DAO Fulfilment Update
In October 2021 the HOPR DAO was consulted to decide how to allocate the almost $300k in HOPR and DAI tokens which had been generated in fees from the DAO’s liquidity provision on Uniswap.
This was the second of our HOPR Governance Experiments, and the result was eight different proposals: four for spending DAI and four for spending HOPR tokens.
The HOPR Association has been working hard to fulfill all eight of these proposals, and this week we’d love to update you on the progress. As a project that believes deeply in web3 and Open Source values, it’s important for us to have maximum transparency.
You can read about the HOPR DAO v0.2 governance experiment here and see the full list of winning proposals here. The vote itself can be found here, and the original proposals are all viewable in the HOPR forum. Budgets were calculated in January 2022, when the first update article was published.
DAI Proposal: Extra Rewards for Stakers
Budget: 67,505 DAI (approx. $67k) converted to 391,785 HOPR tokens
This proposal was to use some of the DAI to buy HOPR from the market and distribute them to stakers proportional to the total rewards they earned throughout the first season of the HOPR staking program. There was a stipulation that these tokens be locked for three months.
On March 8 the DAO removed 67,505 DAI from the Uniswap liquidity pool and swapped them for 391,785 HOPR tokens. You can see the transaction here.
We used Dune analytics to determine the eligible staking addresses and calculate their share of the rewards. The snapshot was taken on February 17th, and airdropped on May 18th in two transactions: First transaction Second transaction
DAI Proposal: Grants for dApp Development
Budget: 40,505 DAI (approx $40k) made up of 16,877 DAI directly for this proposal and 23,628 DAI carried over from another DAI proposal: Grants for Node Runners and HODLrs.
As the HOPR ecosystem expands, it’s important to showcase the wide variety of dApps which can be built on top of HOPR and which will benefit from the privacy protections HOPR provides. The HOPR Association has already launched a bounty program to promote dApp development on top of the HOPR protocol.
Bounties are great for producing prototypes and proofs of concept, but we’d also love to see more production-level dApps like our own myne.chat example. To achieve this, the plan is for HOPR dApps to be entered into Gitcoin CLR Round 15. This is a grant funding program where Gitcoin uses a quadratic funding mechanism to provide fund matching. This will hopefully boost HOPR’s profile while providing higher rewards to applicants on top of the DAO-provided funds.
If you or your team would like to earn a share of $40k (plus matching), take a look at our available dApp bounties and our team can help you make something which will be ready to submit to the CLR Round when it launches in 3–6 months.
HOPR Token Proposal: Liquidity Incentives
Budget: 194,142 HOPR tokens (approx. $44k)
The HOPR DAO provides an enormous amount of liquidity on Uniswap v3 (the result of our first DAO experiment back in October 2021). In fact, HOPR has one of the deepest liquidity pools in crypto: it’s the 6th biggest DAI pairing on Uniswap by TVL (total value locked). This provides a huge amount of stability, which is particularly important in these turbulent times, but it’s also important to provide liquidity on other exchanges and chains so more people can be onboarded to the HOPR ecosystem.
This proposal was to provide liquidity incentives to expand the availability of the HOPR token, particularly on Gnosis Chain (formerly called xDAI Chain) where the current version of HOPR lives and where we host our testnets, staking program and more.
To implement this proposal, HOPR DAO and DXdao set up an HOPR / xDAI pool on Swapr DEX. The full budget of 194,142 HOPR tokens was allocated as incentives here, released in installments as each staking campaign ended. This ultimately increased to 226,428 HOPR tokens, with the difference being provided by the HOPR Association.
The transactions for this can be found here:
First transaction (64,714 HOPR tokens)
Second transaction (64,714 HOPR tokens)
Third transaction (97,000 HOPR tokens)
There have been five Swapr campaigns so far: the first was run with just Swapr tokens, while the second, third and fourth had an associated carrot campaign, where participants received carrot tokens depending on the average total value locked for the period.
The fifth campaign is ongoing and can be found here. Thanks to everyone who provided liquidity for these campaigns.
HOPR Token Proposal: Hackathons (Live or Online)
Budget: 97,071 HOPR tokens (approx. $22k)
A major goal of 2022 is to build a host of dApps and services on top of HOPR. Our bounty program will play a major role here, but hackathons are another great way to find surprising use cases and produce proofs of concept. Around half of the tokens from this DAO proposal were used as prizes for a hackathon at ETHDenver in mid-February. Unfortunately bounty participation was low throughout the event, but HOPR actually had one of the highest average submission rates, and we still got some awesome submissions! The unallocated bounty money will be returned to the budget.
