REDEMPTION UPDATE & FAQ

Last Updated on September 12, 2023.

Important Notice 

Tokenholders are advised to register their tokens at https://app.hector.network/redemption/register and keep them as they are until the release of detailed instructions posted on the official channels.

Currently, the most important thing is to stay updated and follow instructions from the announcements posted only on the official channels to avoid misinformation. 

The TOR redemption process is still under review by the legal counsel, and further information will be provided after the process is completed. 

 

Redemption Wallet Registration Process

The wallet registration for the redemption process will begin on September 12, 2023 and conclude on December 11, 2023.

 

Redemption Eligibility 

As a result of HIP 42, on July 17, 2023, Hector Network entered into liquidation mode with a majority vote (83.3%) from the Hector Network community. Snapshots taken on Fantom (block 65774322 – July-14-2023 12:00:00 PM +UTC – https://ftmscan.com/block/65774322) and BSC (block 29954999 – July-14-2023 12:00:02 PM +UTC – https://bscscan.com/block/29954999) constitute the eligibility blocks for redemption. 

Any tokens acquired after the block number are ineligible to avoid any possibility of redemption manipulation.

 

Wallet Registration Process

To register your wallet:

  1. Visit https://app.hector.network/redemption/register 
  2. Connect your wallet on Fantom Chain. 
    1. The dApp will check and verify if you have eligible tokens such as (TOR, SHEC, FNFT HEC, etc.) on Fantom and Binance Smart Chain so you don’t have to switch chains.

Figure 1

1. Once connected, the dApp displays the amount of tokens you have available and the quantity that qualifies  for redemption based on the July cut off block numbers. 

Note: “Not All of the depicted balances may be eligible for redemption and the claim application will calculate fractionally where appropriate. For instance, you might have HEC that was acquired before and after the cut off block number, in this situation only the HEC acquired before the cut off block number is eligible.”

2. If you see the button depicted below in figure 1, it means that the wallet you connected to the dApp is not eligible for redemption as none of the assets in the wallet qualify on either Fantom or Binance chain. 

Figure 2

3. If you see the button depicted below in figure 2, it means your wallet is eligible for registering for redemption and the assets listed will be registered for redemption

Figure 3

4. Upon registering successfully, you’ll see a message like this

Figure 4

Note: 

  1. The registration application and contract does not use a database server but relies completely on the blockchain for the checks and verifications for qualification.
  2. If you connected your multisig wallet on Fantom Safe, you may get this message “”We were unable to create a connection due to compatibility issues with the latest WalletConnect v2 upgrade. We are actively working with the WalletConnect team and the dApps to get these issues resolved. Use Safe Apps instead wherever possible.””

    As a result, your multisig wallet may not be able to register.

Treasury Assets

As part of the redemption process, the tokens held in the treasury are being swapped for USDC and USDT on Ethereum. The proposed redemption will be in one of these stablecoins issued on Ethereum.

  • 95.4% of the treasury assets are held in stablecoins (96.7% on Ethereum).
  • The assets distributed across blockchains are as follows: 93.2% on Ethereum, 4.9% on Fantom, 0.4% on Binance Smart Chain, and 1.5% on Casper. 

This amount will continue to increase as tokens are unlocked, unstaked from validators and Hector Institute from September to November and swapped into stablecoins as market liquidity permits. 

Transparency on the tokens held in the treasury is still provided through the dashboard accessible at the URL: https://beta.hector.network/ 

(Note: the value of HEC and TOR is excluded from the value of the assets available for redemption.)

Monthly Update

  • As of August 31, 2023, $575,754 of the estimated $1.2MM related to payments under existing contractual agreements and the liquidation process was paid. The estimated remaining amount of expenses for contractual obligations, legal, directors, BVI liquidators, smart contract audits, smart contract developers, disposition of assets, auctioning of intellectual property, and defeasance of the infrastructure is $591,127. 
  • The payable due is related to the BVB performance bonus as per HIP-35.
  • The intellectual property is anticipated to be auctioned using a third party site in October and November. All net proceeds will be distributed to registered token holders.
  • Curve has been contacted regarding the potential refund of a portion of the exploit from CRV-ETH pool and awaiting a definitive response.
  • The cryptocurrencies and tokens were down 15.4% from the start of HIP-42 through July 31st.

