As you may be aware, there is a new Helium Improvement Proposal (HIP-83) aimed at enhancing the PoC mechanism. In summary, this proposal suggests changing how witness reports are selected for rewarding by opting for the earliest reports. Currently, witness reports are randomly selected from all reports received during the PoC window (~3 minutes).
Determining "the earliest reports" will not rely on the absolute time the hotspot decides to report the PoC but on the time the Oracle receives the report. This approach addresses the issue of hotspot-reported time unreliability, and as a result, the hotspot's IP connection will have a significant impact on earnings.
The primary objective of this proposal is to reward hotspots that offer faster and more reliable service to sensors.
With considerable network coverage already in place across most cities, the focus should shift to improving service quality and increasing data traffic on the network. HIP-83 plays a vital role in achieving this goal by rewarding hotspots that deliver superior service to sensors.
The impact of HIP-83 on hotspot owners will depend on their hotspot's location and the quality of their internet connection. HIP-15 rewards 14 witnesses to ensure coverage redundancy. If your hotspot is located in an area with fewer hotspots where most beacons are witnessed by less than 14 hotspots, the impact of this proposal will be minimal. However, if your hotspot is situated in an area with many hotspots witnessing the beacons, the impact of HIP-83 will be more significant.
It's important to note that HIP-83 only affects witnessing rewards and not beaconing rewards. Witnessing rewards constitute a significant portion of total earnings for a well-configured hotspot setup.
While the earliest reports are prioritized under HIP-83, it does not guarantee that the same hotspot will be selected every time. Factors like the IP network introduce some level of randomness to the selection process. Nonetheless, hotspots with better IP connections will have a higher chance of being selected.
The chart below illustrates that by favoring faster reports, the total number of hotspots receiving witnessing rewards will decrease by 3.83%. If HIP-83 is modified to reward the first 25 witness reports, the decrease becomes 0.90%. (This chart is based on PoC data from May 5, 2023, 1:00:00 UTC, to May 6, 2023, 1:00:00 UTC epoch)
Following two charts show that HIP-83 increase the number of hotspots having less than 20 witness reports in an epoch.
By decreasing the number of witness reports for more hotspots, HIP-83 will increase the top end of the distribution, as shown in the following chart.
Furthermore, the severity of the impact on witness reports can be gauged by observing the number of hotspots with decreasing and increasing witness report counts, as depicted in the charts below.
To better understand the impact of HIP-83 on your hotspot, HeliumGeek offers two subscription-based features:
The PoC detail screen also displays the time gap for all
In conclusion, the introduction of HIP-83 brings forth an important change to the Helium network's Proof-of-Coverage (PoC) mechanism. By shifting the focus to rewarding the earliest witness reports, this proposal aims to enhance the quality of service provided by hotspots to sensors, ultimately boosting the overall network performance.
Hotspot owners should take note of the potential impact HIP-83 may have on their earnings, which is contingent upon their hotspot's location and the quality of their internet connection. It is important to analyze how these factors align with the proposed changes to witness report selection.
To fully grasp the implications of HIP-83 and engage in meaningful discussions, we encourage you to explore the complete proposal yourself.
Additionally, the Helium community actively participates in discussions and shares valuable insights on the official Helium Discord server. Join the conversation, ask questions, and exchange thoughts with the authors, fellow hotspot owners and Helium enthusiasts.
Together, we can shape the future of the Helium network and further strengthen its capabilities through collaboration and active participation.
Study the proposal, join the discussion, and let your voice be heard!