Incentive model
Last updated
Last updated
Stakeholders in Hippocrat are principally categorized into users and governance participants. The governance participants, inclusive of DAOs, are motivated to create an efficient protocol that functions well and continually evolves. In contrast, users are enticed to utilize the protocol either to resolve their concerns or to achieve economic advantages. On occasion, an individual may assume both roles, but generally, the roles are clearly demarcated. It's crucial that the incentive model is separately designed for each role to avoid confusion and to better align with the motivations of each role.
Hippocrat seeks to comply with regulations in key countries for a trusted and sustainable token economy, and will determine its incentive model through consensus with the community based on finalized legislation for digital assets currently underway in key countries such as the US, Europe, and South Korea.
Active governance participants will strive to present agendas and persuade other governance participants to consider their arguments and views on certain policies or matters at the protocol level. Particularly, if they are part of a DAO, they might receive compensation from the DAO as a token of appreciation for their efforts in evolving the protocol to gain acceptance from more users and stakeholders. This compensation could take the form of a reward for accomplishing a specific task by contract or could be a salary earned by signing a work contract for a specific duration. This reward originates from a pool reserved for DAO rewards, and a fee that is a percentage (e.g., 10%) of the value of data transactions, which is the DAO's income source. Thus, as the protocol functions well and evolves, the reward pool accessible to DAO members will increase. The mentioned distribution rate is exemplary, and the actual distribution rate will be decided by the DAO through discussion and consensus among its members.
Users require a currency to efficiently exchange the value they offer to each other on the protocol. To facilitate this, Hippocrat permits users to use not only HPO, the protocol's native token, but also stablecoins pegged to fiat currencies like Bitcoin and the U.S. dollar. These are the most globally accepted currencies in both decentralized and fiat-based ecosystems and can be used to exchange value between users. The Hippocrat user-specific incentive policy's initial proposal, which is open to alterations by a new incentive policy proposal, is as follows:
Data subjects hold the right to view and decide how their data is used and transacted. They can benefit from services using their data as an incentive and accept financial compensation offered by data utilizers for sharing their data. The data subject and the data issuer then proportionally share the remainder, excluding protocol fees and deductions for public healthcare financing. However, the principle is that the data subject receives the most substantial share under all conditions, with a minimum of 40% and a maximum of 90% of the total reward going to the data subject.
The data issuer provides the cost and expertise required to create the data, and has the authority to set the compensation split between the data subject and the data issuer when the data is issued. If the data subject derives economic benefit from the data transaction, as determined by the data issuer, the data issuer will receive compensation based on this split as an incentive. However, the data issuer can only set a share that is no more than half of the data subject's share. Within this limit, data issuers are free to set their own share, but if a data subject decides that another data issuer's share is more reasonable, they will have an incentive to switch issuers, which means that issuers like hospitals will lose patients to other hospitals. However, the more data that can only be issued by a specific organization, the more likely it is that the allocation rate will be set so that the issuing organization gets a larger share. Hippocrat allows these market mechanisms to determine the appropriate allocation rate.
Data utilizers secure consent to collect and use data by offering data subjects an attractive service or financial reward. The standardized legal notices provided by the protocol minimize compliance costs and leverage the SDK to make data collection and use more efficient. The higher the public interest of the data you are collecting and utilizing in the legal notice, and the less personally identifiable it is, the larger the share that is allocated to public resources. Public funds are managed separately based on the nationality of the data subject and are donated to national governments or public healthcare organizations. This allows global pharmaceutical companies or healthcare providers to expect appropriate cooperation from public authorities when utilizing data of public interest, such as medical research, in their respective countries.
