From b768d77602beb557eae15ac0a4785d9637725d89 Mon Sep 17 00:00:00 2001 From: Andy Zyvoloski <104723888+heatedlime@users.noreply.github.com> Date: Thu, 15 Jun 2023 10:49:10 -0500 Subject: [PATCH 01/10] Create 0000-adjustment-of-dao-utility-a-score-to-remove-onboarding-fees.md This proposal suggests removing the DNP Device Activation Fee (AKA onboarding fee) from the DAO Utility Score. --- ...ility-a-score-to-remove-onboarding-fees.md | 49 +++++++++++++++++++ 1 file changed, 49 insertions(+) create mode 100644 0000-adjustment-of-dao-utility-a-score-to-remove-onboarding-fees.md diff --git a/0000-adjustment-of-dao-utility-a-score-to-remove-onboarding-fees.md b/0000-adjustment-of-dao-utility-a-score-to-remove-onboarding-fees.md new file mode 100644 index 000000000..dbd895a9d --- /dev/null +++ b/0000-adjustment-of-dao-utility-a-score-to-remove-onboarding-fees.md @@ -0,0 +1,49 @@ +# HIP XX: Adjustment of DAO Utility A Score to Remove Onboarding Fees +- Authors: [Gateholder] (https://github.com/gateholder) & [Andy Zyvoloski](https://github.com/heatedlime) +- Start Date: 6/15/2023 +- Category: Technical & Economic +- Original HIP PR: # +- Tracking Issue: # +- Voting Requirements: veHNT + +## Summary +This proposal suggests removing the DNP Device Activation Fee (AKA onboarding fee) from the DAO Utility Score. + +## Motivation +Currently, the A Score factors includes Active Device Count multiplied by the current onboarding fee for each device for that network. As written, this currently discourages networks from lowering their device onboarding fee to make it more affordable to add and onboard devices to the network, since lowering their onboarding fee will ultimately lower that SubDAO's A score. As currently written, lowering onboarding fees would result in lower daily HNT emissions to that SubDAOs Treasury. This also creates a higher barrier of entry for each network, which may discourage the purchase of new equipment. As being a network of networks, the Helium Community should encourage the expansion of its sub networks, and make it more affordable for others to join. + +## Detailed Explanation +As implemented in HIP51, a DAO Utility Score is used to determine the daily emissions of HNT to each SubDAO treasury. The current equation for this calculation is noted below: + +Current: +$A = \text{max}(1, \sqrt[4]{\text{DNP Active Device Count} \times \text{DNP Device Activation Fee}})$ + +This HIP proposes removing DNP Active Device Count from the A score, to have the equation equal the following: + +Proposed: +$A = \text{max}(1, \sqrt[4]{\text{DNP Active Device Count}})$ + +## Stakeholders +The proposed changes to the A score calculation in the DAO score will impact various stakeholders within the Helium ecosystem. These stakeholders include: + +SubDAO Treasuries: SubDAO Treasuries may experience a potential change in the distribution of HNT emissions. The removal of the onboarding fee from the A score calculation may encourage more device owners to participate in subDAO networks. + +HNT Owners: The removal of onboarding fees from the A Score may result in networks removing onboarding fees from their network, which will result in less HNT burn. + +##Drawbacks: + +While the proposed changes to the A score calculation aim to improve the distribution of HNT emissions in the Helium ecosystem, there are potential drawbacks to consider: + +Impact on Existing SubDAOs: Existing subDAOs that have been operating with the current A score calculation may be negatively affected by the proposed changes. The redistribution of HNT emissions could lead to disagreements or dissatisfaction among some stakeholders, particularly if they perceive the changes as unfavorable to their interests. + + +##Alternatives +Maintaining the Current Calculation: One alternative would be to keep the current A score calculation, with the onboarding fee included. However, doing so might lead to unnecessary complexity, as managing the onboarding fee using on-chain mechanisms like NFTs and storing the associated data would require additional resources and potentially increase costs. + +Adjusting the A Score Calculation Differently: Another option is to explore different adjustments to the A score calculation that might achieve similar goals while addressing the potential drawbacks of this proposal. This could include introducing new parameters or modifying