diff --git a/docs/governance/governance-faq.mdx b/docs/governance/governance-faq.mdx index b3ccd14ef..7418fbae1 100644 --- a/docs/governance/governance-faq.mdx +++ b/docs/governance/governance-faq.mdx @@ -8,35 +8,36 @@ image: https://docs.helium.com/img/link-image.png slug: /governance/faq --- -import useBaseUrl from '@docusaurus/useBaseUrl' -import LegacyContentBanner from '@site/src/theme/LegacyContentBanner' - - - ## What Is veHNT? -veHNT represents the voting power of the Helium Network. +veHNT represents the voting power in the Helium Network. -In the Helium ecosystem, HNT holders can receive veHNT by locking their HNT on-chain for a specified -period in exchange for voting rights and voting power in the HeliumDAO as defined in -[HIP-51](https://github.com/helium/HIP/issues/336). +In the Helium ecosystem, HNT holders can establish a veHNT position by locking their HNT on-chain for a specified +period in exchange for voting rights and voting power in all areas of the Helium Network as defined +in [HIP-51](https://github.com/helium/HIP/issues/336). -Additionally, this provides other benefits, such as earning MOBILE or IOT tokens, if the holder -delegates their veHNT to those subnetworks, respectively. After the lock-up period ends, the same -amount of HNT is released back to the owner's wallet and is now transferable, if needed. +Additionally, this provides other benefits such as earning HNT tokens if the holder delegates +their veHNT to those subnetworks and regularly votes in Network proposals. +After the lock-up period ends, the same amount of HNT is released back to the owner's wallet and is +transferable or tradeable as before. -## What Are The Benefits of Staking HNT after the subnetworks launch? +## What are the requirements for earning HNT tokens with locked up HNT -Now the Solana migration has been completed, stakers can use their staked veHNT to vote on proposals -in the HeliumDAO and help the DAO make collective decisions, influencing the future of the Network. +People who lock up their HNT can use this staked veHNT to vote on proposals in the Helium Network and +help the Network make collective decisions influencing the future of the Network. It is a requirement +that owners of locked up tokens vote for at least 2 of the most recent 4 veHNT votes or lose staking +income, or alternatively they can assign a proxy to vote on their behalf. -Stakers will additionally be able to delegate veHNT to a subnetwork for token rewards. Delegating -veHNT to a subnetwork will count towards the DAO Utility Score, the `V` value referenced in -[HIP-51](https://github.com/helium/HIP/blob/main/0051-helium-dao.md#omni-protocol-poc-incentive-model). +Additionally, people who lock up their HNT are required to delegate their veHNT to a subnetwork to +receive HNT token rewards. Delegating veHNT to a subnetwork is now the sole variable affecting the Network +Utility Score that decides the split of HNT that gets distributed to the IoT and Mobile token emissions +recipients as described in [HIP 141.](https://github.com/helium/HIP/blob/main/0141-single-token-governance-and-release-proposals.md) +Delegation of veHNT to a subnetwork earns the same for the staker no matter which subtoken they delegate +towards. -## Where Does My HNT Go if I Stake veHNT? +## Where does my HNT Go if I Stake veHNT? -If you lock up your HNT for veHNT, your HNT will become veHNT and remain entirely in your wallet's +If you lock up your HNT, you will see a veHNT value and it will remain entirely in your wallet's custody. veHNT ownership is represented by a non-transferable Solana NFT held in your wallet. At the end of the lock-up period, any received tokens need to be claimed, the position undelegated, and then after a close position action is taken you will receive HNT back to your wallet 1:1 for the HNT @@ -54,8 +55,8 @@ with shorter-term interests in the governance of the Network. ## What is Voting Power? -Voting power is the weight of your vote towards decisions made by the DAO or subnetwork. The more -veHNT you have, the more weight your vote has. +Voting power is the weight of your vote towards decisions made by the Network. The more veHNT you +have, the more weight your vote has. You can only increase your voting power by staking more HNT or extending an existing veHNT lock-up period for longer. @@ -64,14 +65,15 @@ period for longer. [HIP-51](https://github.com/helium/HIP/blob/main/0051-helium-dao.md#omni-protocol-poc-incentive-model) defines that all subnetworks return a maximum of 6% of their earnings to their veHNT delegators and -is designed to be an equal maximum reward level