The Routing Protocol incentivises contributions to the Human Protocol network

1 month ago 23

The Routing Protocol is designed to incentivise contributions to the broader network thanks to some changes within the ecosystem.

The team explained how the Routing Protocol works, and the changes included to ensure that the network works smoothly. 

According to the team, the core HUMAN Protocol is responsible for execution. However, the need to separate the Routing Protocol from the execution layer is to ensure that the stability of the overall network is enhanced. 

If the Routing Protocol determines a change in fees/pricing, the core HUMAN Protocol can simply be tasked with executing the new details, without getting caught in matters of arbitration.

The team explained that the Routing Protocol incentivises contributions to the network by the community. It accomplishes this by providing the framework to make these incentives possible through, for example, staking, slashing, and reward mechanisms.

Furthermore, the Routing Protocol (RP) provides a blueprint to coordinate third-party agents who contribute to the Protocol. Through the RP, businesses and tool vendors (Recording and Reputation Oracles, for example) can commit HMT to access the network.

The team added that the Routing Protocol operates on a Proof of Balance model. This implies that those who wish to participate in the network must put up a sum of HMT to incentivise good behaviour. The HMT balance can be slashed d if the user behaves poorly

Furthermore, there is governance staking on the protocol. With the governance staking, any user or network operator can stake HMT in return for vHMT, a token used for governance voting. Thus, incentivising active participation in the network by the community.

Routing Protocol said lock-ups from staking also protect against flash loan governance attacks (both minimum lock-up time and unstaking fees can deter this behaviour).

The Routing Protocol also wants to adopt a governance minimisation model. In this model, voting power increases with each vote, along with the voter’s reputation. 

The model will leverage HUMAN Protocol Reputation Oracles to adjust voting power. Hence, providing strong incentives to contribute to the HUMAN project.

To discourage bad behavior within the network, slashing will be introduced. Users who attempt to tamper with voting or refuse to pay workers in a workpool could see their stakes slashed. 

The team concluded that in the case of operator inactivity, payouts from the pool would be frozen for a certain amount of time, acting as a trial warning.

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