$4,000 was paid out for the successful bounties. You can check out the results here and here. The payments for the bounties can be seen here and here (in person bounty, split between a team) and here and here (virtual bounty, also a two-person team).
ETH Denver also produced a great network visualization tool from the same team, but due to a confusion over the submission rules this was handled outside of the official program. You can find the code here.
The rest of this budget will be used for similar events slightly later in the year.
HOPR Token Proposal: Online Marketing
Budget: 145,606 HOPR tokens (approx. $33k)
This broad scope proposal was simply to use the HOPR tokens to support marketing efforts, something we know the community is very keen for us to push.
Spending for this has been ongoing. Some of the budget was spent hiring the videographer who recorded our time at ETHDenver. If you have checked out the awesome video, you can find it here! The original intent was to pay in HOPR tokens, but US agency regulations meant this wasn’t possible. The HOPR Association instead paid in fiat and will be reimbursed by the DAO.
Since the recent downturn, effective marketing strategies have shifted. We’re reevaluating how to assign this budget but you can look forward to a variety of traditional and more experimental marketing efforts over the next few months, all integrated with our revamped Hop on Board campaign. As always, we’ll keep you updated with details and receipts as the budget gets allocated.
UPDATE: As part of our partnership with DAppNode, HOPR tokens are distributed among the first buyers of HOPR branded DAppNode devices. The tokens for the first 50 devices were allocated from proposal four below. The transcation can be found here.
These buyers will also receive priority access to our network registry.
This was so popular that a second batch of 50 HOPR DAppNodes have been made available for purchase here, 45k HOPR were assigned to this, with budget taken from this proposal.
DAI Proposal: Provide DAI Funding to support HOPR proposals
Budget: 33,752 DAI (approx. $34k)
Where possible, we want to keep HOPR tokens as HOPR tokens. Converting them to fiat (or other crypto) generally exerts downward price pressure and is inefficient when the DAO also controls DAI. But HOPR tokens aren’t always an appropriate incentive or method of payment, particularly for offline services. Therefore, this proposal uses DAI to provide supplementary budget to support the four winning HOPR proposals, as necessary.
So far, a portion of this DAI was used to purchase a floor at the ETH Denver hackathon. This supported our hackathon proposal, where the bounties were paid in HOPR tokens. $4,000 (plus tax) was spent, which supplemented the HOPR Association’s sponsorship of $15k. You can see this as part of a larger transaction here.
HOPR Token Proposal: Grow the HOPR Hardware Node Network
Budget: 48,535 HOPR Tokens (approx. $11k.)
Although we’re happy to see so many people run HOPR nodes on the cloud, a truly robust decentralized HOPR network needs dedicated hardware nodes. Our ongoing partnership with AVADO has seen over 400 HOPR nodes dispatched to every corner of the world, and this figure continues to grow. We will continue to support and grow the AVADO network.
But choice is the essence of decentralizaton, and we’re excited to announce that a second branded HOPR node will soon be available from a different provider. These HOPR tokens will be used to kickstart this new collaboration by providing incentives. We still can’t reveal the precise details of the partnership, but news will be coming very soon!
This article will be updated throughout the week, so check back each day for more info on how the remaining DAO proposals are being fulfilled.
UPDATE: As part of our partnership with DAppNode, these HOPR tokens were distributed among the first 50 buyers of HOPR branded DAppNode devices. The transaction covering these tokens can be viewed here.
These buyers will also receive priority access to our network registry.
A second batch of HOPR DAppNodes is available for purchase here, 45k HOPR were assigned to this, with budget taken from the second proposal above.
DAI Proposal: Grants for Node Runners and HODLrs
Budget: 50,628 DAI (approx. $51k)
This second proposal had a very broad scope, which was determined to overlap with two other proposals: Grants for dApp Development and Extra Rewards for Stakers.
According to the proposal, the budget should be split 4:4:7 between node runners, stakers, and grants.
The original plan was to allocate these tokens during Staking Season 2 by assigning the first two portions of the budget to whitelisted and non-whitelisted node runners once the whitelist testing launched. Unfortunately the whitelist (now called Network Registry) was not implemented in time for this to happen. Development for the network registry has now reached the testing phase, however, so we’re confident that this plan is still feasible and can be implemented in the near future. You can follow the progress on network registry development in github.
The remaining 23,628 DAI will be added to the budget for the Grants for dApp Development DAI proposal, as explained earlier in this article.
Rik Krieger,
HOPR Co-Founder
Website: https://www.hoprnet.org
Twitter: https://twitter.com/hoprnet
Telegram: https://t.me/hoprnet
Discord: https://discord.gg/dEAWC4G
Forum: https://forum.hoprnet.org
Staking: https://stake.hoprnet.org
Bounties: https://bounties.hoprnet.org
