Tokenomics Plan, Stake and Rewards

8.1 Utility of tokens

Within the PrivAI ecosystem, our native tokens are not just a medium for paying transaction fees; they are the cornerstone of our financial ecosystem. Sellers, GPU providers, freelancers, AI builders receive payments in these tokens, integrating them deeply into the platform's operations.

While we maintain the flexibility for users to opt for fiat currency payments, those choosing to utilize our native tokens will benefit from a reduced fee structure. This incentivized approach not only fosters the use of our tokens, enhancing their utility and circulation within the ecosystem, but also offers a cost-effective solution for our users.

PrivAI will also integrate off-ramp services directly into the platform. This will enable users to effortlessly convert their tokens into local currencies, right within the PrivAI environment.

Token Utility

Reward

• Early Bird Rewards

• Feedback and Earn

• Engagement Rewards

Payment

• AI builders use tokens to pay for platform services and rent compute resources.

• Labelers and compute providers receive payments in tokens.

• AI project owners receive funds in PrivAI tokens (AxB).

Staking

• Staking tokens allows users to access the platform for free.

• Staking enables the use of the auto-provisioning feature.

• Users can earn tokens from new AI projects launched on the PrivAI launchpad.

• Staking is required to launch a project on the PrivAI launchpad.

• Users can earn retroactive tokens.

• Labelers staking tokens ensures the delivery of high-quality, cost-effective AI training data.

To reward the community for different missions

8.2 Tokenomics plan:

Total supply: 1B tokens

P/S:

1. Reserves are allocated for new investors.

2. Ecosystem growth funds are dedicated to marketing, incubation, and community salaries.

Payment Options and Token Buy-Back Mechanism

• Fiat Payment Support: While PrivAI is token-centric, customers can still pay using fiat if they prefer. When a customer pays in fiat, PrivAI will handle the backend process to convert fiat payments into tokens.

• Token Buy-Back and Burn: To maintain token value and incentivize token holders, PrivAI will allocate at least 25% of its monthly profit to buy back tokens from the market and burn them. This mechanism reduces the circulating supply of tokens, increasing scarcity and benefiting the overall token economy.

8.3 Stake and rewards:

a) Stake programs:

Stake tokens to earn below rewards and benefits:

• Earn tokens of new AI Projects when they launch on our launchpad

• Stake to be able to launch on our launchpad

• Users can un-stake and withdraw anytime after 1 month; if withdrawn within the 1-month period, a 5% penalty will be applied.

• Earn retroactive tokens as community rewards.

• Discount for all of our platform services

• Access to the decentralized dataset pool

Rules: minimum staking period: 1mon.

Penalty 5% if withdraw before the period.

Details:

Staking Tiers

Users can stake AxB tokens equivalent to the following USDT values to access discounts and earn rewards:

1. Tier 1: min $100 USDT

2. • Discounts:

   • 0 platform fee

   • Rewards: Eligible for monthly token rewards.

3. Tier 2: from $500 USDT above

4. • Discounts:

   • 0 platform fee

   • Limited Access to the decentralized dataset pool (a portion of dataset)

   • Rewards: Eligible for high monthly token rewards.

5. Tier 3: from 3000 USD above

• 0 platform fee

• Full access to the decentralized dataset pool

• Rewards: Eligible for monthly token rewards

a) How to calculate Token Rewards for the “Reward/Communities” allocation group (15% of the total supply)

Monthly Vesting

Each month, a fixed number of AxB tokens will be vested for community rewards. This belongs to the group “reward/communities” allocation. The distribution of these tokens is as follows:

• 20%: Distributed to staked users

• 70%: allocated to paid users (who use our platform and pay for it. For more info check our pricing table on our website)

• 10%: Allocated for reward campaigns (e.g., feedback, engagement).

Distribution Based on Staking Amount

The portion of tokens allocated to staked users will be distributed based on the amount of AxB tokens staked as well as the amount of AxB tokens paid for the service.

Example of Reward Distribution

Monthly Reward Pool: 1,000,000 AxB tokens

• Staking Rewards (20% of total): 200,000 AxB tokens

• Distributed proportionally based on the amount staked

• For example, if User A has staked 500 AxB tokens out of a total of 100,000 AxB tokens staked, User A will receive (500/100,000) * 200,000 = 1000 AxB tokens as monthly staking rewards

• Campaign Rewards (10% of total): 100,000 AxB tokens

• Distributed based on points earned through various campaigns.

• For example, if User B earns 100 points out of a total of 10,000 points awarded for the month, User B will receive (100/10,000) * 100,000 = 1000 AxB tokens as a monthly community rewards

• Paid users: (70% of total): 700,000 AxB tokens

• Distributed proportionally based on the amount paid (a sum of the whole organization’s amount)

• For example, if user C created an account for his organization with 10 members, paid for the 590 USD subscription package. The total revenue of the ecosystem that mon is 100k USD. Then user C will receive : (590/100000)*700000 = 4130 tokens as monthly premium rewards

b) Reward programs:

In our commitment to foster a thriving and engaged community, we've designed a suite of reward programs aimed at incentivizing participation, contribution, and engagement across our ecosystem. These programs are structured to run continuously, providing ongoing opportunities for our community members to earn rewards, until the allocated pool of reward tokens is fully distributed.

Each program is tailored to different community segments, ensuring diverse ways to contribute and benefit from our growing ecosystem.

