Taking into account the HIP 4 Original Proposal and the subsequent amendment and the recent renewal of the Delegate Program, delegates are required to self-report their lowest level of HOP delegation for the required time period to determine incentives to be paid to that particular delegate.
The new formula is as follows:
I = ((log(h) - 4.55) * 3500) * M
Where:
I = Incentives to be received
h = lowest level of HOP delegated that month
M = Multiplier based on consecutive participation periods
To calculate the multiplier (M), we can use the following formula:
M = 1 + (0.1 * P)
Where:
P = Number of consecutive completed 6-month participation periods (capped at a certain value, e.g., 5)
This multiplier starts at 0 for all delegates and increases by 0.1 for each consecutive completed 6-month participation period, capped at a certain value (e.g., 1.5 after five periods). In this case I think “completed” can be defined as any amount of participation above 0%.
Delegates can utilize this Dune Querry to find the lowest level of Hop within the time period.
Due to the changes made to the formula used to calculate delegate incentives, delegates would use this graph to determine their compensation using their lowest Hop for the specified period.
Each delegate would have to find out their minimum amount during the participation period via the Dune query. Then the delegate would go to the graph and replace x with the number they found from Dune, slide P to the number of consecutive periods they have participated as a delegate and get the final amount (circled).
Within this new system, a delegate participation period is = six months; therefore, for every six-month period that a delegate participates actively in Hop Governance by voting, and communicating the rationale, the delegate will get increased rewards.
Delegates can go ahead and report below in this thread.
The periods for consideration in this reporting cycle are March 10th - April 10th and April 11th - May 10th