Redemption FAQs Update #2

As part of the ongoing liquidation process, the Liquidation Committee has released “Redemption FAQs.” Following this release, an updated version of frequently asked questions was announced on the official channels. The questions posted were mostly published in the form they were received. However, since the FAQs are intended for all users and not solely for the individuals who submitted the questions, and considering that a substantial number of questions are repetitive and necessitate repeating previously provided answers, the Liquidation Committee has adapted the previously published questions by generalising and updating them. This adaptation aims to simplify users’ ability to locate answers.

 

The FAQs and the latest redemption update can be accessed on https://hector.network/. The previous FAQs version can be found at the following link: https://drive.google.com/file/d/1TcF2lG1FxsiJ7ayM-msV36mjN9DYXvz8/view?usp=sharing.

 

For any other questions that may have arisen or were missed, please send them to the dedicated email address: [email protected]. The Liquidation Committee will review and address these questions in future updates and cannot respond directly to any emails. 

 

During the liquidation process, it is important to exercise caution and avoid being misled by scams, misinformation, harmful rumours, or FUD (Fear, Uncertainty, Doubt). To receive accurate and reliable updates, it is crucial to rely solely on trusted official sources:

👉 https://hector.network/ (FAQs)

👉 https://t.me/hectornetworkann

👉 https://discord.gg/hector

👉 https://twitter.com/Hector_Network



Thank you for your cooperation and understanding.

Hector Network Liquidation Committee

Redemption FAQ – Update #2

1. What has happened to the Hector Network’s chat groups, and how can I obtain an answer regarding redemption if I cannot find one in the FAQs or within previously posted announcements?

As of July 17, 2023, at 1600 UTC time, Hector Network officially entered into liquidation mode with a majority vote (83.3%) from the Hector Network community (https://t.me/hectornetworkann/1552).

As a result, all operations of Hector Network have ceased to exist and are currently undergoing a shutdown process. As part of the liquidation, all social media channels owned by Hector Network will also be shut down at the conclusion of the liquidation process.

Due to the lack of personnel required to manage all social media channels created prior to the liquidation period, and to ensure efficient and effective communication with all parties involved during the liquidation process, the following measures have been implemented:

  • Social media channels that were more frequently used have been kept in announcement mode, where all important liquidation updates will be communicated by the Liquidation Committee. 
  • For any questions or clarifications related to the redemption process, the email address [email protected] has been established and announced to the community.

Please bear in mind the critical importance of relying solely on official channels for information to avoid being misled by scams, misinformation, harmful rumours, or FUD (Fear, Uncertainty, Doubt). Trusted official sources are: 

👉 https://t.me/hectornetworkann

👉 https://discord.gg/hector

👉 https://twitter.com/Hector_Network

👉 https://hector.network/

 

2. Who, from the Hector Network team will be included in the liquidation process and with what role? 

The liquidation process will be overseen and run by the Liquidation Committee, which consists of:

  • Legal Counsel: Sparring
  • Smart Contract Auditors: Certik and Hacken
  • BVI and RMI Liquidators: Richmond Advisory
  • Financial Statements and Asset Liquidation: Head of Finance
  • Infrastructure Closure: Head of Development

For more information, you can visit: https://t.me/hectornetworkann/1553.

 

3. Can the approximate time frame for the individual tasks or group of tasks be provided? 

The liquidation process involves several tasks, each with its own estimated time frame. Here are the approximate time frames for the key tasks:

