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 Income

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 $N_{\text{CP}}(GPU_k)$ and GPU types.

• Calculate the total UBI workload:

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

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

$$UBI_{\text{FCP}} = \sum\limits_j \left( \sum\limits_k N_{\text{FCP},j}(GPU_k) \times f_k \right) \times P_{\text{FCP},j}$$

(2) Calculating the UBI for a single CP:

As an ECP:

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

As an FCP:

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

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Conditions for CP to Receive UBI

A CP must meet certain conditions to qualify for UBI:

1. Sufficient Collateral:

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

Where:

• $N_{\text{CP}}(GPU_k)$ is the number of GPUs held by CP.

• $C_{\text{base}}$ is the base collateral.

• $f_k$ is the revenue growth factor

2. Completion of Basic Test Tasks:

• FCP: Sampling task

• ECP: ZK task

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