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.
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 here 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.
450,000,000 $DIMO (45% of the total supply) has been allocated to fund the Baseline Issuance. The initial airdrop was effectively a large distribution of Baseline Issuance and left 382,491,185 $DIMO. This pool will be distributed over 40 years by issuing 1,105,000 $DIMO to users per week for the first year, with issuance decreasing by 15% each year.
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.
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.
The amount and terms will vary as specified by the app developer, and agreed to by users, so long as the reward is remitted in $DIMO and 1% is burned. The Foundation can accept cash and remit $DIMO on the app's behalf if the app developer prefers not to interact with $DIMO directly. For more information, you can check out DIP-3: Marketplace Issuance & Token Burn.