7. NetMind Token
NetMind Token (NMT) is the native utility token of the NetMind Chain. The total supply of NMT is 147,571,163 tokens. All tokens were locked in a smart contract, which will gradually unlock the tokens according to the allocation 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.
We upgraded our tokenomics starting April 16, 2024. The previous version of tokenomics was implemented for one year and released 34,571,163 NMT into circulating. If you need to read it, please click on the link:
7.1 Allocation Plan
In this section, we quantify the allocation plan in percentages and amounts.
Based on the old version of tokenomics, 34,571,163 NMT was allocated to circulation in the first year (from April 16, 2023, to April 15, 2024).
Starting April 16th, 2024, 113,000,000 NMT will be issued over the next 10 years under new tokenomics framework.
1. 62.5 million NMT (55.31% of new issuance; 42.35% of new total supply) is allocated as the Mining Rewards for providers of computational power to the network, used for GPU rental, training and inference.
For the first 2 years (after 4/16/24), 20 million NMT will be distributed.
For the next 2 years, 15 million NMT will be distributed.
For the next 2 years, 10 million NMT will be distributed.
For the next 2 years, 7.5 million NMT will be distributed.
In the final 2 years, 5 million NMT will be distributed.
This includes a revised portion for early GPU contributors now set at 5 million tokens, which will begin to vest on April 16, 2026, and will be gradually released over a four-year period.
2. 16.5 million NMT (14.60% of new issuance; 11.18% of new total supply) is allocated as the Staking Reward for users who participate in staking and providing liquidity.
For the first 2 years (after 4/16/24), 4 million NMT will be distributed.
For the next 2 years, 3.5 million NMT will be distributed.
For the next 2 years, 3 million NMT will be distributed.
For the next 2 years, 3 million NMT will be distributed.
In the final 2 years, 3 million NMT will be distributed.
3. 16.5 million NMT (14.60% of new issuance; 11.18% of new total supply) is allocated as the Ecosystem Growth Fund dedicated to expanding and enriching the ecosystem.
For the first 2 years (after 4/16/24), 4.5 million NMT will be distributed.
For the next 2 years, 4 million NMT will be distributed.
For the next 2 years, 3.5 million NMT will be distributed.
For the next 2 years, 2.5 million NMT will be distributed.
In the final 2 years, 2 million NMT will be distributed.
4. 7.5 million NMT (6.64% of new issuance; 5.08% of new total supply) is reserved for strategic investors & advisors, which is a new category with 7,500,000 tokens aimed at reinforcing relationships with key strategic partners.
For the first half of the year (after 4/16/24), 3 million NMT will be distributed.
For the next 4 and half years, 4.5 million will be distributed.
5. 10 million NMT (8.85% of new issuance; 6.78% of new total supply) is allocated as the Team Fund reserved for the NetMind technical team.
For the first half of the year (after 4/16/24), no NMT will be distributed.
For the next 4 and half years, 6 million will be distributed.
In the final 5 years, 4 million NMT will be distributed.
The duration unit "year" in the reward rules is calculated as 365 days, regardless of leap years.
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 Mining 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).
Miner Emissions
Miner emissions are determined through a calculated approach, linking the value of computing resources to the NMT value. The daily distribution of NMTs to miners is based on the minimum value between the total computing resources' value and the maximum NMT value, divided by the average NMT price over the past 7 days. This ensures fairness and adapts to market conditions.
Linking to Computing Resources and NMT Value:
The emissions depend on two primary factors: the total value of the computing resources in the network and the current value of NMT.
Establishing a Cap:
There is a cap to maintain a balanced distribution of rewards. This is calculated by comparing the total value of computing resources (as per a specific parameter) with the total value of the maximum NMT that could be issued to miners.
Total daily VC = total value of computing resources
Total daily NMT = Maximum daily issued NMT for GPU contributors
Average NMT price = past 7 days average NMT price
B = Balancing coefficient
Minimum Value Determination:
Each day, the total number of NMT issued to all miners is equal to
*Starting on 2024-2-24, the algorithm is activated.
If total daily VC/B total daily NMT * average NMT price, the unissued NMT will stay in the mining reward pool, to be distributed after 10 years.
Individual GPU Reward:
Each GPU has a weight, wi, which represents its computational power or contribution value; a penalty coefficient, pi, which might be applied due to various factors (like uptime, vacant time, reliability, internet speed etc.). Then for machine i, its reward will be:
The reward for each machine is then proportionate to its effective weight compared to the total, factoring in the daily NMT distribution cap.
7.2.2 Computational Power Utilization Fee
Users who rent GPU, 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 rent, 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 returned to contract without increasing the circulating supply.
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 returned to contract without increasing the circulating supply.
SSH feature: Depending on the market needs and NMT price, up to 100% NMT utilization fee will be returned to contract without increasing the circulating supply.
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 Mining 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 Mining Reward 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 or provide liquidity to official trading pairs and receive NMT rewards based on the distribution plan.
Staking Rewards Structure:
Flexible (including staking and liquidity), long-term, and master node staking options remain funded from the staking rewards pool, with detailed allocation adjustments to be announced by April 30th, 2024.
10% of the rewards go to the top 21 Master Node operators.
90% of the rewards go to staking users who have staked their tokens against any of the 21 Master Nodes, or provided liquidity to official trading pairs. Staking users receive daily rewards from the staking pool based on weighted participation. The weighting coefficients are as follows:
Long-term Staking: 4
Flexible Staking: 1
Flexible Liquidity: 2 (When calculating rewards, the NMT and USDC with equivalent value in the trading pair are both considered liquidity.)
7.3 Master Nodes and Elections
As mentioned in this white paper, NetMind Chain has 21 Master Nodes which other Mind Nodes then elect through staking.
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.
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