Earning $DIMO
How drivers and fleet operators can earn more $DIMO
Driver rewards will be based on a combination of baseline and market demand for vehicle data and connectivity.
In the early stages of DIMO's development, the vast majority of rewards will come from Baseline Demand Signal. As the network grows, this balance will likely shift the other way, thus removing the need to inflate the circulating supply of $DIMO in perpetuity. This is comparable to other web3 networks like Helium, where their rewards from proof of coverage will shrink in comparison to rewards from data transfer over time.
Rewards from Baseline Issuance
Baseline Issuance refers to the concept of rewarding drivers based on how long they've been connected and how they're connected, even if there is no end customer using their data. The goal is to prime the network by incentivizing drivers to connect the types of cars and stream the types of data that we expect will be valuable to data consumers and app developers in the future.
Each week, 1,105,000 $DIMO tokens will be distributed to eligible users based on how long they’ve been connected and how they’re connected. The points mechanism is similar to the one deployed during the testnet period, however the distribution will occur weekly and points will reset on each distribution.
The percentage of the 1,105,000 $DIMO issued each week that a given user receives will equal their weekly points divided by the total number of points of all other users. In other words, if you have 10,000 points in a week, and all other users have 20,000,000 points combined, you have 0.05% of the points, which equals 552.50 $DIMO. This simple and predictable style of issuance is known as Baseline Issuance and the amount of $DIMO sent each week is set to decrease 15% every 52 weeks (approximately every year) unless adjusted by a governance vote of token holders. For more detail, check out DIP-2, which is a draft pending governance vote.
With this design, the aim is to:
Reward and give control to those who show long-term support for DIMO;
Incentivize a continuous data connection, which tells a fuller story of driver behavior and vehicle performance when maintained over a long-period of time;
Reward those who provide a greater quantity and frequency of reliable data; and
Avoid rewarding based on distance or time traveled as not to incentivize unnecessary and wasteful driving.
Rewards from Market Issuance
DIMO users and apps should be rewarded based on the value that they generate to create a more direct link between incentives and optimal behaviors. Those who create the most value for the network should have the largest $DIMO rewards and the biggest voice in its future direction.
When users transact with licensed DIMO apps, such as Tenet, Caribou, and Vehicle Genius, those users receive additional $DIMO tokens and some $DIMO is burned.
Last updated
