NetMind Token (invalidated by April 16, 2024)

We upgraded our tokenomics starting April 16, 2024. The old version of tokenomics was implemented for one year and released 34,571,163 NMT into circulating. The tokenomics in this section are no longer valid.

NetMind Token (NMT) is the native utility token of the NetMind Chain. The total supply of NMT is 10 billion tokens. All tokens are locked in a smart contract, which will gradually unlock the tokens according to the distribution plan outlined below.

NetMind Token is designed to serve multiple functions within the platform, including payment for training and inference on the platform and as rewards for users who contribute their idle GPU resources to the network.

7.1 Distribution Plan

In this section, we quantify the distribution plan in percentages and amounts.

1. 40% of the total supply (4 billion NMT) is allocated as rewards for providers of computational power to the network, used for training and inference. This reward is known as the Volunteer Computing Network Connection Reward (covered later in this document).

• For the first 10 years, 1% (100 million) will be distributed annually, totaling 1 billion NMT.

• For the following 30 years, 0.5% (50 million) will be distributed annually, totaling 1.5 billion NMT.

• For the final 60 years, 0.25% (25 million) will be distributed annually, totaling 1.5 billion NMT.

2. 30% of the total supply is reserved for rewarding users who participate in staking. Users can choose to stake against any Mind Node, with an incentive to stake against the top 21 (Master Nodes).

• Each year, 0.3% (30 million) is released, totalling 3 billion NMT.

• 50% of the rewards go to staking users who have staked their tokens against any of the 21 Master Nodes.

• 30% of the rewards go to users providing liquidity supply.

• 20% of the rewards go to the top 21 Master Node operators.

3. 20% of the total supply (2 billion NMT) is reserved for the NetMind DAO community.

• The funds will be locked for the first 5 years, after which they will be managed through community voting and serve as the public funds for the NetMind community.

4. 10% of the total supply (1 billion NMT) is reserved for the NetMind technical team.Tokens will be unlocked at a rate of 0.1% annually over 100 years.

• Tokens will be unlocked at a rate of 0.1% annually over 100 years.

The duration unit "year" in the reward rules is calculated as 365 days, regardless of leap years.

The above is a stacked graph, which shows the distribution of released tokens across time for the three of the main cohorts described above: VC providers, Staking and NetMind technical team. The Staking rewards are further split between the rewards for the users participating in staking (orange) and the staking reward for the Top 21 Main Nodes (in light blue). We have excluded the 20% reserved for the DAO from the stacked graph, as it doesn't distribute over time.

7.2 Reward Types

In this section we cover the different types of rewards in the network. NMT serves not only as a means of payment for various fees on the NetMind platform and NetMind Chain, but also as a reward for various types of participation in the network, which are detailed below.

7.2.1 Volunteer Computing Network Connection Reward

Volunteer Computing resource providers receive rewards in NMT simply by being connected to the network, regardless of machine utilization for tasks such as training or inference. The user receives these rewards if the machine is online and connected to the network for more than 5 non-consecutive hours in one 24 hour period.

The amount of reward a Volunteer Computing Resource provider is allocated is determined by three factors: the GPU type, and the network bandwidth speed and the amount of connected machines on any given day (each daily reward allocation will be divided across all connected machines).

7.2.2 Computational Power Utilization Fee

Users who train or fine-tune models on the NetMind Power platform pay to do so in NMT. The provider of the GPU resources on the network that is used to perform the training or fine-tuning is similarly rewarded in NMT.

There are two methods of training on the NetMind Power platform, Sync mode, in which the model is trained in a synchronous manner, and Async mode, in the which the model is trained in an asynchronous manner.

Below is a breakdown of how the fees that users pay for these two types of training are distributed:

• Sync mode, 50% of the total computational power utilization fee will be paid to Volunteer Computing resource providers that provide power for the training job, while the remaining 50% will be burned.

• Async mode: 20% of the total computational power utilization fee will be paid to Volunteer Computing resource providers that provide power for the training job, while the remaining 80% will be burned.

These percentages are subject to change in the future. A reminder that all transactions on the blockchain consume gas fees. A small percentage of NMT for each training task will go towards Gas fees.

The user will receive this reward regardless of how long the machine was connected to the network during a 24 hour period.

During the time the machine is being utilised for training or fine-tuning, the user is also receiving the Network connection reward.

Sudden disconnection: If the user’s machine disconnects from the network during a training job (i.e. When the user is earning a Machine utilisation reward) cause the job failed, they will not receive Network connection rewards for that 24 hour period. But they still received their share of Machine Utilisation Rewards

7.2.3 Staking Rewards

Users can stake their NMT tokens with any of the 21 main nodes and receive NMT rewards based on the distribution plan. This is covered in detail in the NetMind Chain section of this white paper.

7.2.4 Mining Rewards

Users can join the NetMind Chain network as node operators. In addition to receiving NMT rewards for node operation, they will also earn Gas fee rewards from users training models or using other services on the platform. This is covered in detail in the NetMind Chain section of this white paper.

7.3 Election and Voting Rights

As mentioned in this white paper, NetMind Chain has 21 Master Nodes which other Mind Nodes then elect through staking. Community members can use NMT to vote on proposals and govern the community, promoting a democratic, fair, and transparent environment.

7.4 Cross-Chain Bridge

Cross-chain bridge facilitates the transfer of NetMind Token between NetMind Chain and Binance Smart Chain.

Users can utilize the cross-chain bridge to make cross-chain transfers. For example, a user may purchase NMT on Pancakeswap on the Binance Smart Chain and then, through the cross-chain bridge, transfer NMT to NetMind Chain to pay for model training or inference or for staking. Additionally, users can transfer their rewards from the NetMind Chain to the Binance Smart Chain for trading.

The cross-chain bridge will provide the project with a broader market and will give users more flexibility, fostering the development of the project.