Update: Off-Chain NII Fees Distributed
The nahmii team reached an important milestone last week when we completed the payment run for off-chain transaction fees from accrual period one. From the current accrual period onwards, only NII tokens held on-chain in a wallet that you control will be eligible to accrue transaction fees in this way.
You may remember that we promised the community that any NII tokens held within nahmii would accrue transaction fees for the first accrual period only. With the first accrual period now closed, we were able distribute the fees for these tokens in HBT, NII and ETH. Read on to find out more about the fee payment and what’s next for the team.
Accruing Fees
The majority of NII tokens are currently held in two Ethereum addresses: a time-locked contract which funds the ongoing monthly airdriips and nahmii’s ClientFund. As of today (26th May 2020), 85% of NII tokens are in the time-locked contract and almost 9% are in the ClientFund. This is shown in the pie chart below:
Tokens inside the time-locked contract are not eligible to accrue transaction fees within nahmii and that address is ‘blacklisted’ for the purpose of the calculations. Similarly, tokens inside the ClientFund will no longer be eligible to accrue transaction fees after accrual period one. You will therefore need to withdraw you tokens from nahmii to ‘activate’ them for the purpose of accruing fees. We have written a simple guide explaining how you can withdraw your NII tokens using hubii core, our wallet management product; you can view the guide here.
One-Off Payment
Today, NII tokens held within the ClientFund contract do not accrue transaction fees; however, we applied this rule from accrual period two onwards not accrual period one. That means that hubii needed to claim the transaction fees for accrual period one on behalf of tokens held in the ClientFund, then distribute these tokens to eligible nahmii wallets. Importantly, this was a one-off payment: tokens held off-chain within nahmii are no longer eligible to accrue transaction fees and you must withdraw them if you want to accrue fees from now on.
This one-off payment was unique, as it required hubii to do something on behalf of token holders. Normally, the process of claiming fees is fully trustless and controlled by the token holder. Using nahmii’s smart contracts you can claim for your accrued transaction fees directly or just view the amount that you could claim today. The easiest way to claim transaction fees or check your eligible amount is to use hubii core, our wallet management product. We have written a guide to claiming for accrued fees using hubii core here.
This ability to check before claiming is important: sometimes the cost of claiming your fees will be more than the amount accrued, so you can choose to wait until claiming is worthwhile.
Technical Improvements and Fixes
The process of paying out the transaction fees to off-chain NII holders required almost 10,000 payments across three different token types (NII, HBT, ETH). Unlike a normal airdriip, which makes allowances for the transaction fee within nahmii before sending the payment, hubii decided to cover the cost of sending these payments through nahmii as a thank you to our loyal token holders. This required a tweak to the nahmii airdriip payment script, as did the need to work in multiple token types.
Similarly, we also needed to fix an issue with claiming fees by block range. This is an advanced feature of nahmii’s smart contracts, which will only be relevant for wallets which see a large number of transactions within an accrual period (such as an exchange or nahmii’s ClientFund). Fees can be claimed by accrual period (or accrual period range) or block number range; 99.9% of users will only ever claim by accrual period, so this was a niche issue to address.
Changes to the payment script and smart contracts required an update to nahmii’s CLI, SDK and smart contracts on both mainnet and Ropsten. Once these updates were completed and the team were satisfied with the testing, we completed the payment run across all three currencies on mainnet last week.
What’s Next?
With all payments off-chain for accrual period one now finished, token holders will be able to claim all future transaction fees without relying on hubii. This marks the effective completion of nahmii’s basic architecture as an end-to-end system: users can deposit tokens into the ClientFund contract, make high-performance transactions off-chain within nahmii, then settle and withdraw their tokens out of the ClientFund back to their Ethereum wallet. Fees generated off-chain are automatically paid into one smart contract at the time of settlement, then transferred into a second smart contract once the current accrual period ends. From there, users can claim their accrued fees from this second contract through a fully trustless process.
The hubii team will now focus on two key goals: first, the technical team are working hard on further performance improvements using Azure. This will then lead to completing our work on trades, subject to the needs of the business. Importantly, our product roadmap is under constant review in light of any commercial partnerships signed by the business development side of the company. This is the second key goal: adoption, either by bringing multiple products to the protocol or through one large project. We are currently pursuing both options, which include the possibility of porting nahmii to other public and private blockchains.
As always, stay tuned for further updates. For the very latest news or to contact the team directly, please join our Telegram channel here and follow us on twitter.