the existing calculation in other ways. + +## Deployment Impact +The Helium Foundation will need to adjust the A Score Calculation of the DAO Utility Score to remove onboarding fees. + +## Success Metrics +The success metric will be the HNT daily emissions being correctly recalculated to exclude onboarding fees from the A Score. From 3a123fc9ee97b21e5744f74aed235717c992cbc4 Mon Sep 17 00:00:00 2001 From: Andy Zyvoloski <104723888+heatedlime@users.noreply.github.com> Date: Thu, 15 Jun 2023 12:49:16 -0500 Subject: [PATCH 02/10] Update 0000-adjustment-of-dao-utility-a-score-to-remove-onboarding-fees.md minor cosmetic changes. --- ...stment-of-dao-utility-a-score-to-remove-onboarding-fees.md | 4 ++-- 1 file changed, 2 insertions(+), 2 deletions(-) diff --git a/0000-adjustment-of-dao-utility-a-score-to-remove-onboarding-fees.md b/0000-adjustment-of-dao-utility-a-score-to-remove-onboarding-fees.md index dbd895a9d..c5c0326b8 100644 --- a/0000-adjustment-of-dao-utility-a-score-to-remove-onboarding-fees.md +++ b/0000-adjustment-of-dao-utility-a-score-to-remove-onboarding-fees.md @@ -30,14 +30,14 @@ SubDAO Treasuries: SubDAO Treasuries may experience a potential change in the di HNT Owners: The removal of onboarding fees from the A Score may result in networks removing onboarding fees from their network, which will result in less HNT burn. -##Drawbacks: +## Drawbacks: While the proposed changes to the A score calculation aim to improve the distribution of HNT emissions in the Helium ecosystem, there are potential drawbacks to consider: Impact on Existing SubDAOs: Existing subDAOs that have been operating with the current A score calculation may be negatively affected by the proposed changes. The redistribution of HNT emissions could lead to disagreements or dissatisfaction among some stakeholders, particularly if they perceive the changes as unfavorable to their interests. -##Alternatives +## Alternatives Maintaining the Current Calculation: One alternative would be to keep the current A score calculation, with the onboarding fee included. However, doing so might lead to unnecessary complexity, as managing the onboarding fee using on-chain mechanisms like NFTs and storing the associated data would require additional resources and potentially increase costs. Adjusting the A Score Calculation Differently: Another option is to explore different adjustments to the A score calculation that might achieve similar goals while addressing the potential drawbacks of this proposal. This could include introducing new parameters or modifying the existing calculation in other ways. From a62c938d2ed87709cde6404df2fbc127e652264d Mon Sep 17 00:00:00 2001 From: Andy Zyvoloski <104723888+heatedlime@users.noreply.github.com> Date: Thu, 15 Jun 2023 12:49:56 -0500 Subject: [PATCH 03/10] Update 0000-adjustment-of-dao-utility-a-score-to-remove-onboarding-fees.md Cosmetic change to authors name to display correctly --- ...justment-of-dao-utility-a-score-to-remove-onboarding-fees.md | 2 +- 1 file changed, 1 insertion(+), 1 deletion(-) diff --git a/0000-adjustment-of-dao-utility-a-score-to-remove-onboarding-fees.md b/0000-adjustment-of-dao-utility-a-score-to-remove-onboarding-fees.md index c5c0326b8..e6023713f 100644 --- a/0000-adjustment-of-dao-utility-a-score-to-remove-onboarding-fees.md +++ b/0000-adjustment-of-dao-utility-a-score-to-remove-onboarding-fees.md @@ -1,5 +1,5 @@ # HIP XX: Adjustment of DAO Utility A Score to Remove Onboarding Fees -- Authors: [Gateholder] (https://github.com/gateholder) & [Andy Zyvoloski](https://github.com/heatedlime) +- Authors: [Gateholder](https://github.com/gateholder) & [Andy Zyvoloski](https://github.com/heatedlime) - Start Date: 6/15/2023 - Category: Technical & Economic - Original HIP PR: # From d77b6a57ccc672237605c716ec24ff6769876d40 Mon Sep 17 00:00:00 2001 From: Andy Zyvoloski <104723888+heatedlime@users.noreply.github.com> Date: Thu, 15 Jun 2023 12:53:25 -0500 Subject: [PATCH 04/10] Update 0000-adjustment-of-dao-utility-a-score-to-remove-onboarding-fees.md Added changes to DAO utility Score to display whole score instead of just A Score. --- ...ility-a-score-to-remove-onboarding-fees.md | 21 ++++++++++++++++++- 1 file changed, 20 insertions(+), 1 deletion(-) diff --git a/0000-adjustment-of-dao-utility-a-score-to-remove-onboarding-fees.md b/0000-adjustment-of-dao-utility-a-score-to-remove-onboarding-fees.md