Hermes DeFi Delegation Incentive Program
Securing and decentralizing blockchain networks is a critical part of adoption. When Hermes DeFi decided to come to the Harmony blockchain, we didn’t initially plan on participating in this goal. However, as we became more integrated in the Harmony ecosystem, we quickly realized that we possessed the skills and means to support the network directly.
To this end, we have created our own Harmony validator node. With this system, individuals will be able to delegate $ONE to us through official Harmony systems. If you have never delegated before, this process can be intimidating. We will write an article that details this process and publish it before the conclusion of our governance vote. Delegating with Hermes DeFi allows us to vote on governance proposals on your behalf while also earning $ONE (when we are an elected validator).
To earn a return on delegated $ONE, you must be delegated to an elected validator. The exact number of delegated $ONE required to be elected varies, but a rough estimate is 1,000,000+ $ONE delegated to consistently achieve election. To quickly achieve this milestone, we are proposing to supplement rewards of our delegators with $PLTS.
Because this represents a somewhat significant amount of $PLTS distributions, this decision will be made by our first Harmony governance vote using $IRIS! To participate in this governance vote, head over to our snapshot page.
Briefly, these rewards will be distributed through a smart contract that returns $PLTS proportional to a user’s delegation. This smart contract will return a target (300 user est.) additional 20–30% APR in $PLTS. $IRIS holders will be able to vote for their desired emissions of $PLTS from the Hermes Treasury. The choices for governance voting are:
A. 300 users at 2500 $ONE each ($850) = ~20,775 PLTS total emissions (~$11,426) for 30% APR boost. Effective increase in emissions of ~0.0115 PLTS per block (+1.6%).
B. 300 users at 5000 $ONE each ($1700) = ~27,700 PLTS total emissions (~$15,235) for 20% APR boost. Effective increase in emissions of ~0.015 PLTS per block (+2.1%).
C. 300 users at 5000 $ONE each ($1700) = ~34,625 PLTS total emissions (~$19,043) for 25% APR boost. Effective increase in emissions of ~0.019 PLTS per block (+2.7%).
D. 300 users at 5000 $ONE each ($1700) = ~41,550 PLTS total emissions (~$22,852) for 30% APR boost. Effective increase in emissions of ~0.0225 PLTS per block (+3.2%).
E. No Increased PLTS emissions.
These calculations were performed with $ONE = $0.34, $PLTS = $0.55, and Emissions at 0.7 $PLTS/block. Relative increased emissions % will drop over time.
