This topic provides an general overview of the changes proposed for Epoch 2 of Hummingbot Foundation, which will last from August 1, 2022 through December 31, 2022.
Since Hummingbot Foundation is an experiment in creating a self-sustainable open source ecosystem steered by HBOT token holders, we plan to iterate and improve on the governance system and corresponding HBOT distribution process over fixed periods of time called epochs.
Each Epoch is a fixed, 5-month period with specific HBOT distribution-related goals across various categories. Epochs are basically long agile sprints, after which the Foundation will conduct an open retrospective and strengthen internal processes for the next Epoch.
While almost all 30 million tokens were allocated, effectiveness of the allocations varied greatly from initiative to initiative, based on community feedback. In addition, a significant portion of the Dev Grant Budgets were not claimed by the end of the Epoch 1.
In light of this experience, the Foundation proposes to take a more cautious and conservative approach toward HBOT distributions than originally envisioned. Rather than 60 million HBOT tokens, we proposed a Epoch 2 distribution goal of 30 million HBOT tokens (equivalent to Epoch 1).
Based on what worked and didn’t work in Epoch 1, we proposed the following allocations by category:
Proposed allocation: 15 million HBOT tokens
During Epoch 1, developer grants incentivized community developers to contribute key components such as new DEX connectors, new strategies, and many improvements. Therefore, we propose to increase the HBOT allocation to 15 million for Epoch 2.
Proposed allocation: 10 million HBOT tokens
Previously named Initiative Budget, this category’s effectiveness varied from initiative to initiative. While paying community members in Tech Review DAO to review incoming pull requests provided a critically important and vital function, other initiatives such as ETHPortland hackathon and Developer Airdrop did not drive meaningful contributions to the Hummingbot codebase. In addition, we believe that this category definition lacked sufficient specificity.
Therefore, we propose to rename this category Community Work and focus its scope on initiative that compensate community members for performing needed functions needed to maintain an open source software project and support its user base, such as:
- Finding bugs and creating Github issues for them
- Reviewing Github pull requests and bug fixes
- Providing technical support to users on Discord
- Writing documentation, guides, and other content that explain how to use Hummingbot
Enabling the community to perform more functions is a key plank of the Foundation’s goal to decentralized, open source ecosystem. Therefore, we propose to increase this category’s budget from 5 million HBOT to 10 million HBOT for Epoch 2.
Proposed allocation: 5 million HBOT tokens
Since Hummingbot is a tool that is primarily used to provide liquidity across different exchanges, ensuring sufficient liquidity for the HBOT token is a key plank to promoting its usage by the community. Similar to Epoch 1, we propose that this category be allocated to:
- Users who generate verified trading activity and liquidity via Hummingbot or participate on decentralized market making platforms like Miner where the preponderance of users use Hummingbot
- Protocols, exchanges, and other platforms that enable liquidity for HBOT holders
Since only a subset of the 15 million HBOT budget was used in Epoch 1, we propose to reduce the Epoch 2 budget to 10 million HBOT.
In the two threads below, we outline proposed changes to the Hummingbot Foundation governance system. We believe these changes will make the process more open, transparent, decentralized, and community-oriented.
Since Hummingbot Foundation only employs 11 full-time staff, the best way to serve the community is to focus on a limited number of high-impact, well-executed initiatives. For Epoch 2, we believe that the following two initiatives will deliver the most value to the community.
This initiative enables the community to select and feature a certain subset of exchanges in the Hummingbot codebase with which the Foundation has fee share partnerships. By focusing efforts on technical improvements for these exchanges and promoting their usage, we believe that it would lead to increased fees shared from these exchanges, enabling more resources to be allocated by HBOT holders. See the thread below for more details.
Increasing the developer base and teaching users how to leverage the full power of the Hummingbot codebase with custom trading bots helps fulfill the Foundation’s long-term mission to open source high frequency trading.
Therefore, we will start a free developer bootcamp (or BotCamp ) that teaches anyone to build custom trading bots using simple Python code. This initiative was approved in this Snapshot proposal and commences on September 1, 2022.
Register for BotCamp and see the thread below for more details.
Below is the timeline for circulating these proposed changes to the broader community and seeking approval via HGPs.
- Community discussion and feedback: July 13 - July 24
- Creation of HGP for Epoch 2 budget and governance changes: July 24
- Creation of HGP for Exchange Certification: July 24
- Voting: July 24 - July 31
- Start implementation of Epoch 2 governance process (if approved): August 1
- Start Exchange Certification (if approved): v1.7.0 release (ETA August 31)
- Start Hummingbot BotCamp: September 1