  • Liquidation of the corporate entities: The liquidation process for the corporate entities is expected to take 6-8 weeks because it involves posting public notices to creditors and disposition of any assets and liabilities. However, this process will be carefully timed to coincide with the Hector Network treasury liquidation. It is important to ensure that both the corporate entities and the Hector Network treasury are liquidated simultaneously to prevent Hector Network from losing the ability to interact with off-chain service providers once the entities are liquidated. This process will be overseen by a third-party liquidator to ensure its transparency and is critical in ensuring that all assets of Hector Network are distributed to the tokenholders.
  • Time period for tokenholders of HEC tokens and its variants to claim their corresponding share of the Hector Network’s treasury: Tokenholders will have a 3-month registration window to register their wallets/eligible tokens. The wallet registration for the redemption process will begin on September 12, 2023, at https://app.hector.network/redemption/register and conclude on December 11, 2023. After the registration window and the contract audits are complete, tokenholders will be given an additional 2 months to claim their share of the treasury. This extended period has been designed to allow all tokenholders, including those who may not actively follow the situation, sufficient time to make their claims. The goal is to ensure that nobody is disadvantaged during the redemption process.
  • Notice period to remove tokens from the Fantom and Casper validators: To facilitate the redemption process, there is a notice period of 3 months to remove tokens from the Fantom and Casper validators.
  • Notice period for Bitmart and Bitrue centralised exchanges: Bitmart and Bitrue centralised exchanges require a 2-month notice to remove tokens.
  • Fulfilment of existing contractual obligations: Fulfilling existing contractual obligations is expected to take between 1 to 3 months. The exact time frame may vary depending on the complexity of the contracts and agreements involved. These obligations involve, for example, the termination and offboarding of external developers responsible for the development of the technical infrastructure with various termination notice periods.
  • Audit of the redemption contracts by Certik and Hacken: The estimated time for the audit of the redemption contracts by Certik and Hacken is yet to be determined but we expect it to take approximately 2 to 3 months. This audit is a crucial step in ensuring the security and accuracy of the redemption process.
  • Winding down of infrastructure, planning, architecture, development and deployment of redemption contracts and interface: The estimated time for winding down all infrastructure, including emissions plan, farming, liquidity pools, development and deployment of the redemption contracts and interface dApp, is still to be determined, but we currently estimate it to take 4 to 5 months which may be subject to change. These tasks involve meticulous planning and execution with multiple dependencies that need to be effectively managed. This is crucial in guaranteeing a seamless transition and ensuring the secure facilitation of redemption procedures for all variants of the HEC token and their respective value compositions. Together with the above mentioned audit, this step is intended to create confidence that the redemption mechanism cannot be abused.


It is important to note that not all tasks can be completed in parallel, as certain tasks are sequential and depend on the completion of others. The Liquidation Committee is diligently working on the redemption process, and some timelines are subject to change due to unforeseen circumstances.

 

4. What impact will the liquidation and redemption process have on TOR?

Regarding the TOR token, since its launch, several changes have been made to the TOR mechanism, all of which have been announced and communicated. For detailed information about the minting, redeeming, and backing of TOR, please refer to the announcements posted on June 1st, 2022 (https://discord.com/channels/902514779690790932/903000513988136990/981640143104540742), September 1st, 2022 (https://discord.com/channels/902514779690790932/903000513988136990/1014912533737512991) and September 22nd (https://twitter.com/Hector_Network/status/1572964075541258246?s=20). 

The TOR redemption process is still under review, and further information will be provided after the process is completed.

 

5. Will unclaimed farm and staking rewards participate in the redemption of $HEC?

For any HEC tokens that have been locked before the cut-off block number that was announced, a comprehensive plan is currently being developed to cater to all redemption situations that fall within the specified cut-off block number. This is a complex aspect of the redemption system, and further information will be provided after the process finalisation.

 

6. What will happen with the USDC and TOR in the Farms?

All liquidity will be removed.

 

7. When will Emission Plan Farms, locked for a longer period, be unlocked?

The unlocking of the Emission Plan Farms is proceeding as scheduled at the time of locking. Farms locked for an extended period with unlocking dates set after the start of the redemption process will be unlocked before the redemption period starts.

 

8. What will happen with Hector Network’s intellectual property (IP)? 

As part of the liquidation process of Hector Network, Hector Network’s intellectual property is planned to be auctioned using a third-party site in October and November. All net proceeds will be distributed to registered token holders.

As more information becomes available, updates will be provided through the official channels.

 

9. How will the OIKOS Profit Agreement be managed? 

There is no profit agreement as the game was in pre-production at the time of the liquidation vote and no separate legal entity was formed. 

