[HIP-5] Hermes Olympics: Ecosystem Retroactive Grant Program

I. Introduction

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The purpose of this proposal is to establish a partnership program for Hermes that embodies the ancient Greek Olympic spirit. The program aims to create mutually beneficial collaborations within the omnichain environment, focusing on capital efficiency and liquidity optimization. This proposal outlines the specific criteria, incentive structure, collaboration opportunities, and governance considerations for the partnership program.

II. Background and Rationale

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Our program is rooted in the fundamental principles of Ethereum, namely decentralization and an unwavering commitment to open-source development. We strongly emphasize forming collaborations with protocols that embody these principles by being either open-source themselves or showcasing a resolute dedication to decentralization.

By aligning ourselves with Ethereum's core values, we aim to foster a vibrant ecosystem of projects that share a common vision of transparency, inclusivity, and community-driven innovation. We believe that decentralized protocols hold the key to unlocking the true potential of blockchain technology, enabling greater security, resilience, and scalability.

III. Proposal Details

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1. Budget and Structure:

The partnership program begins with an initial budget of 30M $bHERMES, which will be strategically increased by 5% of weekly emissions, providing ongoing growth and sustainability. In contrast to the original partnership program, where 2% of emissions were channeled to the Partnership Program Budget and 5% for Partner Emissions, the revised model removes the extra 2% emissions completely for streamlined resource allocation.

New Proposed Budget

• An initial allocation of 30M $bHERMES, which will be permanently locked away from the circulating supply and directed towards partner $bHERMES contracts.

• To facilitate the inclusion of new protocols, 5% of weekly emissions will be continuously added to the original 30M $bHERMES allocation. This will provide a resource pool for future partners joining the program.

Structure

The program operates on periodical, recurring “Seasons”. A Season encompasses:

Term	Definition	Example
Season Duration	The predetermined span during which partners' contributions are eligible for rewards	3 months
Initial Season Duration	An initial buffer phase after the season starts to refine the sports for the season	1 month
Season Finale	The termination of the reward distribution phase for one season and the onset of the next	3 months after start
Judging Period	The period where rewards are disbursed as per each sport's guidelines	1 month
Maximum Budget	The cap of bHERMES allocated for a season	3M bHERMES
Sports	A set of perpetual sports that are available every season, with a budget that doesn’t exceed the season's maximum budget	Bribing
Events	Unique sports that occur during a specific season only	Top TVL Defillama

2. Sports and Participation Requirements:

Each sport has distinct partner on-boarding requirements. For instance, partners require a gauge to participate in the 'Bribing' sport, while 'Tooling' partners might not need one. Sports are unique, non-overlapping categories where partners compete for funding, involving retroactive funding to incentivize specific actions. Brief examples of sports include:

Sport	Definition
Bribing	Incentivizing gauge bribing for liquidity renting. Partners require a gauge for this category, and the pricing of bribes should correspond to their liquid value.
Accumulating	Encouraging efforts to increase Partners' $bHERMES holdings. Partners should accumulate via Partner $bHERMES, as we aim to incentivize long-term accumulators.
Tooling	Rewards for developing innovative tools or enhancements to existing ones that benefit the protocol. Tooling partners are not required to have a protocol but are expected to provide unique contributions.
Integrations	Encourages open-source interoperability with other platforms or protocols.

Partners can participate in any sport, but their partnership status and associated co-marketing efforts are determined by their specific participation and compliance with each sport's requirements.

3. Co-Marketing Opportunities:

The partnership program fosters an atmosphere of synergy by promoting co-marketing activities. Such joint initiatives can help both Hermes and our partners to amplify our reach and increase engagement within the wider crypto community. These collaborative activities could encompass co-hosting interactive Ask-Me-Anything (AMA) sessions, jointly developing and sharing informative articles, or other combined marketing efforts.

A key aspect of our co-marketing strategy includes featuring our partners directly on our user interface. This prominent visibility provides partners with a valuable platform to increase their exposure, while offering our users an integrated, comprehensive view of our partnerships.

These promotional efforts are not uniform but will be tailored specifically to each partner. They will be carefully crafted based on the partner's status, the nature of their contribution to the program, and the particular sports they participate in, ensuring a mutually beneficial promotional strategy that aligns with both parties' goals and capabilities.

IV. Implementation Plan

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The establishment and operation of the partnership program will follow a meticulously crafted roadmap, emphasizing seamless coordination, effective execution, and the integration of continuous feedback. The plan involves the following stages:

1. Program Initialization

Upon the passage of this proposal, we will kick-start the process of establishing sports and planning the initial season. These foundational activities will be carried out through our governance mechanisms, ensuring full transparency and community involvement in the decision-making process.

2. Partner Alignment

In parallel, we will start aligning with potential partners who have expressed interest in our program. This will involve comprehensive discussions about the sports categories they wish to participate in and the various co-marketing initiatives that can be undertaken.

3. Program Launch

With the key components in place, we will officially launch the first season of the partnership program in sync with the v2 launch of our platform. We will allocate the budget to the respective governance contracts. This simultaneous rollout will create a synergistic effect, maximizing the visibility and impact of the program.

4. Program Operation and Iteration

Following the launch, we will continuously track the progress of the seasons and sports, evaluate the effectiveness of the program, and make adjustments as necessary. This agile approach will allow us to quickly respond to changes in the environment and continuously enhance the program for the benefit of our partners and community.

