RFC: Renewal of the Hop Delegate Incentivization Trial
Authors: @Kene_StableLab, @Bobbay_StableLab & @fourpoops
Over the past six months, Hop DAO trialed delegate compensation to participate in Hop DAO Governance actively. This is a proposal to extend the Hop Delegate Incentivization Program
Through the delegate incentivisation trial over the past six months, delegates have been incentivised to actively participate in Hop DAO Governance by taking part in discussions on the forum, voting on proposals and ensuring to share their rationale for voting a particular way. This program has created a healthy culture of governance-related engagement in the Hop DAO.
Renewing this Hop Delegate Incentivization trial will ensure that the quality of Hop DAO does not decline.
This Incentivisation Program will retain the delegate talent that the Hop DAO has attracted; its continued existence will allow future delegates to join the Hop DAO and allocate resources to improving the Hop Protocol.
How did the program work?
Delegates are required to vote on proposals and communicate their rationale for voting in their delegate thread on the Hop DAO Forum.
Under the current Delegate Compensation Program, delegates are compensated using a formula where delegate incentives increase with the amount of HOP delegated, but in a decreasing fashion. This means that a small delegate will receive a greater incentive per voting weight than a large delegate, but a larger delegate will receive more.
Delegates utilise this Dune Querry to ascertain their lowest level of Hop for that month and use this visualization graph to ascertain the incentives they are due according to their lowest amount of Hop for that month.
Finally, delegates would self-report under a thread dedicated to reporting delegate eligibility each month. The following information would be required of a delegate.
Vote participation percent = (Number of proposals voted upon ÷ all proposals) * 100
Communication participation percentage = Number of proposals referenced with voting position and reasoning for that position ÷ all proposals ) * 100
Lowest Amount of Hop for the period
Incentives to be paid out.
Changes to the Program
Sequel to the feedback provided in this proposal, the following changes will be implemented in this proposal.
There shall be a new formula used to calculate incentives.
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)
P = Number of consecutive completed 6-month participation periods (capped at a certain value, e.g., 5)
This multiplier starts at 1 for new 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).
- The Participation rate would be removed; therefore, new delegates who reach the 90,000 threshold could join as delegates at any time.
- The incentive formula would be amended to include a Multiplier based on consecutive participation periods.
The primary import of these changes is that new delegates can join Hop Governance at any time, while old delegates are incentivized to continue participating.
There is no opt-in or opt-out mechanism. Delegates will have to self-report to receive compensation.
This proposal requests for the Hop Delegate Incentivization Program to be renewed for another six months; the program will retain all the guidelines and procedures laid down by the original proposal and its subsequent amendment.
At the time of writing this post, these are the delegates actively involved in the Hop DAO
- Synthetix Ambassadors
Within the past six months of this Delegate Incentivization Trial, a total of 85,129.21 HOP Tokens have been paid out to delegates. If this proposal passes, we are estimating that about 90,000 HOP tokens would be spent compensating delegates in the the next six months of the delegate program.
If this proposal passes, the Hop DAO Delegate Incentivization Program will continue for another six months.