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HIP 51 outlines the introduction of Decentralized Autonomous Organizations (DAOs) within the Helium network to manage and expand various sub-networks, such as IoT and 5G. This proposal introduces a governance model for the network and splits the economic and decision-making responsibilities into different subDAOs. Each subDAO is tasked with overseeing specific network segments, like IoT or Mobile, while being governed by stakeholders who can participate through tokenized mechanisms.
Key components of HIP 51 include:
SubDAOs and Utility Scores: SubDAOs operate semi-autonomously, governed by their participants. Utility Scores are used to determine how Helium Network Tokens (HNT) emissions are distributed among subDAOs based on factors like device activity and data transfer, incentivizing meaningful participation.
Emission Framework: HNT emissions are divided among the network participants, including subDAOs, hotspot operators, service providers, and veHNT stakers. These emissions are carefully structured to support network growth while ensuring fair distribution of rewards.
Governance via veHNT: Participants can lock HNT tokens to obtain veHNT, which grants voting rights in DAO governance. This encourages long-term commitment and alignment with the network’s goals.
Economic Flexibility: HIP 51 introduces mechanisms for adjusting token emissions and subDAO allocations to adapt to network growth and market conditions. This ensures that the network remains sustainable and competitive.
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HIP/0051-helium-dao.md at main · helium/HIP
This proposal outlines economic and technical constructions with the aim of scaling the Helium Network to support new users, devices, and types of Decentralized Network Protocols.
We propose that each communications network built on top of the Helium Network (LoRaWAN, WiFi, 5G, CDN, VPN — referred to as Decentralized Network Protocols or DNPs) has its own subDAO with its own token (referred to as Decentralized Network Tokens or DNTs). The key specifications of the DNP such as Proof-of-Coverage rules, mining rewards, and Data Transfer pricing are governed by each DNP subDAO.
The aim is to create an economy such that the underlying HNT-Data Credit burn-and-mint equilibrium continues to power the Helium Flywheel, while Proof-of-Coverage rules and earnings are dictated by the corresponding subDAO.
The technical model requires that the entire Helium Network (tokens, Hotspots, emissions rules, governance, etc.) lives at some proposed base layer blockchain (L1). All accounts and transaction activity happens at this L1. The decision on which L1 to use will be based on the technical and economical evaluation of the requirements of this proposal.
All subDAOs must operate Oracles for their networks. Each subDAO Oracle runs software to calculate DNP specific items (e.g., all the Proof-of-Coverage code that exists on the current LoRaWAN network to determine Hotspot rewards) and the subDAO Oracles who have staked DNTs come to consensus on these calculations and submit them to the Helium Network.
For the Helium Network to grow to global scale in number of active devices and users it is necessary to develop economic and technical primitives that will support that scale across various wireless networking technologies.
HIP-27: CBRS 5G Support provides a broad discussion of 5G DNP specific Data Credits mechanisms, and HIP-37: Omni-Protocol PoCproposes an incentive model as well as Proof-of-Coverage rules for the 5G Network. This is a three-part proposal that builds on such existing work with two primary aims:
The technical and economic design decisions of the Helium Network historically have been made around the first LoRaWAN Decentralized Network Protocol. In order to support new networks and devices, there are two core problems to be addressed: blockchain scalability and DNP specific incentive alignment.