Delegatioin System

Governance power in HashStrategy is granted exclusively to $HS token holders who stake their tokens. Staking not only contributes to the protocol’s stability but also activates the holder’s right to participate in decentralized governance through delegation.

All staked $HS must be delegated to a validator. When staking, a token holder selects a validator to represent their voting interests. If no validator is selected at the time of staking, the system will automatically assign the stake to a protocol-designated validator operated by the operations team. This default validator charges zero commission and is expected to vote strictly in alignment with the long-term health and mission of the protocol.

Delegation is dynamic. Token holders may reassign their delegated voting power to a different validator at any time. To preserve governance stability and mitigate delegation volatility, re-delegation takes effect at the beginning of the next governance cycle, defined as a monthly interval.

This delegation framework ensures that all governance power is actively represented while preserving flexibility and accountability. It empowers token holders to select representatives aligned with their values, while ensuring protocol-level decisions remain credible, participatory, and adaptive.

Validator Eligibility and Standards

To ensure trustworthiness and competence, all Validators must meet strict eligibility standards and maintain consistent governance participation.

Minimum eligibility criteria:

• Must have at least staked 5% of total $HS token supply

• Must publish a reward distribution policy

• Transparency and reporting commitments

• Must qualify as a Professional Investor (PI)

• Must not be based in restricted jurisdictions (e.g., U.S., Iran, North Korea)

• Must comply with applicable legal and regulatory standards

Term and Renewal:

• Validators serve 12-month terms

• Continuation is subject to active delegation and performance

• Validators who fail to meet minimum participation or governance standards may be removed or subject to slashing mechanisms