF. Users also receive HSD from HSD Reserve when products registered on Investors and HikePad exits. The distribution of HSD is determined according to the amount of PEBBLE token a user holds vs the total amount of PEBBLE in the entire ecosystem.
The Authority of Hillstone General Council
Members of Hillstone General Council have the following authorities:
• Council members (except The Standing Committee and the fund operating party) will receive 35% of the commission fee (6% of the fund) according to the amount of PEBBLE token.
• A General Council member can request for vote on the management of Hillstone Finance
• Voting rights will be distributed according to each member’s amount of PEBBLE token
• A member can grant Impact Factor to encourage participation of a specific institution
The Standing Committee of Hillstone General Council
100 institutions will be selected from Hillstone General Council to become The Standing Committee of Hillstone General Council. Members will be selected according to the amount of PEBBLE token they have times the Impact Factor. The top 100 institutions will be elected to be the standing committee of Hillstone General Council.
• A Standing Committee member can request for registering products on Investors or HikePad
• A total of 45% of the total commission fee will be equally distributed to all Standing Committee members (except the operating party). The product operating party will take 23% of the commission fee.
Exit/Disqualification From Hillstone General Council
A standing committee member can be disqualified if its PEBBLE ranking falls below top 100, or HGC has disqualified the member through voting, or the member failed to operate a product successfully (if the fund at exit is less than 99% of the original fund). When a member is disqualified, Hillstone will confiscate all the HSF deposited by the member. Hillstone will use it for loss compensation and community development.
To prevent a rug-pull, a member can not request for the refund of deposit, and Hillstone would not refund the fund operating party during the operation period.
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