index e6023713f..312c70838 100644 --- a/0000-adjustment-of-dao-utility-a-score-to-remove-onboarding-fees.md +++ b/0000-adjustment-of-dao-utility-a-score-to-remove-onboarding-fees.md @@ -16,11 +16,30 @@ Currently, the A Score factors includes Active Device Count multiplied by the cu As implemented in HIP51, a DAO Utility Score is used to determine the daily emissions of HNT to each SubDAO treasury. The current equation for this calculation is noted below: Current: + +$\text{DAO Utility Score} = V \times D \times A$ + +where + +$V = \text{max}(1, veHNT_{DNP})$ + +$D = \text{max}(1, \sqrt{\text{DNP DCs burned in USD}})$ + $A = \text{max}(1, \sqrt[4]{\text{DNP Active Device Count} \times \text{DNP Device Activation Fee}})$ -This HIP proposes removing DNP Active Device Count from the A score, to have the equation equal the following: + +This HIP proposes adjusting only the A score to remove the DNP Active Device Count from the A score, to have the equation equal the following: Proposed: + +$\text{DAO Utility Score} = V \times D \times A$ + +where + +$V = \text{max}(1, veHNT_{DNP})$ + +$D = \text{max}(1, \sqrt{\text{DNP DCs burned in USD}})$ + $A = \text{max}(1, \sqrt[4]{\text{DNP Active Device Count}})$ ## Stakeholders From 550b48cd9f12d633cdbc71f26fa5b647e2edb3a1 Mon Sep 17 00:00:00 2001 From: Andy Zyvoloski <104723888+heatedlime@users.noreply.github.com> Date: Thu, 15 Jun 2023 16:19:43 -0500 Subject: [PATCH 05/10] Update 0000-adjustment-of-dao-utility-a-score-to-remove-onboarding-fees.md Addressed comments of reviewers, added additional stakeholders and alternatives. --- ...of-dao-utility-a-score-to-remove-onboarding-fees.md | 10 ++++++---- 1 file changed, 6 insertions(+), 4 deletions(-) diff --git a/0000-adjustment-of-dao-utility-a-score-to-remove-onboarding-fees.md b/0000-adjustment-of-dao-utility-a-score-to-remove-onboarding-fees.md index 312c70838..6965a41fe 100644 --- a/0000-adjustment-of-dao-utility-a-score-to-remove-onboarding-fees.md +++ b/0000-adjustment-of-dao-utility-a-score-to-remove-onboarding-fees.md @@ -45,9 +45,11 @@ $A = \text{max}(1, \sqrt[4]{\text{DNP Active Device Count}})$ ## Stakeholders The proposed changes to the A score calculation in the DAO score will impact various stakeholders within the Helium ecosystem. These stakeholders include: -SubDAO Treasuries: SubDAO Treasuries may experience a potential change in the distribution of HNT emissions. The removal of the onboarding fee from the A score calculation may encourage more device owners to participate in subDAO networks. +Hotspot Makers: Some Hotspot Makers hold a large quantity of DC within their maker wallet. If this HIP should pass, and a new HIP to lower IoT onboarding fees is proposed, this may leave makers with a large sum of DC within their maker wallets. However, this HIP does not directly impact Hotspot Makers, as another HIP would need to be implemented to reduce IoT onboard fees. -HNT Owners: The removal of onboarding fees from the A Score may result in networks removing onboarding fees from their network, which will result in less HNT burn. +SubDAO Treasuries: SubDAO Treasuries will experience a change in the distribution of daily HNT emissions. The removal of the onboarding fee from the A score calculation may encourage more device owners to participate in subDAO networks. + +HNT Owners: The removal of onboarding fees from the A Score may result in networks removing onboarding fees from their network, which will result in less HNT burn, which may cause a decrease in demand for HNT. ## Drawbacks: @@ -59,10 +61,10 @@ Impact on Existing SubDAOs: Existing subDAOs that have been operating with the c ## Alternatives Maintaining the Current Calculation: One alternative would be to keep the current A score calculation, with the onboarding fee included. However, doing so might lead to unnecessary complexity, as managing the onboarding fee using on-chain mechanisms like NFTs and storing the associated data would require additional resources and potentially increase costs. -Adjusting the A Score Calculation Differently: Another option is to explore different adjustments to the A score calculation that might achieve similar goals while addressing the potential drawbacks of this proposal. This could include introducing new parameters or modifying the existing calculation in other ways. +Adjusting the A Score Calculation