HGP-3 [GC] Change Minimum Quorum for approval to % of Circulating Supply

Author: PHBR0 x58B

Original Post Date: 1 Feb 2022

Snapshot Proposal Link

Category

Governance Process Change

Summary

Proposing to change the Minimum Quorum required for proposals to approved to be a % of the current circulating supply, instead of % of the total supply. This is motivated by the fact that only 4% of the total token supply is currently circulating.

Details

Motivation

The Hummingbot Foundation established that, for a proposal to be approved, a minimum quorum (amount of HBOT tokens used to vote) is needed, depending on the type of proposal. (Check governance proposals page for more details about the current parameters). Initially, this minimum quorum established to be a percentage of the total supply of HBOT tokens (1,000,000,000 HBOT).

As described in the HBOT announcement, 40 million tokens (4%) were distributed to historical users and developers in the Retroactive Airdrop and 360 million tokens (36%) will be distributed to the community in years 1-4, while the remaining 640 million tokens for CoinAlpha investors and team members, along with Foundation team members, are locked up until the end of year 1.

Since only 4% of the total supply is currently in circulation with another 9% to be distributed in year 1, the current minimum quorum parameter might not be reached on the proposals that will be created by the community:

Current Proposal Minimum Quorum for Approval

Proposed Change

We propose to change the Quorum Percentage for each proposal type above to circulating supply:

  • Pull Request (PRP): 0.1% of circulating supply (currently 40,000 HBOT)
  • Improvement (HIP): 3% of circulating supply (currently 1,200,000 HBOT)
  • Governance (HGP): 10% of circulating supply (currently 4,000,000 HBOT)

Reporting

As more HBOT tokens are distributed among the community, the circulating supply will increase. The Foundation will update a Circulating Supply field on the HBOT page at the beginning of every month, and will then update the Minimum HBOT Amount Needed on each Snapshot page afterwards: