# System Overview Hectagon is very different from most of existing projects in the market because no one has control over the number of HECTA to be minted or distributed. The only thing DAO team can do is issuing HECTA tokens at a discount with vesting terms. Whenever someone buys then some HECTAs will be minted to (1) payback buyers and to (2) build the Community Reward Pool and Investment Fund. The Community Reward Pool can only be spent through a DAO-reviewed process to reward users' value-added activities to either Hectagon or Hectagon's portfolio. The DAO team will use the Investment Fund to buy seed and private tokens hence gradually increase the Treasury value. There are a few key stakeholders in Hectagon systems: * Retail investors * Affiliate and Partners * Projects * DAO workers with the following roles: Governor, Policy, Guardian and Vault. #### Retail investors Retail investors are the main actors of Hectagon system. They can **buy HECTA** from Hectagon's contract to help build the Treasury so the DAO workers can run the investment pipeline. Without retail investors' contribution, nothing will happen and Hectagon will cease to exist. Retail investors can use any token to buy HECTA, however the protocol will convert to either BUSD or HECTA-BUSD LP token. Besides, Hectagon let users **stake HECTA** (to get gHECTA as the staked token) and earn some rewards along the way. This mechanism encourages investors to hold the fund in Hectagon hence keeping the HECTA price stable so the investment team can do their job. The less number of HECTA is staked , the more staking reward each individual will receive. This mechanism favors the early birds and the long-term holder of the protocol. gHECTA owners are DAO members, they can participate in DAO governance in either [Forum](https://forum.hectagon.finance/) or [Hectagon Snapshot space](https://snapshot.org/#/hectagon.eth). A forum is a place where anyone can have a voice on anything. However, the final decision is only made through on-chain voting will on Hectagon Snapshot space. #### Affiliate and Partners Hectagon will constantly looking for good project to invest, bootstrap and accelerate. Hectagon will invest into project through Smart Contract Investment mechanism, of which ensures that Hectagon never sell project tokens until the investment term is due. Essentially, Hectagon is an investment machine so Hectagon will need many partners such as senior investment General Partners, Venture Capitalists, Due Diligence companies, LaunchPad, Accelerators, etc. In order to form the partnership, Hectagon has designed a Strategic Partner reward mechanism so they can buy a certain amount of HECTA with discounts. #### Projects Hectagon will constantly look for good projects to invest, bootstrap, and accelerate. Hectagon will invest in the project through the Smart Contract Investment mechanism, which ensures that Hectagon never sells project tokens until the investment term is due. #### DAO Workers DAO workers are people who run the Hectagon on half of the DAO which consists of gHECTA, pHECTA, and tHECTA holders. For now (June 2022), DAO will vote to choose the Governor - the CEO of the DAO team and define the principle & value of how the protocol will work. For now, we have 3 teams under DAO: * Investment team: conduct the investment pipeline, propose investment objectives, etc. * Policy team: in-charge of issuing HECTA with discount and vesting terms, proposing staking reward rate plan for the current year, etc. * Admin team: moderate Forum, Snapshot. As Hectagon grows, we would like to add more team into ### Components of Hectagon System Hectagon consists of 3 main groups of smart contracts: * The Treasury. * Investment Portal * Rewards System [OlympusDAO](https://www.olympusdao.finance/) influenced how Hectagon Treasury works in a few ways: * How token is minted: Tokens are only minted when user buy HECTA from Hectagon smart contract. * Rebase mechanism for staking: Instead of proposing a fix number token for staking rewards like most of DeFi protocol, Hectagon use OlympusDAO's reward\_rate \* total\_supply formula. We believe this method is more agile and better response to market condition than the popular one. For more detail, please read this [document](file:///o/ia0KWiwJdHUVibD2TqsX/s/QC6YR2YUPWf8CjZ47TNI/~/changes/HjjdsO1abGeBqL21sXdz/product/how-the-system-works/everything-about-usdhecta). The [Investment Portal](file:///o/ia0KWiwJdHUVibD2TqsX/s/QC6YR2YUPWf8CjZ47TNI/~/changes/HjjdsO1abGeBqL21sXdz/product/how-the-system-works/investment-portal) component consists of SmartContract Investment (SCI) which safeguards the projects' fund and future developments such as HECTA/NFT marketplace. The [Rewards System](file:///o/ia0KWiwJdHUVibD2TqsX/s/QC6YR2YUPWf8CjZ47TNI/~/changes/HjjdsO1abGeBqL21sXdz/product/how-the-system-works/rewards-system) let Hectagon team and portfolio hold campaigns to promote value-added activities. Through a smart contract implementing the Zero Knowledge Proof concept, we can help build an on-chain social profile for our users. For detail, please follow these links: {% content-ref url="everything-about-hecta" %} [everything-about-hecta](https://docs.hectagon.finance/product/how-the-system-works/everything-about-hecta) {% endcontent-ref %} {% content-ref url="investment-portal" %} [investment-portal](https://docs.hectagon.finance/product/how-the-system-works/investment-portal) {% endcontent-ref %} {% content-ref url="rewards-system" %} [rewards-system](https://docs.hectagon.finance/product/how-the-system-works/rewards-system) {% endcontent-ref %} --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.hectagon.finance/product/how-the-system-works/system-overview.md?ask= ``` The question should be specific, self-contained, and written in natural language. 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