HIP 78: Mobile subDAO Onboarding Fees

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HIP 78: Mobile subDAO Onboarding Fees

• Author(s): @ferebee
• Start Date: 2023-03-10
• Category: Economic, Technical
• Original HIP PR: subDAO Onboarding Fees HIP Draft #580
• Tracking Issue: HIP 78: Mobile subDAO Onboarding Fees #582

Summary

HIP-51 specifies the DAO Utility Score, which determines the distribution of HNT between all Helium subDAOs. The Hotspots of each subDAO count towards its Utility Score based on the onboarding fee set by that subDAO.

However, current MOBILE Hotspots, as introduced by FreedomFi, contain both an IOT Hotspot and a MOBILE Hotspot. While HIP-53 specifies that MOBILE Hotspots should burn a $40 onboarding fee, just like IOT Hotspots, the existing implementation only onboarded the IOT network component. All active MOBILE Hotspots have been onboarded to the IOT network, but no separate onboarding process for the MOBILE network was ever implemented.

As a result, no onboarding fees have yet been burned towards the MOBILE subDAO.

This prevents the tokenomics based on DAO Utility Score, as defined in HIP-51, from working as designed.

HIP 78 solves this problem by requiring that Hotspots participating in a particular Helium subDAO must burn an onboarding fee towards that subDAO. The MOBILE subDAO onboarding fee has been set at $40 by HIP-53. In the future, fee schedules will be determined by subDAO governance.

A mechanism is specified whereby the existing MOBILE Hotspots may be onboarded retroactively.

Motivation

The current situation impairs the growth of the Helium MOBILE subDAO by artificially suppressing its DAO Utility Score, limiting the HNT emitted to the MOBILE subDAO treasury, the value of the MOBILE tokens earned by MOBILE Hotspots, and thereby the incentive to grow the MOBILE network.

On the other hand, the IOT subDAO would benefit if the MOBILE Hotspots, including those which are already online, pay appropriate onboarding fees for the privilege of joining the Helium DAO, rather than being counted despite not paying any fee, as is the case under the current implementation. The HNT burn from their fees will contribute additional value to the entire HNT/DNT ecosystem, including the IOT subDAO.

As the Helium DAO grows, new devices may be introduced that participate in multiple current and future subDAOs at once. Both the IOT and the MOBILE subDAOs will benefit if appropriate onboarding fees are paid to all subDAOs involved.

Rendered View

https://github.com/helium/HIP/blob/main/0078-mobile-subdao-onboarding-fees.md

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HIP 78 was withdrawn by the author and replaced with HIP 80
https://github.com/helium/HIP/blob/main/0080-simplifying-dao-utility-score.md