across all subnetworks so that no subnetwork can buy -their way to a higher DAO Utility score. +was designed to be an equal maximum reward level across all subnetworks so that no subnetwork can buy +their way to a higher Network Utility score. -Returns can be lower than 6% in subnetwork tokens if the subnetwork votes to provide a lower token -return in return for other benefits or similar. +[HIP-141](https://github.com/helium/HIP/blob/main/0141-single-token-governance-and-release-proposals.md) updated the operation of this score. -As more veHNT is delegated to a subnetwork, the DAO Utility Score improves, among other factors -defined in HIP-51, which drives greater earnings of HNT for the subnetwork. +As more veHNT is delegated to a subnetwork, the Network Utility Score improves, as defined in HIP-141, +which drives greater earnings of HNT for the subnetwork participants. But the income from delegation +of your veHNT now remains dependant on the total emissions and delegations and is no longer dependant +on which specific network you are delegated towards. As more veHNT holders delegate to a particular subnetwork, individual holder earnings will reduce the amount of net subnetwork token earnings as delegators share the 6% subnetwork token emissions. @@ -85,17 +87,13 @@ veHNT delegated, the more veHNT holders the 6% will have to be shared between. Anyone can stake any amount of HNT and lock it up for 1 day to 1461 days ( 48 months). You choose your unstaking date at the time of lock-up or decide to keep it on a rolling lock-up period, called "constant lock-up" before initiating the start or the veHNT decay process. The HNT staked is -exchanged for veHNT, which provides two benefits: - -- Voting in the Helium DAO on new subnetwork proposals and Participating in the Governance. -- Receiving an income if the veHNT is delegated to a subnetwork. +exchanged for veHNT, which currently provides two benefits: -Anyone can delegate veHNT to a subnetwork, it's one component of a subnetwork's Utility Score. -Delegating veHNT to a subnetwork allows the holder to earn subnetwork token rewards proportionally -based on the subnetworks rules. +- Voting in the Helium Network on new proposals and Participating in the Governance. +- Receiving an income if the veHNT is delegated to a subnetwork and voter participation. -> For example: If I delegate some veHNT to MOBILE subnetwork, I proportionally earn MOBILE rewards -> allocated to veHNT stakers. +Anyone can delegate veHNT to a subnetwork, it's now the only component of a subnetwork's Utility +Score. The Helium Network encourages your long-term participation in voting and governance. Those who stake HNT for 1 day will exchange 1:0.06844627 HNT to veHNT. Those that stake veHNT for 48 months will @@ -103,22 +101,19 @@ receive an exchange of 1:100 HNT to veHNT. Any period in between will be treated from 0.0684462 to 100. > For example, I choose to lock up 10 HNT for six months. I receive 125 veHNT. If I decide to -> unstake immediately, after six months, my veHNT decays to 0 until my 10 HNT unlocks and is +> unstake immediately, after six months, my veHNT decays to 0 until my 10 HNT is unlocked and is > available to me for use in my wallet. A combination of an amount of HNT locked up for a specified duration and the assigned veHNT is called a "Position". It is possible to own multiple Positions in your wallet. Actions taken on a Position - like e.g. on the lock-up duration, delegating the veHNT, voting with the veHNT - are all -or nothing options. If a Position owner would like to receive rewards from two subnetworks, then the -HNT-veHNT Position would need to be split into two Positions - by transferring some HNT to a second -position within the same wallet. Then each position could delegate to a different subnetwork. -Similarly, wishing to extend the lock-up duration on parts of a Position requires a similar split by -transfer. +or nothing options. Each position could delegate to a different subnetwork. Similarly, wishing to +extend the lock-up duration on parts of a Position requires a similar split by transfer. ## How Can I Obtain veHNT? -Staking HNT for veHNT will be done on [Realms](https://realms.heliumvote.com/dao/hnt) See the -[Staking veHNT on Realms](/governance/staking-with-helium-vote) documentation +Locking up HNT for veHNT can be performed in the Helium Wallet App under the Governance Icon. +Or at https://heliumvote.com/hnt and connecting your wallet. ## Is There a Staking "Genesis" Period? @@ -141,22 +136,14 @@ For example: ## Will I Earn HNT by Staking For veHNT? -**No.