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Hummingbot Governance Proposals (HGP)

Summary

Hummingbot Governance Proposals (HGP) allows HBOT token holders to decide how the HBOT community pool and other Foundation treasury assets are distributed and to adjust aspects of the Foundation governance system.

Voting requirements

Since this type of proposal has the biggest impact on Foundation and may allocates a significant portion of the HBOT treasury, it has the highest requirements for approval.

Proposal Type Hummingbot Governance Proposal
Snapshot https://snapshot.org/#/hbot.eth
Min HBOT Balance to create 50,000
Quorum Percentage 3% of HBOT circulating supply
Approval Threshold >50% of tokens approved
Vote Duration 14 days

Before creating a HGP

Governance Proposals vs Improvement Proposals

Governance Proposals (HGP) are designed to allocate HBOT budget toward broad themes that benefit the overall Hummingbot user base, enabling any developer to request grants for it afterwards, or community initiatives that enable diverse teams to apply. Unlike improvement proposals (HIP), developers cannot request HBOT in a HGP for exclusive work that prevents contribution by other community developers.

It is a good practice to discuss proposals with the community before opening it for voting. Proponents should create a thread in Commonwealth and share it in the #governance-chat channel in Discord to encourage ample discussion.

Format

To be considered valid, a HGP must contain the following information:

  • Title: Title should start with HGP followed by its count along with the Category code
  • Category: Category name
  • Summary: A succinct summary of the proposal
  • Description: Detailed explanation, including how it will be executed and how progress will be tracked
  • Milestones: Key milestones that may be used to track the progress toward implementation
  • Related Discussions (optional): Links to discussion topics that were created on the Hummingbot Governance Forum related to the proposal, if any
  • Treasury Allocation: If the proposal includes the use of the Hummingbot Foundation treasury, it must contain a Budget (number of HBOT tokens requested) and Distribution (how the budget will be used, distribution timeframe, and the conditions for distribution)

Note that HGPs only have For, Against, and Abstain voting options, so proposal creators should write proposals that enable them to be voted on in this manner.

Categories

Proposals related to the topics below need to be approved via a HGP before they can be executed by the Hummingbot Foundation team. Proposals that do not fit in any of these categories should be created through a Hummingbot Improvement Proposal (HIP) and will be deleted by the Hummingbot Foundation team if they are created as a HGP.

Liquidity Distributions (LD)

Since Hummingbot is a decentralized community of liquidity providers that aims to democratize market making, HBOT tokens should be distributed to people who use the Hummingbot software to provide liquidity.

In order to maximize the probability that HBOT tokens are distributed to people using Hummingbot, Liquidity Distribution proposals should distribute tokens to users who:

  • Generate verified trading activity via Hummingbot exchange connectors;
  • Provide liquidity to HBOT trading pairs, and/or;
  • Participate on decentralized market making platforms like Miner where the preponderance of users use Hummingbot.

All proposals in this category should contain detailed information about the platform and its trading metrics, along with an explanation for how the proposal will maximize HBOT distribution to Hummingbot users.

Dev Grant Budget (DG)

A Dev Grant Budget enable HBOT token holders to set aside HBOT token to fund development work performed by community contributors that that benefit the Hummingbot ecosystem. All such work should be committed to the Hummingbot Github code repository or other repositories in the Hummingbot Foundation Github organization.

Each Dev Grant Budget should define the total number of HBOT reserved, distribution timeframe, and the specific type of code contribution that can seek a share of the budget.

After approval, a Dev Grant Budget will be distributed in the following manner:

  1. A Developer looking to receive a share of the Dev Grant Budget should create a [Hummingbot Improvement Proposal (HIP)]/governance/proposals/hip/) that describes the scope of the intended work and share of budget sought.
  2. After the HIP is approved, the developer should create a Pull Request Proposal (PRP) referencing a Github pull containing the work.
  3. After the PRP is approved, which means the work will be merged into the codebase, the requested HBOT share of Dev Grant Budget is paid to the developer.

If the PRP is rejected, the developer can resubmit the proposal at any moment, so long as the Dev Grant Budget is still available and active.

Initiative Budget (IB)

This category covers use of the Foundation treasury for initiatives that improve the Hummingbot ecosystem and positively impact the community, such as:

  • Community review incentives
  • Hackathons
  • Content creation contests
  • Team projects

For approved Community Initiative with roles to be filled by community members, the first post-approval step will be an announcement thread in Commonwealth, where community members can present their qualifications and apply for the roles.

All proposals in this category should contain clear goals, define expected impact on the Hummingbot community, and outline the metrics that the community should use to gauge whether the initiative is successful.

Governance Changes (GC)

This category covers all changes related to the Hummingbot Foundation governance process permissible for HBOT token holders to to adjust under Foundation bylaws.

All proposals in this category should contain an explicit description of what to change in the governance process, along with a clear explanation for why the change is needed.


Last update: 2022-03-02
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