Computing Provider Income

Swan Chain is a decentralized network that connects computing providers with users requiring computational resources. To foster early network growth and incentivize CPs to join and contribute resources, a dual compensation mechanism has been designed:

1. Universal Basic Income (UBI): Provides CPs with a predictable token income when their resources are underutilized.

2. Paid Jobs: Offers market-priced compensation for computational tasks requested by users.

This mechanism ensures a fair and gradual distribution of tokens to providers, supporting the network's expansion until it reaches a critical mass of user-paid tasks. Importantly, the UBI distribution rate is influenced by the resource usage rate, and CPs earn market-based compensation when engaged in paid jobs.

Total Income

The total daily income $I(x)$for a computing provider on day $( x )$ comprises two components:

• UBI Income $y_{\text{UBI}}(x)$

• Paid Job Income $y_{\text{Paid}}(x)$

$$I(x) = y_{\text{UBI}}(x) + y_{\text{Paid}}(x)$$

Substituting the expressions for $y_{\text{UBI}}(x)$ and $y_{\text{Paid}}(x)$

$$I(x) = A \cdot x^{B} \cdot e^{-C x} \cdot (1 - u(x)) + P_{\text{market}}(x) \cdot u(x)$$

Resource Usage Rate Impact

• When $u(x) = 0$:

  • CP receives full UBI allocation.

  • No income from paid jobs.

• When $u(x) = 1$:

  • All resources are utilized by paid jobs.

  • CP receives full income from paid jobs.

  • No UBI allocation.

• Intermediate Values:

  • CP's income is a combination of UBI and paid job compensation, proportional to resource utilization.

Individual CP's UBI

To calculate the UBI for a single CP, we consider both the resource usage and completion rates of tasks. UBI allocation is conditional on sufficient resource contribution and performance metrics:

(1) UBI Workload Calculation

• Calculate the daily completion rate of a single ECP zk-task: $P_{\text{ECP}}$

• Calculate the completion rate of a single FCP sampling task: $P_{\text{FCP}}$

• Number of GPUs: $N_{\text{ECP}}(GPU_k)$ and GPU types.

• Calculate the total UBI workload:

$$UBI_{\text{total}} = UBI_{\text{ECP}} + UBI_{\text{FCP}}$$

$$UBI_{ECP}=\sum\limits_i (\sum\limits_k N_{ECP,i}(GPU_k) \times f_k)$$

$$UBI_{FCP}=\sum\limits_j (\sum\limits_k N_{FCP,j}(GPU_k) \times f_k) *W_{FCP}$$

(2) Calculating the UBI for a single CP:

As an ECP:

$$UBI_{\text{ECP},i}(x) = \frac{\sum\limits_k N_{\text{ECP},i}(GPU_k) \times f_k \times P_{\text{ECP},i}}{UBI_{\text{ECP}} + UBI_{\text{FCP}}} \times y_{\text{UBI}}(x)$$

As an FCP:

$$UBI_{FCP,i}(x)= \frac{\sum\limits_k N_{FCP,i}(GPU_k) \times f_k \times P_{FCP,i} \times W_{FCP} }{UBI_{ECP}+UBI_{FCP}} \times y_{\text{UBI}}(x)$$

---

Conditions for CP to Receive UBI

A CP must meet certain conditions to qualify for UBI:

1. Sufficient Collateral:

$$Collateral_{ECP}= \sum\limits_k N_{ECP}(GPU_k) \times C_{base} \times f_k$$

$$Collateral_{FCP}= \sum\limits_k N_{FCP}(GPU_k) \times C_{base} \times f_k \times W_{FCP}$$

Where:

• $N_{ECP}(GPU_k)$ represents the number of ECP for $GPU_k$

• $C_{\text{base}}$ is the base collateral, with an initial value of 3500 (this value will be dynamically adjusted based on the daily computing units of the entire network; for specific adjustment rules, check here)

• $N_{\text{FCP}}(\text{GPU}_k)$represents the number of $\text{GPU}_k$ in FCP

• $N_{\text{ECP}}(\text{GPU}_k)$ represents the number of $\text{GPU}_k$ in ECP.

• $W_{FCP}$ represents the FCP resource bonus ratio, currently set at a constant value of 1.2

NOTE: The value of $W_{FCP}$, 1.2, means that if the same configuration of servers is deployed for FCP, it will generate 20% more earnings than ECP.

1. Completion of Basic Test Tasks:

• FCP: Sampling task

• ECP: ZK task

1. GPU count and type are also factored into the UBI eligibility.

Exit Mechanism:

• CPs can exit by adjusting the setting of accepting tasks through their TaskType (ECP: 1, 2, 4; FCP: 3, 5).

• CPs can request to withdraw their collateral, but this requires a 7-day confirmation period to ensure settlement before the withdrawal is finalized (first requestWithdraw, followed by confirmRequest after 7 days).