Differently: Another option is to explore different adjustments to the A score calculation that might achieve similar goals while addressing the potential drawbacks of this proposal. This could include introducing new parameters to calculate the total amount of HNT burned for onboarding for reach network, vs only using the current fee. However, since the IoT network had such a huge head start, and almost 1 million hotspots onboarded but not active, this metric would heavily favor the IoT network and their HNT emissions. ## Deployment Impact -The Helium Foundation will need to adjust the A Score Calculation of the DAO Utility Score to remove onboarding fees. +The Helium Foundation will need to adjust the code for the A Score Calculation of the DAO Utility Score to remove onboarding fees. ## Success Metrics The success metric will be the HNT daily emissions being correctly recalculated to exclude onboarding fees from the A Score. From 98b5974aeafdee48c610948edae5ddf1cc792907 Mon Sep 17 00:00:00 2001 From: Andy Zyvoloski <104723888+heatedlime@users.noreply.github.com> Date: Thu, 15 Jun 2023 16:29:08 -0500 Subject: [PATCH 06/10] Update 0000-adjustment-of-dao-utility-a-score-to-remove-onboarding-fees.md Update made to request HF adjust the code. --- ...justment-of-dao-utility-a-score-to-remove-onboarding-fees.md | 2 +- 1 file changed, 1 insertion(+), 1 deletion(-) diff --git a/0000-adjustment-of-dao-utility-a-score-to-remove-onboarding-fees.md b/0000-adjustment-of-dao-utility-a-score-to-remove-onboarding-fees.md index 6965a41fe..664156a0d 100644 --- a/0000-adjustment-of-dao-utility-a-score-to-remove-onboarding-fees.md +++ b/0000-adjustment-of-dao-utility-a-score-to-remove-onboarding-fees.md @@ -64,7 +64,7 @@ Maintaining the Current Calculation: One alternative would be to keep the curren Adjusting the A Score Calculation Differently: Another option is to explore different adjustments to the A score calculation that might achieve similar goals while addressing the potential drawbacks of this proposal. This could include introducing new parameters to calculate the total amount of HNT burned for onboarding for reach network, vs only using the current fee. However, since the IoT network had such a huge head start, and almost 1 million hotspots onboarded but not active, this metric would heavily favor the IoT network and their HNT emissions. ## Deployment Impact -The Helium Foundation will need to adjust the code for the A Score Calculation of the DAO Utility Score to remove onboarding fees. +This HIP requests that the Helium Foundation adjust the code for the A Score Calculation of the DAO Utility Score to remove onboarding fees. ## Success Metrics The success metric will be the HNT daily emissions being correctly recalculated to exclude onboarding fees from the A Score. From a8fd7cd1f8ae38d79f8db1849ef35919f6e29782 Mon Sep 17 00:00:00 2001 From: Andy Zyvoloski <104723888+heatedlime@users.noreply.github.com> Date: Thu, 15 Jun 2023 20:20:17 -0500 Subject: [PATCH 07/10] Update 0000-adjustment-of-dao-utility-a-score-to-remove-onboarding-fees.md made edits to provide additional clarity. --- ...ility-a-score-to-remove-onboarding-fees.md | 26 +++++++++++-------- 1 file changed, 15 insertions(+), 11 deletions(-) diff --git a/0000-adjustment-of-dao-utility-a-score-to-remove-onboarding-fees.md b/0000-adjustment-of-dao-utility-a-score-to-remove-onboarding-fees.md index 664156a0d..e0d598cdc 100644 --- a/0000-adjustment-of-dao-utility-a-score-to-remove-onboarding-fees.md +++ b/0000-adjustment-of-dao-utility-a-score-to-remove-onboarding-fees.md @@ -1,4 +1,4 @@ -# HIP XX: Adjustment of DAO Utility A Score to Remove Onboarding Fees +# HIP XX: Adjustment of DAO Utility A Score - Authors: [Gateholder](https://github.com/gateholder) & [Andy Zyvoloski](https://github.com/heatedlime) - Start Date: 6/15/2023 - Category: Technical & Economic @@ -7,10 +7,12 @@ - Voting Requirements: veHNT ## Summary -This proposal suggests removing the DNP Device Activation Fee (AKA onboarding fee) from the DAO Utility Score. +This proposal suggests removing the DNP Device Activation Fee (AKA onboarding fee) from the DAO Utility Score A factor. ## Motivation -Currently, the A Score factors includes Active Device Count multiplied by the current onboarding fee for each device for that network. As written, this currently discourages networks from lowering their