Name: Determining which darknodes will be protected from the increased bond size
Author(s): @shiny, @PappyShappy, @Thomm
Category: Governance, funding
Status : Proposed
Scope: Decide on the airdrop to darknodes, which was included in RIP-000-018 “Ren 2.0 funding and Ren Foundation” and determine precisely which darknodes, if any, will receive it.
We must officially determine which darknodes will receive protection from dilution as proposed in RIP-000-018. A clear difference of opinion has been expressed within the community about the way forward: if darknodes should be protected from dilution in the first place, and if so who will be eligible? General consensus has been reached in RFC-000-051 around the voting options which will be presented in this RIP.
RIP-000-018 was created to decide if and how many new Ren tokens would be minted to fund Ren 2.0. The proposal stated the following: “To maintain the 10,000 darknode limit, the darknode bond would need to be increased in line with how much REN is minted, and a portion of the minted REN would then go to current registered darknodes to allow those bonds to be carried over to the Ren 2.0 network.”
Since this RIP was passed, we have had a significant amount of uncertainty over when 2.0 will launch and whether or not darknodes need to remain registered to receive the allowance. There have also been both current and previous DNO expressing frustration over the addition of this detail within the RIP with little previous discussion and no alternative options to vote. Some DN have deregistered, some have registered since the RIP was passed, many have asked what to do.
This proposal is intended to have current registered DN decide exactly which nodes will receive the allowance, if any.
A large amount of discussion has been had as part of RFC-000-051, where a general consensus has been established around the following three voting options:
- Darknode bond increases to 118K. Only darknodes registered at the vote of RIP-000-018, and are registered prior to the activation of 2.0 (either continually registered or de-registered and re-registered), will receive the 18K airdrop, which will be subject to a 26 epoch (approx. 2 year) vesting period.
- Darknode bond increases to 118K. Only darknodes registered at or prior to the vote of RIP-000-018, and are registered prior to the activation of 2.0 (either continually registered or de-registered and re-registered), will receive the 18K airdrop, which will be subject to a 26 epoch vesting period. In addition, the first 200 darknodes registered prior to the activation of 2.0, but not registered at or prior to the vote of RIP-000-018 will also receive the airdrop, which is subject to a 26 epoch vesting period.
- Darknode bond remains 100K and max (non-treasury) nodes of 10,000 is coded in, no airdrop will need to be provided as compensation for higher bond requirement.
It is out of scope of this RIP to determine what will happen with the tokens that have been earmarked for darknode compensation under RIP-000-018. If option 3 wins, a separate vote would need to be held to decide if they will be burned, stay with the Foundation, or something else.
The vesting period will be all or nothing. Any airdropped tokens will return to the treasury if a darknode deregisters prior to the end of the vesting period, but earnings while the darknode is active will not be affected.
Option 1 is intended to represent the original context of RIP-000-018, which includes the recommendation “that the Foundation imposes lockup conditions on all allocations, whether to darknodes, investors, or the development team”.
Option 2 is consistent with option 1, except that it recognizes that there was a lot of uncertainty leading up to the vote, and darknodes that deregistered after the FTX collapse should not be penalized. In addition, adding a limited number of other darknodes that could get the airdrop insures that all those that want to continue supporting the project will not be penalized while preserving a reasonable hard cap on total airdropped tokens.
Option 3 prioritizes simplicity by not changing bonding requirements and providing no airdrop. It allows any current and future darknode operator to keep the current bonding and maximum cap and it preserves the entire 180M new REN for funding.
While there has been discussion of having different vesting periods depending on whether a darknode was part of the vote, or depending on how long they have been active, this vote is about the future of the project, not the past, so all airdropped tokens will have the same vesting period. Rewarding and incentivizing long term support of the network are better suited as part of managing community funds or other similar means.
Other related issues were discussed in various threads for this proposal, e.g., using REN as Gas and how best to insure future funding, but they are outside the scope of this RIP and will need a separate RFC/RIP process.
The vote will happen using Ranked Choice voting. This will prevent the vote to split between different options, the vote with the highest weight at the end of the voting period will win.
- In three days the vote will be posted on Snapshot
- Voting will be live for 7 days
- We will work with the Foundation to have the winning vote implemented. However, the Foundation, as fiduciary of the minted tokens under RIP-000-018, has final authority over the tokens (even under terms of RIP-000-018).
- After the vote concludes, we will work with Admin to make an announcement of the results and any actions that should be taken by operators.