** HNT staked to veHNT will not earn more HNT, it will only return what they staked at the end -of their selected lock-up period. - -However, when you stake HNT into veHNT, you can delegate your veHNT into one or more subnetworks -(such as IOT or MOBILE), and the subnetworks allocate up to 6% of their token emissions to the veHNT -owners delegating to that subnetwork. - -> For example: When you delegate your veHNT to the IOT subnetwork, you receive IOT every epoch that -> is claimable in your Helium Wallet. If you choose, this IOT can then be burned at the IOT -> subnetwork treasury for HNT, or you may hold your IOT tokens, or stake them into veIOT. +**Yes.** Since the implementation of HIP-141 rewards are now received in HNT and no longer in IOT or +MOBILE tokens. ## How much veHNT will I get for each lock-up period? The table below shows the approximate HNT to veHNT multiplier for example months of staking -This value is multiplied by 3x during the first 10 days after the Solana transition and this +This value was multiplied by 3x during the first 10 days after the Solana transition and this multiplier lasts as long as the last lock-up period selected in the first 10 days after the Solana migration. @@ -179,19 +166,18 @@ migration. ## Do I Have to Delegate My veHNT to a subnetwork? No. You can hold your veHNT as is or delegate to a subnetwork at any time. +But you will NOT receive HNT for locking your position if you do not delegate and vote. :::note -Changing delegation is allowed, but any delegation changes within a Solana Epoch will void any -delegation rewards within that Epoch. A Solana Epoch is 24 hours long and starts and ends at -00:00:00 UTC time. - +Changing delegation is allowed, but you must be delegated at the end of an Epoch to earn +rewards for that Epoch. If you undelegate ensure you redelegate to continue earning rewards. ::: ## How Granular Is The veHNT Linear Decrease? -The veHNT decay countdown starts when initiated from the Wallet app/Realms, either immediately in -"decay" mode or after a "constant lockup" is unlocked and cooldown started. +The veHNT decay countdown starts when initiated from the Wallet app/Helium Vote, either +immediately in "decay" mode or after a "constant lockup" is unlocked and cooldown started. veHNT quantity decay is granulated per second even though the Epoch period is 24 hours. @@ -210,75 +196,73 @@ remaining 48 months until it hits zero. Yes. You can increase your lock-up period by extending it to a maximum of 48 months at any time, and the increase activates at the start of the next epoch. If the veHNT is delegated you must -undelegate, change the period, redelegate, and lose delegation rewards within that 24 hour Epoch. If -those three actions take longer than an epoch or are split over two epochs then delegation rewards -are lost for two Epochs. +undelegate, change the period, redelegate. This operation no longer loses a days rewards if the +undelegate/redelegate operation is performed within the same epoch period. ## Can I Decrease My Staking Period For Fast Access to My HNT and Take a Penalty? No. You define your lock-up period at the time of staking and cannot unstake or decrease the lock-up period for any reason. +## What do I need to do to close a decayed veHNT position? + +To completely close a position the following is required: + +- Claim all rewards - you may need to keep claiming until the claim button is disabled. +- Undelegate your position +- Close the position in the right epoch - You may need to wait until after the epoch has ended that the position closed in. +- Ensure there is a HNT account in your wallet - it is possible that the HNT account in the wallet has +been deleted. It can be recreated by transfering HNT into the wallet or swapping other tokens for any +amount of HNT. + ## Can I Automate Re-Staking? Yes, a constant rolling lock-up period is available called Constant Lock-up. The decay countdown start point will need positive action to start the lock-up cooldown period. -> Staking 10 HNT for 4 years will get approx 1000 veHNT and this will be a rolling 4 year period and -> will remain at 1000 veHNT until the decay countdown is activated and this will then decrease -> linearly over 4 years to 0 veHNT and the HNT is returned. +> Staking 10 HNT for 4 years will get approx 1000 veHNT (10x100) and this will be a rolling 4 year +> period and will remain at 1000 veHNT until the decay countdown is activated and this will then +> decrease linearly over 4 years to 0 veHNT and then the HNT can be claimed back. ## Can I Transfer my veHNT or any of the veDNTs to Someone Else? No. veHNT and the like are fully