TIP-039: Modified Proposal for Gas Reimbursements for v2 Node Operators

Proposals
1

TIP-039: Modified Proposal for Gas Reimbursements for v2 Node Operators :fuelpump::two:

Vote Type:

Token holder DAO snapshot, 5 day vote window

DAO Elected Representative Sponsor:

Vict0r, David

Overview:

This is a modified proposal for the Threshold DAO to reimburse tBTC v2 node operators for gas costs their clients incur when sending necessary transactions to Ethereum. The differences between this proposal and TIP-037 are:

  • An upper bound on the amount of ETH the Threshold Treasury Guild will reimburse per month
  • An initial timeframe on this subsidy so that the DAO can collect data and reevaluate this strategy
  • An addition that the Threshold Treasury Guild can adjust the ETH upper bound if needed

Milestones and Deadlines:

Gas reimbursements start when minting goes live which starts in January. The subsidy outlined in the proposal will lasts 3 months. During that time the DAO can collect data and revaluate to extend, modify or end this proposal.

Who is Involved:

Threshold Treasury Guild, tBTC v2 Node Operators

Why:

The goal of this proposal is to avoid “dishonest” tBTC v2 operators modifying their clients to maximize returns.

Dishonest operators modifying clients can slow down the tBTC v2 network.

Detailed Summary:

tBTC v2 operators run off-chain clients. Off-chain clients occasionally send transactions to Ethereum. The client needs to pay ETH in gas for the transactions.

There is no efficient way to force someone to send that transaction. This means, a situation could emerge where operators modify clients to not send any transactions in order to not spend any ETH on gas as a method of returns optimization. This would slow down the network.

Expected Cost:

This is not expected to be a major cost for the Threshold DAO if passed.

The expected cost for this proposal is variable because it is based on tBTC v2 network usage and Ethereum gas rates.

This table gives an estimate of cost by function call frequency and by gas unit cost:

For more information on the purpose of these five transactions please refer to the tBTC technical docs here 3.

The expected cost for this proposal is between .197e and 1.97e per week.

ETH Upper Bound:

To support the Threshold Treasury Guild treasury management strategy and DAO operational efficiency an upper bound should be placed on the total ETH that can be reimbursed per month.

Based on the estimates above and conversation with Keep technical contributors 10e per month should provide enough coverage. However, based on conversation with the Threshold Treasury guild this number will be doubled to 20e per month to ensure planning for proper coverage and reimbursement execution during the timeframe of this proposal. This number represents and upper bound and not a spend mandate.

In addition, to provide maximum protection to stakers and flexibility to this decision making process - the Threshold Treasury Guild can adjust the upper bound during the timeframe of this proposal in the case that gas starts harder than expected.

Reimbursement Mechanism:

Reimbursement is automated through a Reimbursement Pool. More information on the Reimbursement Pool is located below.

keep-core/ReimbursementPool.sol at main · keep-network/keep-core · GitHub.

Tx Details (If required):

N/A

Additional Info (Optional):

This proposal is a modification of TIP-037.

5 Likes
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Thanks for the proposal. Seems reasonable and manageable for the DAO.

3 Likes
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Thank you for the Proposal Will, it is concise and well written.

I am in support of this proposal because it addresses the “need” to bring dishonest node operators into the light. There are malicious actors in the space that work to do harm, which are otherwise addressed as security risks.

In this scenario, however, the “bad” action is really more of operators not exercising transactions timely (as a way to save themselves money).

It is paramount to ensure the Network works efficiently at all times. I think a mechanism to reimburse gas costs meets this goal: it makes it clear to node operators they are “compelled” to process transactions as quickly as possible, and adds clarification as well as resources to facilitate.

2 Likes
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I support this proposal. Thanks @Will for setting it up.

2 Likes
5

I support this proposal. I think it is particularly critical to incentivize and support our operators at this early stage in the network. This proposal opens the door to prospective operators who may have otherwise passed up the opportunity.

Thanks for your work on this @Will !

1 Like
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This proposal has moved to Snapshot > https://snapshot.org/#/threshold.eth/proposal/0x9cb74754cda60277ef70970bfe85daba940ebe19849262b58122dc6582ffd253

1 Like