Circulation Mechanism
$DGAI operates within a closed-loop economic system, ensuring value flows transparently between users, node operators, and the broader ecosystem. This mechanism is governed by smart contracts (e.g., Bill Contract) and enforced by DGrid Adaptor Nodes, eliminating intermediaries and aligning incentives with network health.
Core Cycle: From Payment to Reward
The circulation of $DGAI follows a structured flow, linking user demand for inference with node contributions:
- User Payment Initiation
When a user submits an inference request via a User Client, the process unfolds as:
- The request is routed to a DGrid Adaptor Node, which calculates the task fee using:
Cost = ComputeUnits(CU) × Base Price × (1 + Latency Penalty Factor)
INFO
- CU: A standardized metric of inference complexity (tied to model size, input tokens, and execution time).
- Base Price: Fixed per CU (adjustable via governance, initially 0.05 $DGAI).
- Latency Penalty Factor: 0–0.3 (minor adjustments for delays beyond target thresholds).
- The user’s $DGAI is escrowed in the Bill Contract (a blockchain-deployed smart contract) to guarantee payment upon task completion.
- Reward Distribution to Nodes
Post-inference (verified by GridVM and archived to DStorage), the escrowed $DGAI is distributed via the Bill Contract.
Recipients:
- DGrid Nodes: Compensation for executing inference tasks (proportional to CU, latency, and uptime)
- DGrid Adaptor Nodes: Rewards for gateway routing, settlement management, and validation (e.g., monitoring node stability).
- Treasury: Funds network maintenance (e.g., DStorage fees, security audits) and developer grants.
- Governance Pool: Incentives for $DGAI holders participating in voting (e.g., protocol upgrades, parameter adjustments).
- Staking & Lock-Up Requirements
To participate in the network, nodes must lock $DGAI as collateral, ensuring accountability.
- Governance & Fee Allocation
- Governance Pool: 5% of task payments (plus 10% of Treasury funds annually) are allocated to reward $DGAI holders who vote on proposals (e.g., adjusting Base Price, whitelisting new models).
- Network Fees: A 2% processing fee on all task payments is deducted upfront to cover smart contract gas costs and DStorage archiving, ensuring transaction efficiency.
- Slashing & Token Burn
Misconduct by nodes triggers automated penalties to protect network integrity:
Slashed Tokens: 5–20% of a node’s staked $DGAI is confiscated for malicious behavior (e.g., submitting fake inference results, downtime >72 hours).
Burn Mechanism: All slashed tokens are permanently burned, reducing the total $DGAI supply over time and enhancing scarcity.
Key Flows: Inflows & Outflows
| Inflows (Sources of $DGAI) | Outflows (Uses of $DGAI) |
|---|---|
| User payments for inference tasks | Inference fees paid by users |
| Weekly rewards for DGrid Nodes/Adaptor Nodes | Staking locks for node participation |
| Governance rewards for voting participants | Network fees (gas, DStorage) |
| Initial distribution (e.g., public sale, airdrops) | Slashed tokens (burned) |
This mechanism ensures $DGAI retains utility as both a medium of exchange and a governance tool, fostering a self-sustaining ecosystem where value is directly proportional to network participation. By linking payments to contributions and enforcing accountability via staking, $DGAI’s circulation strengthens the decentralization and resilience of DGrid.AI.