HIP-28 Fee Collection

Hello, ONE community!

TLDR -
Harmony commits to utilizing the treasury for the Recovery One plan, rather than minting new tokens.
Continuing to support vital network services and partnerships is vital and will require new methods of funding.
This proposal is to collect and use network transaction fees to fund these necessary services and partners.
This change would require a hard fork, and there will be a vote.

Introduction
Blockchain and Web3 projects must adapt to current market conditions. This proposal is for the current burning mechanism of transaction fees to be shifted toward utilizing those fees to fund the blockchain’s required services/partners in order to continue development.

Background
Harmony relies on vital services and partners (such as server infrastructure, oracles, endpoints, multi-sig, etc.), without which it cannot continue to build and develop into the future. Given that Harmony has committed to not minting new tokens and to using the Harmony treasury to recover de-pegged asset value, a new and innovative way to procure funding for these services/partners is needed. An obvious source for this funding comes from transaction fees that users already are paying. Recovering the de-pegged asset value and continuing to move forward in development go hand and hand for the success of Harmony.

Mission
Any change to the coding on the chain requires a hard fork, which certainly applies to this situation. This proposal will remain on the Talk forum for 2 weeks for community engagement purposes and feedback. A poll will be attached to gauge sentiment, which is not to be considered as an official vote. After 2 weeks, a Snapshot vote will be posted, at which time validators will have a week to vote.

Blockers
Snapshot will need to be tested and brought up to speed if needed to ensure governance is possible. The move to the official Snapshot in the past caused issues.

Thank you for taking the time to read this proposal, and please provide any feedback you may have. The core team is aware of this thread, and I will be tagging a few of them to ensure they see this. @lij @Globey.one @sophoah

2 Likes

Please vote below on this proposal to use transaction fees in this manner.

  • Yes
  • No

0 voters

Idea is good.

But as i know, a hard fork requires maintenance in all the structures which harmony blokchain is already connected with. Like cointrackers, cex/dex exchanges, dApps etc. This could lead the team go under an extremely hard work.
I have not voted yet. Gonna wait until the last day to see if there are other opinions/information that i do not know :slight_smile:

Have a great weekend.

3 Likes

I’d use any means to help victims who have their assets frozen in the AAVE protocol. After victims are able to remove their assets and be back in control of their tokens, there could be ideas for the growth and improvements.

This thread seems to have fizzed out into nothing unfortunately. Hopefully we can revive it.
But I would like to shift the focus slightly.
I believe the proposal for collecting transaction fees in a multisig/DAO not exclusivity for the usecase of repegging, but overall for future development of the protocol of be a benefit overall.

Tokenomics:
For all the talks about arguing about deflationary or inflationary currency, a more important part is forgotten, stability. Harmony’s model of today resembles Ethereum’s model of inflationary, but be deflationary with high transaction volume. I would argue that this is not a good model.
A stable inflation of the 441 million tokens issued to staking, with no burning of transaction fees would create a more stable tokenomic model in my view.

Decentralization:
Harmony has stated that they want to decentralize the protocol over time, here is a great chance to start that process. Letting the future funds of the protocol being left over to a Treasury DAO controlled by the community. In which we the community could (over time) will gain more and more influence over the protocol treasury as the foundations treasury dries up. And eventually the cummunity would be funding the foundation if/as we see fit.

Here were just some short rambling hoping to start a discussion.

2 Likes

Let’s use it to unlock frozen assets from AAVE.