 

10. What will happen with the treasury? Will it stay on Fantom or be transferred to the other chain and what tokens will be used for the redemption of $HEC?

As part of the redemption process, the tokens held in the treasury are being swapped for USDC and USDT on Ethereum. The proposed redemption will be in one of these stablecoins issued on Ethereum.

 

11. What are the total approximate expenses and payment obligations needed to be settled prior to the redemption?

There are approximately $1.2 million in payment obligations arising from partnership agreements, software development, legal and operating expenses, and other contractual obligations. This amount also includes the estimated cost of disposition and completion of the token redemption. Over 50% of these obligations stem from agreements dated in 2022 and Q1 2023 but must be honoured to avoid disputes.

 

12. What will I need for claiming funds in the redemption of $HEC?

Tokenholders will need to keep their HEC tokens after the snapshot has been taken in order to claim the redemption. 

The redemption process will involve a multi-step approach. In the first phase, tokenholders will be required to register their wallets with various versions of their HEC tokens, including FNFT. The registration period for the redemption process will begin on September 12, 2023, at https://app.hector.network/redemption/register and conclude on December 11, 2023. Once the registration period is concluded, and their wallets are whitelisted into the redemption contract, tokenholders will then need to sign a transaction to send their tokens to the redemption contract. As a result, they will receive the redemption value in the form of USDT or USDC tokens on the Ethereum blockchain.

At this moment, except in specific cases where a particular action has been announced, such as the Closing of Hector Institute announcement (https://t.me/hectornetworkann/1560), tokenholders are advised to register their tokens at https://app.hector.network/redemption/register and keep them as they are until the release of further instructions posted in the official channels.

 

13. Where and how can I register my wallet/tokens for the redemption? 

The registration period for the redemption process will begin on September 12, 2023 and conclude on December 11, 2023. 

To register your wallet/eligible tokens:

Please note:

  • Until the release of detailed instructions posted on the official channels, tokenholders are advised to keep their current tokens as they are. 
  • The TOR redemption process is still under review by the legal counsel, and further information will be provided after the process is completed.

14. How much time will users have for claiming in the redemption of $HEC and what will happen with unclaimed funds? 

As described in the answers to previous questions, the redemption process will involve a multi-step approach. In the first phase, tokenholders will have a 3-month window to register their wallets. Once the registration period is concluded, and wallets are whitelisted into the redemption contract, tokenholders with whitelisted wallets will have an additional 2 months to claim their share of the treasury. Any funds that go unclaimed during the registration phase will be proportionally redistributed among the tokenholders with whitelisted wallets so that no funds are left over at the end of the redemption process.

 

15. What token(s) will people receive in the redemption of $HEC?

Redemption is anticipated to be provided in the form of USDT or USDC on the Ethereum blockchain.

 

16. What $USD value can I expect to get for 1 HEC?

The value tokenholders will receive for 1 HEC in USD will depend on the token value of the treasury assets at the time of redemption, after deducting all contractual, statutory, legal obligations, and liquidation costs that must be fully settled.

The dashboard of the treasury assets is still accessible at the URL https://beta.hector.network/ and provides transparency on the tokens held in the treasury.

 

17. What is a “snapshot” and how does it affect redemption?

The snapshot is a record of a blockchain block number. Tokens acquired after the snapshots taken on the Fantom and BSC networks, as announced in HIP 42 (https://t.me/hectornetworkann/1548), will be excluded from the redistribution of treasury assets. Snapshots have been taken in order to prevent manipulation, safeguard the fairness of the process, and ensure that no one can benefit at the expense of other members.

 

18. Has the snapshot already occurred, and do I need to take a snapshot in order to participate in the redemption?

Users do not need to take any snapshots since snapshots have already been taken on Fantom (block 65774322 – Jul-14-2023 12:00:00 PM +UTC – https://ftmscan.com/block/65774322) and BSC (block 29954999 – Jul-14-2023 12:00:02 PM +UTC – https://bscscan.com/block/29954999) and announced in HIP 42.

