The new Human Routing Protocol is a layer that sits on top of the Human Protocol. If the core Protocol is the layer that executes the interactions of third parties, the Routing Protocol (or in English, Routing Protocol, RP) can be thought of as the layer that coordinates these agents. This was reported from the official Human blog, where they also stated that the new protocol simplifies execution, decentralizes updates and provides the reputation of agents on the network.
But why are there separate protocols? As they explained, the core of the Human protocol is responsible for execution. Separating the Routing Protocol from the execution layer – and bringing governance to the Routing Protocol – improves overall network stability. If the routing protocol determines a change in rates/prices, the HUMAN core protocol can simply take care of executing the new details, without getting caught up in arbitration.
What will the Routing Protocol do?
In the explanation, they also detailed that the Routing Protocol encourages community contributions to the network. One of the ways to achieve this is by providing the framework to enable these incentives through, for example, staking, slashing and reward mechanisms.
“The Routing Protocol will also provide a plan to coordinate external agents that contribute to the Protocol. Through the RP, companies and tool providers (Registration and Reputation Oracles, for example) can compromise HMT (the native token of Human Protocol) to access the network”, they indicated.
“This works according to a model of proof of balance (or equilibrium). Anyone wishing to participate in the network must deposit a sum of HMT, much like a security deposit, to incentivize good behavior. The balance can be cut if the user misbehaves (see “slashing” below). It also plays an important role in determining the priority of the operator when receiving work”, they added.
On the other hand, there is “governance staking”, whereby any user or network operator can stake HMT in exchange for vHMT, a token used for government voting. This would encourage the active participation of the community in the network.
What is the role of staking?
Taken together, the staked tokens could reduce operator fees or collateral conversion costs. A discount mechanism could be introduced to reduce fees if paid in HMT, rather than other collateral.
Staking locks would also protect against flash loan governance attacks (both minimum lock time and unlock fees can deter this behavior).
Voting: Governance Minimization Model
This proposal focuses on alternative conviction voting, whereby voting power increases with each vote, along with the voter’s reputation (i.e. voting power will increase if, for example, you submit valuable projects, solve tasks, or contributes to overall development). This model is expected to use Human Protocol reputation oracles to adjust voting power. This system would provide strong incentives to contribute to the HUMAN project.
Slashing and soft freezing
To discourage bad behavior within the network, slashing will be introduced. For example, if a user attempts to rig voting or refuses to pay workers in a workgroup, their participation may be cut.
In the event of operator inactivity, pool payouts will be frozen for a set time, acting as a trial warning.
Disclaimer: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information set forth herein should not be taken as financial advice or investment recommendation. All investment and commercial movement involve risks and it is the responsibility of each person to do their due research before making an investment decision.
It may interest you:
Investments in crypto assets are not regulated. They may not be suitable for retail investors and the full amount invested may be lost. The services or products offered are not aimed at or accessible to investors in Spain.