All decisions related to the addition, modification, and reward distribution of sports and seasons will strictly follow the procedure outlined in governance process using severity 2 governance contract, adhering , adhering to the specified timeframes, thresholds, and quorums for each stage.

Phase	Timeframe	Quorum	Proposal Creation Threshold
Request for Comment	Minimum of 3 days	-	-
Temperature Check	5 days	10% of bHERMES	-
Governance Proposal Severity 2	2 day waiting period, 7 day voting period	12.5% of bHERMES	2.5% of bHERMES

Dependencies:

The successful implementation of this program is dependent on the successful passage of this proposal, alignment with interested partners and community vetting.

Potential Risks and Challenges:

The program's implementation might face potential challenges related to partner alignment, budget allocation, and governance process. We believe that these can be effectively mitigated through open communication, collaborative problem-solving, and adherence to the principles of transparency and decentralization.

Documentation and Updates:

This proposal will be linked to our GitHub page, where all changes related to seasons and sports will be meticulously documented. Any modifications or updates will require a pull request to ensure that our community has up-to-date access to the protocol's decision-making process. This commitment to transparency will allow our community to keep track of historical versions easily, fostering trust and inclusivity.

V. Governance Considerations

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Contextualization

The proposed changes embody the essence of Hermes' guiding principles and values, particularly in the realms of open participation, transparency, and community involvement. This program promotes active collaboration and competition among partners, thereby fostering innovation and mutual growth, which aligns seamlessly with Hermes' ethos of contributing to the broader blockchain ecosystem.

The program's unique structure positions it to attract partners through lucrative incentives, thereby promoting beneficial actions within the Hermes community. For instance, the 'Bribing' sport incentivizes partners to engage in 'Bribing' actions, illustrating the benefits of using Hermes' Uniswap V3 omnichain liquidity renting. The rewarding structure underscores the mutual benefits – partners receive funding, and the community enjoys the perks of innovative advancements.

The decentralization of key decision-making processes, vested in the community's hands, enhances the overall trustlessness and security of the Hermes protocol. Through the outlined 3-step governance process, we ensure that any modifications to sports, seasons, or reward distributions are subject to community consensus and scrutiny. This approach reduces reliance on single parties and encourages trust in collective wisdom and judgement.

Incentivizing partner participation through sports like tooling and integrations promotes a diverse range of contributions, potentially leading to increased Hermes ecosystem adoption and meaningful advancements within the liquidity renting platforms. This broader engagement also enhances the security of the program by ensuring that partners meet specific prerequisites for different sports, thereby mitigating the risk of exploitation by malicious entities.

VI. Community Engagement and Support

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To foster Hermes in a decentralized manner and increase adoption while maintaining efficiency, the partnership program proposal is designed to leverage community engagement. It begins with a Request for Comment (RFC) process where the community gets the opportunity to provide input on the program's key aspects, promoting inclusivity and diverse perspectives.

Vital for refining the program's structure and aligning it with Hermes' core values, robust community discussions and debates will be encouraged on our governance forums. These discussions play a crucial role in fostering consensus-building and engagement.

Risk mitigation is a crucial part of this process. Our active governance plays a significant role in vetting partners and their contributions. This ensures that partners meet the program's standards and that rewards are justly allocated. Red flags should be raised when there is a lack of information or transparency, allowing anyone in the community to vet information about projects/partners and contributions. This practice ensures a fair reward distribution among deserving partners and secures the beneficial impact to the ecosystem.

The proposal will ultimately be shaped by community feedback and evidence of support, ensuring that the decision-making process truly reflects the collective wisdom and best interests of our community.

VII. Next Steps and Decision-Making Process

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To kick off the proposal, we'll have a Request for Comment (RFC) stage. We welcome all community members to share their thoughts and feedback.

Upon completion of the RFC stage, we will initiate a snapshot vote for community members to express their stance on the proposal. This voting period will span 3 days (72 hours), and community members will be presented with two voting options:

• Option 1: Affirmative Vote ("Yay") - Indicates acceptance of the proposal in its current form.

• Option 2: Negative Vote ("Nay") - Signals the need for further discussion and refinement of the proposal.

The decision will hinge upon the majority consensus. If an affirmative majority ("Yay") prevails, we will proceed with the implementation of the proposal as described in the outlined Implementation Plan. Conversely, if a negative majority ("Nay") emerges, we will re-engage in community discussions, assimilate additional feedback, and strategize for improvements, with the aim of presenting a more refined proposal that aligns with the community's perspectives and the ecosystem's needs. This iterative process ensures that each significant decision we make is thoroughly deliberated and scrutinized, offering ample opportunities for community-driven revision and enhancement.

VIII. Conclusion

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In conclusion, this proposal outlines the establishment of a Hermes partnership program that aims to foster a robust ecosystem of cooperative entities. This program, reminiscent of the ancient Greek Olympic spirit, encourages competition and collaboration in the omnichain environment.

Hermes protocol is more than just a set of smart contracts - it is a thriving community with a focus on contributing to the broader blockchain ecosystem. As we continue to develop and improve our protocol, we value the input and feedback of the rest of the community. In shaping Hermes's future, your participation, votes, and dedication to collaboration and transparency are essential. Our collective commitment to a democratic and inclusive process is what will drive us forward.