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HIP draft - Scaling the Network with Governance & Hedera #480

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1f9285f
Initial checkin of HIP LoRaWAN Committee
leogaggl Mar 9, 2022
3bf4526
inital check-in of detailed committee guidelines
leogaggl Mar 15, 2022
8d2e0d0
minor changes
leogaggl Mar 16, 2022
b4d1dbf
minor changes
leogaggl Mar 16, 2022
67ae91e
minor changes
leogaggl Mar 16, 2022
b4f39d9
incorporate early feedback
leogaggl Mar 16, 2022
053e932
incorporate early feedback
leogaggl Mar 16, 2022
f94813f
incorporate minor feedback
leogaggl Mar 17, 2022
4401336
incorporate early feedback
leogaggl Mar 17, 2022
40b9a2f
incorporate early feedback
leogaggl Mar 17, 2022
6d94a22
Gathered feedback #1 and my feedback on the HIP
jamesmeikle Mar 18, 2022
6a5230e
Merge pull request #1 from jamesmeikle/patch-1
leogaggl Mar 21, 2022
3d18508
Minor layout fix
leogaggl Mar 23, 2022
abc63a4
add LoRa Alliance Bylaws Reference
leogaggl Mar 24, 2022
7280dc7
Merge branch 'helium:main' into main
leogaggl Jul 17, 2022
cdfafbd
Merge branch 'helium:main' into main
leogaggl Jul 20, 2022
2544104
inital outline of LoRa Class-C HIP
leogaggl Jul 20, 2022
a94030e
Merge branch 'main' of github.com:leogaggl/HIP into main
leogaggl Jul 20, 2022
6f2aca7
Merge branch 'helium:main' into main
leogaggl Sep 5, 2022
b07c423
Merge branch 'helium:main' into main
leogaggl Sep 11, 2022
b90db8f
Delete Class-C HIP - no longer relevant due to HIP-70
leogaggl Sep 11, 2022
d186327
Merge branch 'helium:main' into main
leogaggl Sep 12, 2022
003dfba
checkin inital HIP-70 alternative proposal
leogaggl Sep 12, 2022
6c77f64
undo checkin inital HIP-70 alternative proposal
leogaggl Sep 12, 2022
fdfc416
checkin inital HIP-70 alternative proposal
leogaggl Sep 13, 2022
db143a6
minor feedback
leogaggl Sep 13, 2022
2e04798
minor feedback added
leogaggl Sep 13, 2022
551f9af
minor feedback added
leogaggl Sep 13, 2022
21cdfd4
added feedback co-authors
leogaggl Sep 13, 2022
08787b1
Update 0071-scaling-helium-transparently.md
smiffytech Sep 21, 2022
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Update 0071-scaling-helium-transparently.md
smiffytech Sep 21, 2022
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minor feedback added
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leogaggl committed Sep 13, 2022
commit 2e047988486c9f65ef5e22b8a48c7d7c8ac8f1b7
8 changes: 5 additions & 3 deletions 0071-scaling-helium-transparently.md
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This HIP which builds on the excellent work done by the creators of [HIP-70][HIP-70] is focussed on delivering important structual changes to the Helium network as proposed in HIP-70. However it aims to improve on some of the shortcomings such as further centralisation (rather than decentralisation) of network activities. It also aims to introduce more formal governance structures which have been absent from prior proposals and will allow more predictable operation which is critical for enterprise adoption of the utility scale network we are all aiming to build.

Another difference to the original Helium Scaling Proposal is the use of an enterprise distributed ledger technology (DLT) as an alternative example. **It is important to note that unlike the original HIP-70 this is more as an example how this technology can be used. This HIP proposes a formal evaluation and comparison phase (and some evaluation criteria) to ensure the best tool is eventually chosen** (see Governance section).

In this HIP, we propose an alternative architecture for the Helium network to use the Hedera network as a layer 1. The new architecture is built to meet the number of requirements that we believe are critical to the network’s success. Our new design goals include network scalability, strong network governance, transparency in data reporting and rewards distribution, and decentralization.

Another difference to the original Helium Scaling Proposal is the use of an enterprise distributed ledger technology (DLT) as an alternative example. **It is important to note that unlike the original HIP-70 this is more as an example how this technology can be used. This HIP proposes a formal evaluation and comparison phase (and some evaluation criteria) to ensure the best tool is eventually chosen**.
As per [HIP-70][HIP-70] we also acknowledge that this change removes the need for staked validators operating block production and challenge creation as they do today. However, we would expect (some) validators to be ideal candidates for operators of decentralised oracles.

We acknowledge that this change removes the need for staked validators operating block production and challenge creation as they do today. That said, we expect that HNT stakers will migrate their positions towards securing current and/or future subDAOs and participating in governance through the vote-escrow token based system proposed in [HIP-51][HIP-51]. Removal of the staked validator reward also returns the full 6.85% of HNT emissions back to the rewards pool, benefitting Hotspot owners on all subDAOs. In the first year alone, this is estimated to be over 2 million more HNT rewarded.
That said, we expect that HNT stakers will migrate their positions towards securing current and/or future subDAOs and participating in governance through the vote-escrow token based system proposed in [HIP-51][HIP-51]. Removal of the staked validator reward also returns the full 6.85% of HNT emissions back to the rewards pool, benefitting Hotspot owners on all subDAOs. In the first year alone, this is estimated to be over 2 million more HNT rewarded.

Similar to the [HIP-70][HIP-70] proposal these changes are complementary to the changes proposed in [HIP-51][HIP-51] and a necessary set of changes to more easily implement some of the redemption and governance mechanisms proposed in [HIP 51][hip 51], [HIP-52][HIP-52], and [HIP-53][HIP-53]. We also expect that more protocols will be attracted to participate in the Helium ecosystem because of the move to a more widely used Layer 1 blockchain.

Expand All @@ -40,7 +42,7 @@ In the last several months of the network, both have been challenging for networ

This HIP has a direct impact on all stakeholders on the network. We believe that overall, Hotspot owners and Users of the network will see more consistent and reliable data transfer as discussed above.

One set of stakeholders, namely validator stakers, staking pool operators, and validator-as-a-service providers, may be negatively impacted by this change but we believe these parties will continue to be able to participate in network activities. Stakers will be able to more actively participate in governance by staking their HNT into veHNT as described in [HIP-51][HIP-51] and earn subDAO tokens like IOT or MOBILE by assigning their veHNT to a network they “vote” for.
One set of stakeholders, namely validator stakers, staking pool operators, and validator-as-a-service providers, may be negatively impacted by this change but we believe these parties will continue to be able to participate in network activities. Stakers will be able to more actively participate in governance by staking their HNT into veHNT as described in [HIP-51][HIP-51] and earn subDAO tokens like IOT or MOBILE by assigning their veHNT to a network they “vote” for. As mentioned above and covered below we do believe there is a need for those skills to operate decentralised oracles.

# Detailed Explanation

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