device onboarding fee to make it more affordable to add and onboard devices to the network, since lowering their onboarding fee will ultimately lower that SubDAO's A score. As currently written, lowering onboarding fees would result in lower daily HNT emissions to that SubDAOs Treasury. This also creates a higher barrier of entry for each network, which may discourage the purchase of new equipment. As being a network of networks, the Helium Community should encourage the expansion of its sub networks, and make it more affordable for others to join. +Currently, the A factor in the DAO Utility Score equates to Active Device Count multiplied by the current onboarding fee for each device on that network to the fourth root. As currently written, this discourages SubDAO networks from lowering their device onboarding fee, as doing so would lower their A factor. As a result of a decreased A factor, the daily HNT emissions within that SubDAO would decrease. + +Further, High onboarding fees make it less affordable for deployers to onboard new devices to that SubDAO network, which creates a higher barrier of entry. As being a network of networks, the Helium Community should encourage the expansion of its SubDAO networks, and make it more affordable for others to join. ## Detailed Explanation As implemented in HIP51, a DAO Utility Score is used to determine the daily emissions of HNT to each SubDAO treasury. The current equation for this calculation is noted below: @@ -42,14 +44,17 @@ $D = \text{max}(1, \sqrt{\text{DNP DCs burned in USD}})$ $A = \text{max}(1, \sqrt[4]{\text{DNP Active Device Count}})$ + +Note, this HIP does not propose any changes to any current onboarding fees. Any changes to current onboarding fees are set by each SubDAO. + ## Stakeholders -The proposed changes to the A score calculation in the DAO score will impact various stakeholders within the Helium ecosystem. These stakeholders include: +The proposed changes to the A factor calculation in the DAO Utility Score will impact various stakeholders within the Helium ecosystem. These stakeholders include: -Hotspot Makers: Some Hotspot Makers hold a large quantity of DC within their maker wallet. If this HIP should pass, and a new HIP to lower IoT onboarding fees is proposed, this may leave makers with a large sum of DC within their maker wallets. However, this HIP does not directly impact Hotspot Makers, as another HIP would need to be implemented to reduce IoT onboard fees. +Hotspot Makers: Some Hotspot Makers hold a large quantity of DC within their maker wallet. If this HIP should pass, and a new HIP to lower IoT onboarding fees is proposed by the IoT SubDAO, this may leave makers with a large sum of DC within their maker wallets. However, this HIP does not directly impact Hotspot Makers, as another HIP would need to be implemented to reduce IoT onboard fees. -SubDAO Treasuries: SubDAO Treasuries will experience a change in the distribution of daily HNT emissions. The removal of the onboarding fee from the A score calculation may encourage more device owners to participate in subDAO networks. +SubDAO Treasuries: SubDAO Treasuries will experience a change in the distribution of daily HNT emissions. The removal of the onboarding fee from the A factor calculation may encourage more device owners to participate in subDAO networks. -HNT Owners: The removal of onboarding fees from the A Score may result in networks removing onboarding fees from their network, which will result in less HNT burn, which may cause a decrease in demand for HNT. +HNT Owners: The removal of onboarding fees from the A factor may result in SubDAO networks lowering their onboarding fees, which would result in less HNT burn and a decrease in demand for HNT. ## Drawbacks: @@ -57,14 +62,13 @@ While the proposed changes to the A score calculation aim to improve the distrib Impact on Existing SubDAOs: Existing subDAOs that have been operating with the current A score calculation may be negatively affected by the proposed changes. The redistribution of HNT emissions could lead to disagreements or dissatisfaction among some stakeholders, particularly if they perceive the changes as unfavorable to their interests. - ## Alternatives -Maintaining the Current Calculation: One alternative would be to keep the current A score calculation, with the onboarding fee included. However, doing so might