NetMind Power Update 2 - 2024.02.26


Here are some updates regarding the Evolving Burning System and Miner Emissions, reflecting our latest efforts to align with market dynamics and the value of NetMind Token (NMT).

1. Evolving Burning System

Adaptable to Market Dynamics:

There will be burn rate mechanisms to be responsive to market conditions and the price of NMT. This flexibility ensures that our approach remains relevant and effective in the ever-changing market landscape. The purpose of these burn rates is twofold: to provide immediate utility to our network users and to ensure the long-term stability and scarcity of NMT.

Different modes and features for using our machines:

  • Synchronous Training and Model Inference: In these modes, which require more stable machines, we have set a burn rate of 50%.
  • Asynchronous Training: Given its different computational demands, this mode has a higher burn rate of 80%. Since it allows a more unstable environment.
  • SSH feature: Depending on the market needs and NMT price, up to 100% NMT utilization fee will be burned.

2. Miner Emissions and Additional Burning

Miner emissions are linked to the value of computing resources and the NMT value. We use a calculated approach to determine the daily distribution of NMTs to miners, which 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.

  • 1. 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.

  • 2. Establishing a Cap:

    We've set 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 (274k now, 13.7k in year 10-30...)

    Average NMT price = past 7 days average NMT price

    B = Balancing coefficient

  • 3. 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.

  • 4. If total daily VC/B ≤ total daily NMT * average NMT price, the unissued NMT will be burned.

  • 5. 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.

We trust that these updates will clarify our approach towards a more responsive and balanced network economy. For detailed information on the evolving burn rates and miner emission strategies, please refer to the extended discussion in our online communities (Discord & Telegram). Your involvement is essential to our progress, and we are grateful for your continued support. Stay connected with us for further announcements and updates that will shape the future of the NetMind ecosystem.