non-transferable and represent your voting power in the Network. It is not a token. It is represented in the wallet by a non-transferable NFT. -## How Do I Buy veHNT or Any of the veDNTs? +## How Do I Buy veHNT -You cannot buy veHNT, veIOT, or veMOBILE. They are not tradable tokens. veHNT can only be obtained -by staking HNT with a lock-up period. Likewise, for veIOT or veMOBILE. +You cannot buy veHNT or move it between wallets. They are not tradable tokens. veHNT can only be obtained +by staking HNT with a lock-up period. veHNT and veDNTs have no price in the larger crypto markets. -## What Is the DAO Utility Score? +## What Is the Network Utility Score? -The DAO Utility score is described in [HIP-51](https://github.com/helium/HIP/issues/336) and was updated with [HIP-88](https://github.com/helium/HIP/issues/707) +The Network Utility score was described in [HIP-51](https://github.com/helium/HIP/issues/336) as the DAO Utility score and was updated with [HIP-88](https://github.com/helium/HIP/issues/707), and was then reduced in complexity with [HIP 141](https://github.com/helium/HIP/blob/main/0141-single-token-governance-and-release-proposals.md#migrating-to-a-protocol-score-based-only-on-delegation). -Every epoch, a fixed amount of HNT is allocated to all subnetworks. Each subnetwork receives a share -of this fixed amount. The sizes of the shares are determined by the Utility Scores of each -subnetwork of Helium. +Every epoch, a specific amount of HNT is allocated to all subnetworks. Each subnetwork receives a share +of this fixed amount. The sizes of the shares are determined by the Utility Scores (also known as the +Protocol score) of each subnetwork of Helium. -The higher the Utility Score of a subnetwork is in relation to the Utility Scores of all other -subnetworks combined, the higher its share of the total HNT allocated to all subnetworks. As the DAO -Utility Scores are calculated each epoch anew, the share of HNT a subnetwork receives may change -from epoch to epoch. +The new Protocol Score is derived from the share of veHNT delegated to each subnetwork (formerly +represented by the V component of the Utility Score), as a percentage of total delegated veHNT. +It determines the subnetwork’s percentage of total HNT emissions. -Delegating veHNT to IOT or MOBILE increases the `V` value in the -[HIP-51 DAO Utility Score](https://github.com/helium/HIP/blob/main/0051-helium-dao.md#omni-protocol-poc-incentive-model) -calculation. +All locked veHNT positions will receive a share in the 6% of HNT emissions allocated to locked +HNT holders based on the proportion of veHNT they have to the total of veHNT held by everyone. -The two other ways the DAO Utility score can be increased are: +They are calculated daily and assigned to the lock-up position per epoch - daily. But can be claimed +to the wallet as convenient. -1. Increasing the amount of data usage on the subnetwork, i.e., the Data Credits burned. This - increases the `D` value in the Utility Score. -2. Increasing the Data Credits used to onboard the number of Hotspots for that subnetwork. This - increases the `A` value in the Utility Score. - -## Will My Subnetwork Earnings Remain The Same Over The Time Period Lock-Up? +They may decrease when: -No, they are calculated and paid to the lock-up position per epoch - daily. They may increase when: +- HNT emissions are halved at the regular 2 year period (Next is 1st August 2025). +- More HNT is locked up or HNT that is locked up is locked for longer increasing the total veHNT. +- The daily Net Emissions total of HNT is decreasing. -- More veHNT is delegated in the subnetwork you delegated to - your treasury gets more HNT. -- More Hotspot onboarding fees are burned in the subnetwork you delegated to. -- More data is transferred and burned in the subnetwork you delegated to. +They may increase when: -They may decrease when: +- Less HNT is locked up or HNT that is locked up is decaying decreasing the total veHNT. +- The daily Net Emissions total of HNT is increasing due to large HNT burns for data use. -- More veHNT is delegated in the subnetwork you delegated to - your share is reduced -- More veHNT is delegated to other subnetworks - other treasuries get more HNT. -- Your delegated veHNT decays over time after you entered the cooldown. -- More Hotspots are online in other subnetworks with a non-zero onboarding fee. -- More data is transferred and burned in other subnetworks. -Thus it can be observed that delegating more or all of your veHNT to a specific subnetwork has the -opportunity to both increase or decrease your subnetwork earnings from delegation.