Hop Protocol

Author: Shane Fontaine

The HOP Community Multisig has efficiently distributed payments for the HOP DAO since its inception. These distributions have been made to delegates, multisig signers, bonders, and AMM reward contracts (in the form of liquidity incentives).

The multisig initially received 20,000,000 HOP during the creation of the tokens and many of these have been distributed into circulation. The complete breakdown of the distributions to date are below:

Date	Distribution Amount	Distribution Type	Tx Hash
Oct 24, 2022	5,060,000	AMM, Bonders (retroactive)	Etherscan
Nov 23, 2022	2,900,000	AMM, Bonders	Etherscan
Dec 01, 2022	21,785.38	Delegates	Etherscan
Dec 21, 2022	2,900,000	AMM, Bonders	Etherscan
Jan 17, 2023	2,960,812.88	AMM, Bonders, Delegates, Multisig Signers (retroactive)	Etherscan

The HOP Community Multisig now has 6,157,401.72 HOP tokens available, or about 2 months of supply. At the current run rate, approximately 2,941,299.13 HOP is distributed each month, which equates to approximately 3.53% of the total HOP supply each year.

This RFC hopes to achieve consensus that the HOP Community Multisig should be refilled at this time in order to continue efficient distributions from the HOP DAO into the hands of HOP stakeholders.

Actions

If consensus is achieved, this proposal will send 11,765,196.52 HOP from the HOP DAO to the HOP Community Multisig. This number represents roughly 4 months of distribution and approximately 1.16% of the total HOP supply, capping the liabilities of the HOP Community Multisig.

Per HIP-15, this distribution, as well as future distributions to refill the multisig, will target approximately 4 months worth of DAO expenses, refilled via on-chain governance vote every other month.

The calculation of 11,765,196.52 HOP was achieved by looking at the cumulative distribution of the prior two months and using that to approximate the next 4 months’ expenses. Any major, forward-looking changes, such as newly accepted & forthcoming distributions or the ending of incentive programs, should be taken into consideration when calculating this number for future refills.

Should the RFC be widely accepted, a delegate will conduct a temperature check on Snapshot and a subsequent on-chain proposal. If there are no material changes to the structure, future refills of this nature will bypass an RFC and proceed directly to a Snapshot vote.

Voting Options:
* Yes
* No
* Abstain