HIP 70: Updates (#478)

0070-scaling-helium.md

@@ -143,19 +143,27 @@ With the move to Solana, we propose that the Consensus and Challenge Constructio
 
 The Helium Validator community is robust. At the time of writing, almost 38% of all HNT is staked in Validators. And the over 3,700 validator nodes are supported by a deep ecosystem of custodial (pooled) and non-custodial (dedicated) hosting providers. Though the transition to Solana would remove the need for staked HNT as we know it today, we believe the proposed subDAO structure allows for current HNT validators to redeploy their HNT and resources in ways that will earn comparable yield while playing a similarly important role in the growth of the network, with this role moving from mining blocks to subDAO governance. 
 
-In order to prepare for this change, however, we also propose a few necessary steps to enable this transition:
+### Reduce the cooldown period of Staked Validators
 
-**Convert all Staked HNT to veHNT**
+In order to prepare for this change, we propose, at the time of HIP approval, that the cooldown for staked HNT in Validators (`stake_withdrawal_cooldown`, as defined by [HIP 25][HIP 25]) immediately be reduced on the Helium blockchain to 125,000 blocks (currently set at 250,000). This would effectively reduce the cooldown period to less than 3 months. Any existing staked HNT holder or mining pool operator can release their stake if they choose to do so. Note that this is a one time adjustment and does not affect the minimum veHNT lockup of 6 months as defined in [HIP 51][HIP 51]. Our goal for completing this migration is the end of this year (2022) at the earliest so this should provide sufficient time for current Validators to unstake before this deadline.
 
-All staked HNT at the time of the transition be automatically converted to veHNT with a minimum (as defined by [HIP 51][HIP 51]) six month lockup. This enables all staked HNT holders to continue to participate in the ecosystem by assigning their veHNT to a subDAO (IOT or MOBILE) in order to influence the DAO’s Utility Score, participate in new Subnetwork Proposals, or participate in overall governance of the Helium Network.
+At the time of transition a snapshot will be taken of the Helium blockchain state in order to import account balances to the new L1. For any stake that has cooled down at least 125,000 blocks (as adjusted above), the full stake will be released back to the account owner.
 
-According to [HIP 52][HIP 52] and [HIP 53][HIP 53] veHNT stakers will earn both IOT and MOBILE tokens, respectively, by staking their veHNT in support of these subDAOs and participating in their governance. The IOT subDAO sets aside 6% of all emissions as does the MOBILE subDAO. A further elaboration of veHNT is also available in [HIP 51][HIP 51].
+Any remaining staked HNT will be immediately converted to veHNT with the minimum lockup period. This enables all staked HNT holders to continue to participate in the ecosystem by assigning their veHNT to a subDAO (IOT or MOBILE) in order to influence the DAO’s Utility Score, participate in new Subnetwork Proposals, or participate in overall governance of the Helium Network.
 
-We also believe that there should be an additional incentive for current staked HNT holders to become veHNT holders at the transition period but will defer our recommendations to a subsequent HIP. We also believe that this incentive should apply to any new veHNT holders as any amount of HNT can be locked in escrow. The current staking requirements of 10,000 HNT are no longer necessary for veHNT.
+According to [HIP 52][HIP 52] and [HIP 53][HIP 53] veHNT stakers will earn both IOT and MOBILE tokens, respectively, by staking their veHNT in support of these subDAOs and participating in their governance. The IOT subDAO sets aside 6% of all emissions as does the MOBILE subDAO. A further elaboration of veHNT is also available in [HIP 51][HIP 51]. It's important to note that the current minimum staking requirements of 10,000 HNT are no longer necessary for veHNT.
 
-**Staked HNT in cooldown**
+### Encourage initial veHNT staking
 
-At the time of transition, any staked HNT that is in cooldown (as defined by [HIP 25][HIP 25]), will be converted to vesting SPL HNT. The Solana Token Program and ecosystem supports various forms of token vesting. The remaining cooldown period on the Helium blockchain will be converted to a timestamp at the time of transition and the remainder of the cooldown will continue on the Solana blockchain.
+We believe that there should be an additional incentive for staked HNT holders to become veHNT holders at the transition. With veHNT staking, any holder of HNT can stake any amount of HNT and are not restricted to the 10,000 HNT limit imposed by current Validator staking. We propose that a 3x veHNT bonus is applied to any wallet that stakes HNT in the introductory period. This should apply to any wallet that has a staked HNT from a Validator and any new staker in the first seven days after the account state is transferred to the Solana blockchain. This bonus grants these "genesis" stakers an increased opportunity to earn subDAO tokens if they stake their veHNT to the IOT or MOBILE subDAO.
+
+The core developers will work with the community to build an application to help stakers signal intent to stake their HNT to veHNT. We will also explore ways to allow multiple staking periods as has been requested by community members.
+
+### Enable Hotspot and Validator Participation in the Solana Ecosystem
+
+The Solana ecosystem enables HNT, MOBILE, and IOT holders to participate in a whole host of activities outside of staking in veHNT within the Helium ecosystem. We would like to enable all Hotspot and Validator owners to engage in this wide ecosystem as it continues to develop. We also recognize that most Helium wallet holders are new to the ecosystem. In order to facilitate wallet migration and usage, the core developers will work with applications teams to help all wallet owners to access their assets whether they are on the Helium Wallet (black icon) mobile application, the Rust-based helium-wallet CLI, or the Ledger application.
+
+In addition, the Helium core developers will "seed" every new address on the Solana ecosystem that contains a Hotspot or a Validator with at least enough SOL to process about 100 transactions on the Solana ecosystem. This will be done at the snapshot time when the Helium blockchain state is imported into Solana Mainnet. This should allow all new Solana wallet holders the ability to transact immediately and not need to buy SOL.
 
 ## Multiple Oracle Operators