One of the goals of the faucet is to help distribute a significant amount of honey to broad and inclusive set of stakeholders. However, we would prefer if people who participate in the faucet don’t just immediately sell the honey because then they aren’t actually stakeholder, to help encourage the behavior we can an add an additional game to the faucet, where honey is held for a user and unlocks some time after they stop claiming, forcing them to choose to accumulate more honey or stop and wait before they can sell. By weeding out people who are interested in selling over the short term we can more effectively target the honey distribution towards users that have a longer term interest in the community success, and make it less attractive to people who want to immediately sell.
As a recap the current faucet mechanism works like this:
- each period x% (currently 5) of the faucets balance is distributed to all registered users.
- A user cannot immediately claim a distribution, but must register and then come back and claim the next period. If they claim they will automatically be registered for the next period, if they fail to claim in a period their share will be forfeited and they would need to start the registration and claim flow over from the beginning.
This is a pretty simple but elegant mechanism, the faucet will never run out of honey and can support an arbitrary large number of users. It can be topped up via conviction voting, making it a simple extension to the 1hive DAO.
- each period x% of the faucet’s unallocated balance is allocated to all registered users
- when a user claims a distribution, they do not receive honey in their wallet but an internal balance is stored and accumulated in the contract along with the block number.
- the user can withdraw their balance if they have not made any claims in the last y blocks.
I’m not sure if adding this extra complexity to the faucet is worth it, or if the fact that you can’t immediately sell would remove too much of the fun from the faucet distributions, but thought it was interesting enough to write up and have a discussion about.