Core Functions

$DGAI binds the DGrid.AI ecosystem together, fostering a self-sustaining cycle ofparticipation: Users pay $DGAI for inference, node operators earn $DGAI for contributions, and staking/governance ensure long-term network health. By embedding $DGAI into every interaction—from task submission to result verification—we create a decentralized AI economy where value flows directly between contributors and users, aligned with our core philosophy: "AI should serve the open network."

$DGAI powers every critical interaction in the DGrid.AI ecosystem, from inferencepayments to node accountability:

Inference Task Payments

Users pay $DGAI to access LLM inference services via DGrid Nodes. Feesare dynamically calculated based on:

• Compute Units (CU): A standardized measure of inference complexity (tied tomodel size, input tokens, and execution time).
• Latency: Adjustments for task speed (rewards for faster execution, minor penalties for delays).

Payments are processed automatically via the Bill Contract, a blockchain-deployed smart contract that deducts $DGAI from users and distributes funds to node operators—ensuring transparency and immutability.

Node Operator Rewards

$DGAI incentivizes community participation in network operations:

• DGrid Nodes: Earn $DGAI based on inference task contributions (e.g., CU processed, low latency, and uptime). Rewards are proportional to performance, with higher payouts for hosting large models (13B+ parameters) or serving high-priority requests.

Rewards are distributed weekly via the Bill Contract, with details archived to AI DA for auditability.

Staking Collateral

To ensure accountability, $DGAI staking is required for node participation, with tiered requirements based on node type:

• Standard DGrid Nodes
• High-Performance DGrid Nodes

Staked tokens act as collateral against misconduct (e.g., submitting fake inference results, downtime >72 hours). Malicious nodes face slashing (5–20% ofstaked $DGAI) or temporary jailing, enforced automatically via smart contracts.

Network Governance

$DGAI holders govern the evolution of DGrid.AI through on-chain voting, with proposals including:

• Adjusting fee structures (e.g., base CU pricing, latency penalties).
• Whitelisting new LLM models for network support.
• Upgrading core protocols (e.g., DGridRPC) or settlement rules.
• Allocating treasury funds for ecosystem growth (e.g., developer grants, security audits).

Voting power is proportional to staked $DGAI, ensuring decisions align with the interests of active network participants.