lead to unnecessary complexity, as managing the onboarding fee using on-chain mechanisms like NFTs and storing the associated data would require additional resources and potentially increase costs. +Maintaining the Current Calculation: One alternative would be to keep the current A factor calculation, with the onboarding fee included. However, doing so might lead to unnecessary complexity, as this would force other SubDAOs to implement onboarding fees to increase their HNT emissions. This would require the buildout of additional backend infastructure to be built by Nova or the Helium Foundation, which is estimated to take around 3 months -Adjusting the A Score Calculation Differently: Another option is to explore different adjustments to the A score calculation that might achieve similar goals while addressing the potential drawbacks of this proposal. This could include introducing new parameters to calculate the total amount of HNT burned for onboarding for reach network, vs only using the current fee. However, since the IoT network had such a huge head start, and almost 1 million hotspots onboarded but not active, this metric would heavily favor the IoT network and their HNT emissions. +Adjusting the A Score Calculation Differently: Another option is to explore different adjustments to the A score calculation that might achieve similar goals while addressing the potential drawbacks of this proposal. This could include introducing new parameters to calculate the total amount of HNT burned for onboarding for each SubDAO network, vs only using the current fee. However, since the IoT network had a large head start, and almost 1 million hotspots onboarded to the network, this metric would heavily favor the IoT network and disproportionately increase their HNT emissions. ## Deployment Impact -This HIP requests that the Helium Foundation adjust the code for the A Score Calculation of the DAO Utility Score to remove onboarding fees. +This HIP requests that the Helium Foundation adjust the code for the A factor Calculation within the DAO Utility Score to remove onboarding fees. ## Success Metrics The success metric will be the HNT daily emissions being correctly recalculated to exclude onboarding fees from the A Score. From cfb8ded5564fdc905d0e4edd98e6551adc030612 Mon Sep 17 00:00:00 2001 From: Andy Zyvoloski <104723888+heatedlime@users.noreply.github.com> Date: Fri, 16 Jun 2023 10:34:59 -0500 Subject: [PATCH 08/10] Update and rename 0000-adjustment-of-dao-utility-a-score-to-remove-onboarding-fees.md to 0000-adjustment-of-dao-utility-a-score.md Made gramatical changes --- ... 0000-adjustment-of-dao-utility-a-score.md | 24 +++++++++---------- 1 file changed, 12 insertions(+), 12 deletions(-) rename 0000-adjustment-of-dao-utility-a-score-to-remove-onboarding-fees.md => 0000-adjustment-of-dao-utility-a-score.md (61%) diff --git a/0000-adjustment-of-dao-utility-a-score-to-remove-onboarding-fees.md b/0000-adjustment-of-dao-utility-a-score.md similarity index 61% rename from 0000-adjustment-of-dao-utility-a-score-to-remove-onboarding-fees.md rename to 0000-adjustment-of-dao-utility-a-score.md index e0d598cdc..e3e7a5b97 100644 --- a/0000-adjustment-of-dao-utility-a-score-to-remove-onboarding-fees.md +++ b/0000-adjustment-of-dao-utility-a-score.md @@ -7,15 +7,15 @@ - Voting Requirements: veHNT ## Summary -This proposal suggests removing the DNP Device Activation Fee (AKA onboarding fee) from the DAO Utility Score A factor. +This proposal suggests removing the DNP Device Activation Fee (AKA onboarding fee) from the DAO Utility A Score. ## Motivation -Currently, the A factor in the DAO Utility Score equates to Active Device Count multiplied by the current onboarding fee for each device on that network to the fourth root. As currently written, this discourages SubDAO networks from lowering their device onboarding fee, as doing so would lower their A factor. As a result of a decreased A factor, the daily HNT emissions within that SubDAO would decrease. +Currently, the A factor in the DAO Utility Score equates to Active Device Count multiplied by the current onboarding fee for each device on that network to the fourth root. As currently written, this discourages SubDAO networks from lowering their device onboarding fee, as doing so would lower their A Score. As a result of a decreased A Score, the daily HNT emissions within