HOPR DAO Fulfilment
The second HOPR DAO experiment ran from October 12th to 21st. The community voted on proposals for how to spend the HOPR tokens and DAI earned by the DAO as fees for providing liquidity. There were a lot of great proposals for how to allocate the funds, and ultimately eight were selected after the three HOPR governance phases: proposal, referendum and vote.
It’s now time to reveal how the eight proposals will be implemented. The exact details and time frames vary, but all proposals will be partly or fully implemented during the Hop on Board event, which runs from now until the end of April. If you’re a HOPR staker (or planning to become one), you may be particularly interested in the first and second DAI proposals, as these involve extra rewards on top of the standard staking and NFT rewards provided by the HOPR Association!
What Happened in the Second DAO Experiment?
First, a quick recap and an explanation of the numbers involved here.
For anyone new to HOPR, the HOPR DAO controls the funds raised during the HOPR token launch. These were initially used to provide liquidity in a Uniswap v2 pool, before being moved to a Uniswap v3 pool as a result of the first HOPR DAO experiment in May. During that time, the DAO was accruing fees for trades made with the pool. This resulted in 485,355 HOPR tokens and 168,763 DAI available for allocation to proposals.
Proposals were made separately for each token. After the vote, the top four proposals were selected, and the budget was divided between them in a 40:30:20:10 split.
HOPR Token Proposals
Eight HOPR Token Proposals were pre-written by the HOPR Association, and then put to the community for a vote. The winning four will be enacted as follows:
First HOPR Token Proposal: Liquidity Incentives
Budget: 194,142 HOPR tokens (approx. $44k)
The winning 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 will set up an HOPR / xDAI pool on Swapr DEX.
The full budget of 194,142 HOPR tokens will be allocated as incentives here, and there is a proposal to supplement this with 15,000 SWPR tokens.
You can view the DXdao proposal here. If you have GEN tokens, we’d appreciate a YES vote to ensure this gets enacted.
This is great news for the HOPR token, and a great example of DAO coordination.
Read the original proposal in the HOPR forum here.
Second HOPR Token Proposal: Online Marketing
Budget: 145,606 HOPR tokens (approx. $33k)
The second proposal is much broader in scope: simply to use the HOPR tokens to support marketing efforts, something we know the community is very keen for us to push. Since marketing is often about timing and surprise, we won’t go into too much more detail here, but we’re engaging with external content providers to produce some great content to support some events later in the Hop on Board campaign.
Read the original proposal in the HOPR forum here.
Third HOPR Token Proposal: Hackathons (Live or Online)
Budget: 97,071 HOPR tokens (approx. $22k)
As the HOPR protocol enters the next stage, we’re excited to start building dApps and services on top of it. Hackathons are a great way to find surprising use cases and produce proofs of concept. Around half of the tokens from this DAO proposal will be used as a supplementary prize for a hackathon at ETHDenver in mid-February (there’s a cap on additional prizes set by the ETHDenver team); the rest will be used for similar events slightly later in the year.
Read the original proposal in the HOPR forum here.
Fourth 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.
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. We’ll have more details for you soon, but these HOPR tokens will be used to kickstart this new collaboration by providing incentives.
Read the original proposal in the HOPR forum here.
DAI Proposals
The DAI half of the vote was fully open to the community to make proposals, but these proposals were advisory, due to the legal complications of using crypto to interact with the real world. As it happens, it’s been possible to implement the proposals almost entirely as written. Here’s how these proposals will be implemented as part of Hop on Board.
First DAI Proposal: Extra Rewards for Stakers
Budget: 67,505 DAI (approx. $67k)
The winning 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 staking program. There was a stipulation that these tokens be locked for three months.
To make this happen, we’ll first use Dune Analytics to calculate the claimed rewards from everyone in Season 1 of the staking program. Then, we’ll cross-reference this with the Season 2 stakes, and anyone who has at least 100 HOPR tokens staked in Season 2 will be eligible for a share of these rewards, which will be distributed three months after the deadline.
People who stake in Season 2 for the first time will also be eligible to receive a share of these rewards, provided they stake at least 100 HOPR tokens before the deadline. The 100 HOPR threshold is just a token amount to eliminate any bots and Sybils. Rewards will be calculated based on how many tokens you earned in both seasons of the staking program, between the start of Season 1 on July 27th 2021 and the analytics snapshot deadline announced soon.
To receive your full share of bonus tokens, you MUST stake in Season 2 using the same address as Season 1.
Read the full original proposal on the HOPR forum here.
Second 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 parts of proposal 1 and proposal 4. According to the proposal, the budget should be split 4:4:7 between node runners, stakers, and grants.
To achieve this, 13.5k DAI will be distributed to people on the cover traffic whitelist, which you can access by staking in Season 2 of the HOPR Staking Program and locking sufficient HOPR Boost NFTs.
Another 13.5k DAI will be distributed to people who are staked in Season 2 of the staking program, but who did NOT gain access to the cover traffic whitelist.
The remaining 23,628 DAI will be added to the budget for the fourth DAI proposal.
Read the full original proposal on the HOPR forum here.
Third 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 will use DAI to provide supplementary budget to support the four winning HOPR proposals, as necessary.
Read the full original proposal on the HOPR forum here.
Fourth 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 the second DAI proposal.
The HOPR Association has already launched a bounty program to promote dApp development on top of the HOPR protocol. As this program matures, we intend to supplement it with other funding and incentives apart from bounties. To achieve this, the plan is for HOPR dApps to be entered into the next [Gitcoin] CLR round. This is a grant funding round 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.
Read the full original proposal on the HOPR forum here.
What Next?
We’ll keep you updated on the progress of all these initiatives over the coming weeks and months. There will also be a third DAO experiment as part of the Hop on Board event. Thanks again to everyone who participated in the governance decisions which got us to this point. It’s extremely exciting to be at the forefront of this new type of decision-making, and to have the opportunity to collaborate with so many like-minded projects.
Sebastian Bürgel
HOPR Founder
Website: https://www.hoprnet.org
Testnet: https://network.hoprnet.org
Twitter: https://twitter.com/hoprnet
Telegram: https://t.me/hoprnet
Discord: https://discord.gg/dEAWC4G
LinkedIn: https://www.linkedin.com/company/hoprnet
Forum: https://forum.hoprnet.org
Github: https://github.com/hoprnet
