DAO System (TBA)

Hillstone DAO

Hillstone DAO Architecture

Investment products in early stage registered on the platform are offered by the Hillstone Finance. However, Hillstone Finance's goal is to help everyone around the world invest in a variety of investment products, and to achieve this goal, Hillstone DAO will replace the role of the Hillstone Finance Foundation. This document explains the configuration and operation of Hillstone DAO in detail.

Configuration of Hillstone DAO

Anyone who deposits HSF on the staking pool can participate in Hillstone DAO. Holders joined on Hillstone DAO should get into the top 100 of staking pool share amount to register the product in Investor protocol. To get the product registered, The verification of qualification eligibility documents and votes from every DAO is mandatory.

HSF Pool

Pool Reserve within the Hillstone Foundation is used as the HSF Pool. And the amount of HSF deposited in the Investor Protocol within the platform where the Hillstone DAO will operate the product is used.

The first rule of Hillstone DAO is to keep the HSF quantity at 40M. When more than 40M HSF are left at HSF Pool for every quarter, the exceeding token will be distributed to council members according to each other's share.


USDT Pool has two methods of collecting USDT. Through the Bootstrapping Fund, the agency buys HSF. First, if an agency purchases HSF through the Bootstrapping Fund within the Hillstone Foundation, all remaining amounts except a certain fee will be kept in the USDT pool. Second, after the end of the product on the platform, the remaining amount is kept in the USDT pool after HSF Buyback is conducted for profits exceeding the expected profits set by the operator. The USDT kept in the pool is used for investing in underfunded products when registering the product on the platform.

Staking Pool

HSF should be deposited to the staking pool to join the Hillstone DAO member. The share is distributed along with the deposit amount. The exit return of the product is distributed along with the share in the staking pool. Hillstone DAO members can refund the deposited HSF when withdrawing DAO.

HSF Buyback

After the product of the Investor Protocol is outdated, The operator of the product ––Admin–– should deposit the proceeds(USDT) to the protocol to pay the investors. If the proceeds exceed the expected, the exceeded proceeds should be sent to the USDT pool. The USDT added to the pool will partially be buyback under circumstances.

  • Every excess proceeds after the conclusion of the product are used for buyback HSF from external exchange to fit the 40M amount of HSF Pool.

  • When the excess proceeds are left after fitting the 40M of HSF, 50% of the proceeds remain on Buyback, then USDT Pool for the rest.

  • When the HSF on the pool exceeds 40M in the conclusion of the product, 50% of the entire excess proceeds remain on Buyback, then USDT Pool for the rest.

Authority of Hillstone DAO

Member of Hillstone DAO obtains the following authority;

  • Can issue the vote about the platform operation.

  • Can vote for open voting.

  • Receive the distributed return along with HSF deposited on Staking Pool.

  • Can open the vote for product listing to the Investor Protocol.

  • Receive the 5% of operation fee from funds on the listed product.

Withdrawing/Kicking out Hillstone DAO

The Product operating authority is lost when the share amount in Staking Pool is out of the top 100, the DAO decided to impeach the member or failed to operate the fund product. In the case of impeached, or operating failed holder, 100% of the deposited amount on the Staking Pool is paid off as a fee, and this is used as a fund for loss compensation or community development.

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