that SubDAO would decrease. Further, High onboarding fees make it less affordable for deployers to onboard new devices to that SubDAO network, which creates a higher barrier of entry. As being a network of networks, the Helium Community should encourage the expansion of its SubDAO networks, and make it more affordable for others to join. ## Detailed Explanation -As implemented in HIP51, a DAO Utility Score is used to determine the daily emissions of HNT to each SubDAO treasury. The current equation for this calculation is noted below: +As implemented in HIP 51, a DAO Utility Score is used to determine the daily emissions of HNT to each SubDAO treasury. The current equation for this calculation is noted below: Current: @@ -30,7 +30,7 @@ $D = \text{max}(1, \sqrt{\text{DNP DCs burned in USD}})$ $A = \text{max}(1, \sqrt[4]{\text{DNP Active Device Count} \times \text{DNP Device Activation Fee}})$ -This HIP proposes adjusting only the A score to remove the DNP Active Device Count from the A score, to have the equation equal the following: +This HIP proposes adjusting only the A Score to remove the DNP Active Device Count from the score, to have the equation equal the following: Proposed: @@ -48,27 +48,27 @@ $A = \text{max}(1, \sqrt[4]{\text{DNP Active Device Count}})$ Note, this HIP does not propose any changes to any current onboarding fees. Any changes to current onboarding fees are set by each SubDAO. ## Stakeholders -The proposed changes to the A factor calculation in the DAO Utility Score will impact various stakeholders within the Helium ecosystem. These stakeholders include: +The proposed changes to the A Score calculation in the DAO Utility Score will impact various stakeholders within the Helium ecosystem. These stakeholders include: Hotspot Makers: Some Hotspot Makers hold a large quantity of DC within their maker wallet. If this HIP should pass, and a new HIP to lower IoT onboarding fees is proposed by the IoT SubDAO, this may leave makers with a large sum of DC within their maker wallets. However, this HIP does not directly impact Hotspot Makers, as another HIP would need to be implemented to reduce IoT onboard fees. -SubDAO Treasuries: SubDAO Treasuries will experience a change in the distribution of daily HNT emissions. The removal of the onboarding fee from the A factor calculation may encourage more device owners to participate in subDAO networks. +SubDAO Treasuries: SubDAO Treasuries will experience a change in the distribution of daily HNT emissions. The removal of the onboarding fee from the A Score calculation may encourage more device owners to participate in subDAO networks. -HNT Owners: The removal of onboarding fees from the A factor may result in SubDAO networks lowering their onboarding fees, which would result in less HNT burn and a decrease in demand for HNT. +HNT Owners: The removal of onboarding fees from the A Score may result in SubDAO networks lowering their onboarding fees, which would result in less HNT burn and a decrease in demand for HNT. However, HNT burned for onboarding fees are not an organic indicator of the overall usage of the network. ## Drawbacks: -While the proposed changes to the A score calculation aim to improve the distribution of HNT emissions in the Helium ecosystem, there are potential drawbacks to consider: +While the proposed changes to the A Score calculation aim to improve the distribution of HNT emissions in the Helium ecosystem, there are potential drawbacks to consider: -Impact on Existing SubDAOs: Existing subDAOs that have been operating with the current A score calculation may be negatively affected by the proposed changes. The redistribution of HNT emissions could lead to disagreements or dissatisfaction among some stakeholders, particularly if they perceive the changes as unfavorable to their interests. +Impact on Existing SubDAOs: Existing subDAOs that have been operating with the current A Score calculation may be negatively affected by the proposed changes. The redistribution of HNT emissions could lead to disagreements or dissatisfaction among some stakeholders, particularly if they perceive the changes as unfavorable to their interests. ## Alternatives -Maintaining the Current Calculation: One alternative would be to keep the current A factor calculation, with the onboarding fee included. However, doing so might lead to unnecessary complexity, as