 

19. Was ownership of HEC token variants such as wsHEC, sHEC and others, taken into consideration during the snapshot for further use?

Yes. 

 

20. If $HEC tokens were stored on a ledger (or any other offline hardware wallet) at the time of the snapshot, were they still considered for the snapshot?

If $HEC tokens were stored on a ledger at the time of the snapshot, they were still considered for the snapshot. The snapshot is a record of a blockchain block number, so tokens held by tokenholders will be included in that block, regardless of the wallet they were stored in. This does not apply to exchange accounts.

 

21. Do I have to keep my HEC after the snapshot has been taken in order to claim?

Yes. Except in specific cases where a particular action has been announced, such as the Closing of Hector Institute announcement (https://t.me/hectornetworkann/1560), tokenholders are advised to register their tokens at https://app.hector.network/redemption/register and keep them as they are until the release of further instructions posted on the official channels. 

 

22. What will happen to my loans currently active in the Hector Institute?

All active loans in the Hector Institute should be settled, and assets withdrawn before September 30th, 2023. Please be aware that failure to withdraw related tokens in a timely manner may result in the loss of your assets. For more information, please visit: https://t.me/hectornetworkann/1560

 

23. Different token variants for non-native tokens, often denoted with an additional label added to the token name, such as DAI_MULTI, DAI_AXL, DAI_LZ, or similar, have become available on Fantom. Which token variants do I need to use in the Hector Institute?

Additional labels added to the tokens’ names are meant to inform users about the specific token version they are using. Before the Multichain hack, non-native tokens used on the Fantom network and within the Hector Institute were bridged to Fantom by Multichain. These tokens, now often denoted with an additional label “multi,” such as DAI_MULTI, multiDAI, or similar, can be found and traded on decentralised exchanges (DEXes).

 

24. What should I do with my staked, wrapped HEC and HEC deposited in the Farms? Do I need to unstake/unwrap them and claim/withdraw my tokens from the Farms?

It is essential to follow the instructions announced by the Liquidation Committee on the official channels. The Liquidation Committee has already communicated and will continue to provide guidance on the necessary actions to be taken. At the moment, except in specific cases where a particular action has been announced, such as the Closing of Hector Institute announcement (https://t.me/hectornetworkann/1560), tokenholders are advised to register their tokens at https://app.hector.network/redemption/register and keep them as they are until the release of further instructions posted on the official channels.

To check announcements posted so far, please visit one of the following channels:

https://t.me/hectornetworkann

https://discord.gg/hector

https://twitter.com/Hector_Network

FAQs will be posted on this webpage (https://hector.network/) with a link to the webpage shared on the official channels.  

 

25. Where can I withdraw/unstake/unwrap my current $HEC and $TOR tokens and trade them? 

IMPORTANT: To avoid issues, some of which cannot be undone, please bear in mind that it is essential to be well informed and to follow instructions only from official sources before taking any actions with your tokens.

  • As part of the Hector Network liquidation, tokenholders of HEC token and its variants acquired before the snapshots taken on Fantom and BSC networks will be able to participate in the redemption and claim a part of the Hector Network treasury.

    Currently, except in specific cases where a particular action has been announced, such as the Closing of Hector Institute announcement (https://t.me/hectornetworkann/1560), tokenholders are advised to register their tokens at https://app.hector.network/redemption/register and keep them as they are until further instructions are released on the official channels.

    More information about redemption of HEC and TOR can be found in the answers provided in the responses to the previous questions posted above. 

     

     

  • For HEC and TOR tokens used within Hector Network’s ecosystem, dapp (https://app.hector.network/) and beta dapp (https://beta.hector.network/) are still available.

Note: As part of the liquidation process some functions of Hector Networks dapp/beta dapp such as Hector Swap are disabled as the project is in the process of winding down. HEC and TOR can be traded on decentralised exchanges such as SpookySwap (https://spooky.fi/#/swap). 

Please note that the information provided in this FAQs is subject to change and will be further detailed in the liquidation process. Stay tuned for official updates and announcements through Hector Network’s official channels. 

Questions submitted to [email protected] will be updated here and not answered directly via email.

Hector Liquidation 2023