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DIP-3: Amendment 1
This amendment removes the peg for converting fiat or other crypto into $DIMO when marketplace rewards are generated for users. If passed, the DIMO Foundation would 1) provide this service by converting using the market price for $DIMO as determined by popular price oracles and 2) would be able to use its best judgement to limit or deny this service, or to use a higher price for $DIMO if, for example, it determines there isn't sufficient actual volume or genuine price discovery to give legitimacy to the market price.
Given the increased availability of $DIMO and improved regulatory clarity in relevant jurisdictions, the 1:1 USD to $DIMO peg employed in the original of marketplace issuance is no longer needed.
// If passed, this proposal would incorporate the following changes to the the Specification section of DIP-3:
Users are able to opt-in to sharing data with licensed DIMO Apps. These apps must specify what data they are collecting, what they may do with it, and what portion of any data sales revenue that they will keep, if applicable.
For all transactions involving the sale of user data or access, the amount will be translated to $DIMO tokens and the portion owed to the user will be distributed in $DIMO and 1% of the transaction will be burned.
If the the transaction is denominatedend data customer pays in $DIMO, the calculation is obvious. If denominated or paidthey pay in fiat (USD, EUR, GBP) or other assets (DAI, BTC, ETH), amounts are converted to $DIMO at the current market price at the time of the transaction. The node operator may choose between CoinMarketCap and CoinGecko for the price oracle.$1 USD of value will translate to 1 $DIMO. This exchange rate may be altered by any future governance vote.
The easiest way to understand this mechanism is through examples of various transaction types, all listed below.
For simplicity, these examples assume a market price of $10 USD per $DIMO token and round to two decimal points.
Marketplace Issuance generated by the sale of aggregate and anonymized data is split evenly among all users who are currently opted into and contributing data to that data pool at the time the reward is distributed.
Hypothetical Example: You grant DIMO Explorer, a licensed DIMO App, the right to sell your aggregate and anonymized data when you opt-in to Baseline Rewards. As a part of the opt-in, users agree that Explorer keeps a 5% cut for their efforts, leaving users with 95%. In 2023, Explorer generates $1,000,000 in USD by selling reports on overall traffic patterns, battery performance, self-driving system usage, road quality, and other driving behaviors.
- Burn: 1,000 $DIMO ($1,000,000 / 10 $perDIMO x 1%) 10,000 $DIMO (1,000,000 x 1%)
- Explorer receives $49,500 USD ($1,000,000 x 99% x 5%)
- Users receive 94,050 $DIMO ($1,000,000 / 10 $perDIMO x 99% x 95%) Users receive 940,500 $DIMO (1,000,000 x 99% x 95%)
Marketplace Issuance generated by the direct sale of user data will go to the respective user. 99% of net proceeds are issued to the user and 1% is burned.
Hypothetical Example: You grant DataWiz, a DIMO App, the right to sell your anonymized but disaggregated (vehicle specific data). You share trip telemetry data and vehicle status, but not location or glovebox (license, title, insurance) data. You agree to DataWiz's license agreement that gives them a 5% cut of your data sales.
Verizon subscribes to your cell coverage data so they can map their signal strength. Panasonic subscribes to your battery data, which they use to improve their designs. Other businesses subscribe to similar streams. DataWiz receives an aggregate $60/month in USD from brokering your data.
- Burn: 0.06 $DIMO each month ($60 / 10 $perDIMO x 1%) 0.60 $DIMO each month (60 x 1%)
- DataWiz receives $2.97/month USD ($60 x 99% x 5%)
- You receive 5.64 $DIMO per month ($60 / 10 $perDIMO x 99% x 95%) You receive 56.43 $DIMO per month (60 x 99% x 95%)
Marketplace Issuance may also be earned directly from apps. Incentives must be in $DIMO. 99% of the incentive is issued to the user and 1% is burned.
Hypothetical Example: All Farm Insurance is a DIMO App that gives new customers 500 $DIMO when they switch to All Farm and share their vehicle health, location, and mileage data for better insurance rates.
- Burn: 0.51 $DIMO (50.5 x 1%) 5.05 $DIMO (505.05 x 1%)
- You receive 500 $DIMO (50.50 x 99%) 500 $DIMO (505.05 x 99%)
// And would make the following changes to the Implementation section.
DIMO apps may burn and distribute $DIMO directly. In cases where DIMO apps do not have or wish to use $DIMO, or do not wish to handle the distribution directly, the DIMO Foundation will assist in conversions and distributions. The DIMO Foundation reserves the right limit or deny the service of assisting third parties in exchanging fiat or other crypto for $DIMO, or to use a higher price for $DIMO if, for example, it determines there isn't sufficient actual volume or genuine price discovery to give legitimacy to the market price, or if the asset being exchanged is difficult or unwise to accept.
To assist in this matter, the DIMO Foundation has engaged Digital Infrastructure Inc. to process data and calculate distributions. As is the case with Baseline Issuance, users are not eligible for rewards if their wallets are flagged by Chainalysis' AML tools as risky or fraudulent.
If passed, DIP-3 would be updated as specified above after the four day timelock concludes.
Please cite this document as:
The contract addresses for $DIMO are 0x5fab9761d60419c9eeebe3915a8fa1ed7e8d2e1b on Ethereum and 0xE261D618a959aFfFd53168Cd07D12E37B26761db on Polygon. Please always confirm that you are interacting with these contract addresses and not those of a fraudulent imitator. This proposal may not be enacted if it violates Cayman Islands law. Please triple check that any communications are authentic as it’s common for scammers to try to trick you into sending them crypto or into revealing your private keys.