this would force other SubDAOs to implement onboarding fees to increase their HNT emissions. This would require the buildout of additional backend infastructure to be built by Nova or the Helium Foundation, which is estimated to take around 3 months +Maintaining the Current Calculation: One alternative would be to keep the current A Score calculation, with the onboarding fee included. However, doing so might lead to unnecessary complexity, as this would force other SubDAOs to implement onboarding fees to increase their HNT emissions. This would require the buildout of additional backend infastructure to be built by Nova or the Helium Foundation, which is estimated to take around 3 months -Adjusting the A Score Calculation Differently: Another option is to explore different adjustments to the A score calculation that might achieve similar goals while addressing the potential drawbacks of this proposal. This could include introducing new parameters to calculate the total amount of HNT burned for onboarding for each SubDAO network, vs only using the current fee. However, since the IoT network had a large head start, and almost 1 million hotspots onboarded to the network, this metric would heavily favor the IoT network and disproportionately increase their HNT emissions. +Adjusting the A Score Calculation Differently: Another option is to explore different adjustments to the A Score calculation that might achieve similar goals while addressing the potential drawbacks of this proposal. This could include introducing new parameters to calculate the total amount of HNT burned for onboarding for each SubDAO network, vs only using the current fee. However, since the IoT network had a significant head start, and almost 1 million hotspots onboarded to the network, this metric would heavily favor the IoT network and disproportionately increase their HNT emissions. ## Deployment Impact -This HIP requests that the Helium Foundation adjust the code for the A factor Calculation within the DAO Utility Score to remove onboarding fees. +This HIP requests that the Helium Foundation adjust the code for the A Score calculation within the DAO Utility Score to remove onboarding fees. ## Success Metrics The success metric will be the HNT daily emissions being correctly recalculated to exclude onboarding fees from the A Score. From ab4e16c8e565272b5ef37a9004893abeece3f219 Mon Sep 17 00:00:00 2001 From: HIP Editors <93347218+hiptron@users.noreply.github.com> Date: Fri, 16 Jun 2023 19:21:35 -0400 Subject: [PATCH 09/10] Assign HIP number --- ...lity-a-score.md => 0088-adjustment-of-dao-utility-a-score.md | 2 +- 1 file changed, 1 insertion(+), 1 deletion(-) rename 0000-adjustment-of-dao-utility-a-score.md => 0088-adjustment-of-dao-utility-a-score.md (99%) diff --git a/0000-adjustment-of-dao-utility-a-score.md b/0088-adjustment-of-dao-utility-a-score.md similarity index 99% rename from 0000-adjustment-of-dao-utility-a-score.md rename to 0088-adjustment-of-dao-utility-a-score.md index e3e7a5b97..4642e3a49 100644 --- a/0000-adjustment-of-dao-utility-a-score.md +++ b/0088-adjustment-of-dao-utility-a-score.md @@ -1,4 +1,4 @@ -# HIP XX: Adjustment of DAO Utility A Score +# HIP 88: Adjustment of DAO Utility A Score - Authors: [Gateholder](https://github.com/gateholder) & [Andy Zyvoloski](https://github.com/heatedlime) - Start Date: 6/15/2023 - Category: Technical & Economic From 6404dd60088201ea1d59dd16b741dee1db858261 Mon Sep 17 00:00:00 2001 From: HIP Editors <93347218+hiptron@users.noreply.github.com> Date: Fri, 16 Jun 2023 19:22:53 -0400 Subject: [PATCH 10/10] Update 0088-adjustment-of-dao-utility-a-score.md update links --- 0088-adjustment-of-dao-utility-a-score.md | 4 ++-- 1 file changed, 2 insertions(+), 2 deletions(-) diff --git a/0088-adjustment-of-dao-utility-a-score.md b/0088-adjustment-of-dao-utility-a-score.md index 4642e3a49..0f1725dff 100644 --- a/0088-adjustment-of-dao-utility-a-score.md +++ b/0088-adjustment-of-dao-utility-a-score.md @@ -2,8 +2,8 @@ - Authors: [Gateholder](https://github.com/gateholder) & [Andy Zyvoloski](https://github.com/heatedlime) - Start Date: 6/15/2023 - Category: Technical & Economic -- Original HIP PR: # -- Tracking Issue: # +- Original HIP PR: [#702](https://github.com/helium/HIP/pull/702) +- Tracking Issue: [#707](https://github.com/helium/HIP/issues/707) - Voting Requirements: veHNT ## Summary