From institutional experimentation to real-world implementation: Liu Ye explains the major upgrade of the HTX DAO white paper
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From institutional experimentation to real-world implementation: Liu Ye explains the major upgrade of the HTX DAO white paper
"Compliance and decentralization are not opposites, but two parallel paths for HTX DAO to mature and enhance its global competitiveness."
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On August 14, the 18th episode of HTX DAO's "DAO Friends, Please Stay" series, themed “Behind the HTX DAO Whitepaper Upgrade: How Does Institutional Experimentation Evolve into a Real-World Path?”, invited HTX DAO Core Builder Liu Ye and crypto KOLs such as Helium to discuss key topics including core adjustments in the HTX DAO whitepaper, challenges in institutional implementation, enhancing community engagement, compliance strategies, and the future of on-chain financial governance and the development direction of $HTX.
Behind the Whitepaper Update
The HTX DAO whitepaper has recently been updated—not merely a textual revision, but a milestone declaration of direction: evolving from an exchange into a central force in on-chain financial governance, building a user-driven financial free port where every participant holds both decision-making power and profit rights.
The revised whitepaper transforms earlier abstract concepts into concrete, actionable plans, clearly defining the scope of governance rights and providing specific cases, enabling the community to better understand the project’s practical roadmap and development trajectory.
The new HTX DAO whitepaper emphasizes that the long-term momentum of the DAO stems from clear governance incentive designs. User activities such as voting, trading, staking, and content creation are recognized as governance contributions, with explicit incentive feedback delivered through points, airdrops, and yield returns. Meanwhile, ecosystem units such as Huobi HTX and TRON contribute back to the community via mechanisms like token burns, buybacks, and airdrops, establishing a positive cycle of “participation → rewards → re-participation,” encouraging more users to engage in governance and continuously strengthening the DAO’s vitality and ecosystem appeal.
Beyond this, HTX DAO’s governance boundaries will extend into broader ecological domains: granting governance rights to modules such as Launchpad and Launchpool, exploring DAO-controlled entry points for new financial sectors like RWA, LSD, stablecoins, and cross-chain bridges, and promoting on-chain collaborative projects to access traffic and distribution resources through HTX DAO governance. Ultimately, HTX DAO aims to evolve into a “financial sovereignty harbor” governed collectively by global $HTX holders, enjoying real value, dividends, and ownership on-chain.
During the livestream, Liu Ye admitted that a direct reason for updating the whitepaper was the need to apply for regulatory compliance as an exchange in Europe and the U.S., where external audits prompted the team to re-examine the document. They found that early versions were vague in explaining how the DAO integrates with decentralized exchanges, lacking concrete and implementable details. Additionally, the team had developed clearer ideas about the governance mechanism, implementation path, and future planning, necessitating a whitepaper update to reflect these changes. For example, the economic model was adjusted in Q3 2024 from a “liquidity donation” model to a “quarterly burn” mechanism—adopting a strong deflationary model, using 50% of platform revenue each quarter to repurchase and burn $HTX.
She emphasized that as a standard component of blockchain projects, the whitepaper must not only convey the team’s latest thinking, adjustments, and practical paths, but also serve as an authoritative and comprehensive information source, enabling interested users to clearly understand its strategic direction and evolution.
In response, Helium noted that HTX DAO is a DAO that has grown organically, possessing the attributes of a “balancing” tool, combined with a modular operational model, forming its core dimensions. Jingyi, a member of Lanniao Club, believes the whitepaper embodies the principle of “users as participants, participants as beneficiaries,” effectively motivating community members’ enthusiasm and initiative.
Commitment to Long-Termism
During the livestream, when discussing the development of the coin-voting mechanism, Liu Ye pointed out that the first step is to clearly define what problems the mechanism aims to solve and what tangible benefits it can bring to users. Second, a well-designed incentive system is needed to attract and retain long-term participants.
She stressed that, like long-term projects, voting mechanisms will inevitably go through periods of fluctuation—sometimes highly active, sometimes hitting bottlenecks. The key lies in adhering to long-termism, continuously resolving emerging issues, and viewing the entire governance process through a developmental lens.
Liu Ye further stated that the goal is not to boost popularity through one or two short-term campaigns, but to refine the mechanism over one to two years to build a successful governance system. Over the next 6–12 months, three key areas will be prioritized: validating the effectiveness of the voting mechanism; establishing a national treasury and points system to make contribution-based earnings visible; and opening developer permissions on the official website, combining points-based incentives to enable collective DAO building by all members.
Seeking Balance Between Compliance and Decentralization
In response to media questions about how HTX DAO balances compliance and decentralization, Liu Ye said that from its inception, HTX DAO has embraced “long-termism” as a core principle—an approach that has become increasingly important amid the ever-changing global regulatory landscape. She believes that when both capital and regulators focus on the crypto industry, it signals broader social acceptance and an inevitable move toward compliance. Therefore, HTX DAO remains committed to actively embracing and planning for compliant growth.
She noted that many people misunderstand or even fear compliance, but at its core, laws and regulations are essential mechanisms for protecting the rights of the majority and maintaining fairness and stability. For HTX DAO, compliance is not just a challenge, but an opportunity to foster healthier and more sustainable development.
However, achieving the ideal of decentralization is not instantaneous. Liu Ye acknowledged: “Initially, our understanding of decentralization was somewhat too ‘hands-off,’ assuming that a DAO simply meant open discussion and voting decisions. In practice, we realized that most votes reflect sentiment rather than expertise, and may even be driven by emotion, which doesn’t align with long-term development principles.”
To address this, HTX DAO has adopted a “pilot” strategy—first testing governance mechanisms and product solutions within small-scale settings before gradually scaling up. This approach allows for identifying and correcting potential issues while balancing security and efficiency. Liu Ye emphasized: “In the short term, certain phase-specific decisions may not be fully decentralized, but as long as the direction is clear and we remain committed to the ultimate vision of decentralization, we can act with integrity.”
Liu Ye concluded that the DAO team possesses substantial resources and experience. The core builder team led by Justin Sun brings deep expertise in global compliance, financial innovation, and blockchain application deployment, providing a solid foundation for HTX DAO to navigate international regulatory changes. In her view, compliance and decentralization are not opposing forces, but parallel paths guiding HTX DAO toward maturity and enhanced global competitiveness.
About HTX DAO
As a multi-chain deployed decentralized autonomous organization (DAO), HTX DAO demonstrates an innovative governance model. Unlike traditional corporate structures, it adopts a decentralized governance framework composed of diverse groups, collectively dedicated to advancing the success of the organization. Its unique ecosystem promotes open values, encouraging all ecosystem participants to propose initiatives that advance HTX DAO.
Contact Information
Website: www.htxdao.com
Email: media@htxdao.com
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