There are 3 reward programs:

• Early Bird Rewards

• Referral and Earn

• Engagement Rewards

Retroactive tokens distribution scheme

Reward Program	Timeline	Description	Activity	Number of scores per 1 activity	How it works	Who is it for?	Note
Early Birds	30 Mar - 30 Sept (2024)	Benefits include a free first-month trial, Retroactive tokens (will be automatically distributed to your wallet after your account has been created and verified), and the flexibility to use tokens within the platform or convert them to fiat.	Registration and Verification	4 scores	Early adopters (the first 6 mons) are rewarded for their early engagement with our platform. Register, verify your account and use our ecosystem which includes data engines & MLOps tools for your AI model development, or rent or lease GPUs/CPUs or trade models or just register to our crowdsourcing pool to join and earn from suitable AI data projects. You will not only enjoy a free trial but will also be eligible for retroactive tokens.	AI developers Model sellers/buyers Compute providers Crowdsourcing freelancers	* Active users will get more scores than inactive users who just create an account then leave it inactive. * Your acc needs to be fully verified. * Make sure you choose the right role (AI builder/Compute provider/ Freelancer/ etc)
Engagement Rewards	Feb 2024 - forever	Engage with us on all of our social channels and forums to earn tokens! Like, share, comment, chat, cast a vote for our programs or review/post about our products (positive sentiment) on your social channels to get rewarded.	Following/joining our Social and Forum Channels	1. Linkedin: 5 scores 2. X (Twitter): 5 scores 3. Discord: 5 scores 4. Telegram: 4 scores 5. Facebook: 2 scores 6. Reddit: 4 scores 7. Producthunt: 3 scores 8. Youtube: 4 scores	Check our Linktree here to see all channels: https://linktr.ee/PrivAI	Anyone	List of our channels: 1. Linkedin 2. X (Twitter) 3. Discord 4. Telegram 5. Facebook 6. Reddit 7. Discourse 8. Producthunt 9. Hackernews
Engagement Rewards	Feb 2024 - forever	Engage with us on all of our social channels and forums to earn tokens! Like, share, comment, chat, cast a vote for our programs or review/post about our products (positive sentiment) on your social channels to get rewarded.	Commenting on social posts	4 scores/post/channel	Comment on our social posts on all social channels	Anyone	Each post in each channel is awarded separately, so the more you interact across different channels, the more points you will earn.
Engagement Rewards	Feb 2024 - forever	Engage with us on all of our social channels and forums to earn tokens! Like, share, comment, chat, cast a vote for our programs or review/post about our products (positive sentiment) on your social channels to get rewarded.	Liking on social Posts	4 scores /post/channel	Like our posts on our social channels	Anyone	Each post in each channel is awarded separately, so the more you interact across different channels, the more points you will earn.
Engagement Rewards	Feb 2024 - forever	Engage with us on all of our social channels and forums to earn tokens! Like, share, comment, chat, cast a vote for our programs or review/post about our products (positive sentiment) on your social channels to get rewarded.	Sharing our Posts	3 scores /post/channel	Share our posts to your network	Anyone	Each post in each channel is awarded separately, so the more you interact across different channels, the more points you will earn.
Engagement Rewards	Feb 2024 - forever	Engage with us on all of our social channels and forums to earn tokens! Like, share, comment, chat, cast a vote for our programs or review/post about our products (positive sentiment) on your social channels to get rewarded.	Tagging Friends in Posts	3 scores /post/channel	Tag your friends to our posts	Anyone	Each post in each channel is awarded separately, so the more you interact across different channels, the more points you will earn.
Engagement Rewards	Feb 2024 - forever	Engage with us on all of our social channels and forums to earn tokens! Like, share, comment, chat, cast a vote for our programs or review/post about our products (positive sentiment) on your social channels to get rewarded.	Voting	2 scores/voting	Cast a vote whenever there is a proposal on our forum	Anyone	Cast your votes for proposals created by the community for product improvements
Engagement Rewards	Feb 2024 - forever	Engage with us on all of our social channels and forums to earn tokens! Like, share, comment, chat, cast a vote for our programs or review/post about our products (positive sentiment) on your social channels to get rewarded.	Participating in Forums	3 scores/engagement	Engage in our forums/community channels such as Discord	Anyone	Including Discourse, Discord, Telegram, Reddit, Hacker News, Product Hunt)
Engagement Rewards	Feb 2024 - forever	Engage with us on all of our social channels and forums to earn tokens! Like, share, comment, chat, cast a vote for our programs or review/post about our products (positive sentiment) on your social channels to get rewarded.	Textual Review and Promotion about our platform on Your Channels (Demonstrating Platform Features with Actual Processes)	10 scores/post	Write a review highlighting specific features and processes of our platform. Post it on your blog, social media, or any channel where you have influence. Your content should provide a clear, practical demo of our platform in action, helping others understand its value.	AI developers Model sellers/buyers Compute providers	Your reviews/promotion need to be positive and authentic
Engagement Rewards	Feb 2024 - forever	Engage with us on all of our social channels and forums to earn tokens! Like, share, comment, chat, cast a vote for our programs or review/post about our products (positive sentiment) on your social channels to get rewarded.	Video Review and Promotion about our platform on Your Channels (Demonstrating Platform Features with Actual Processes)	40 scores/video post (minimum 100 views)	Record a video of your screen as you navigate and utilize our platform. Focus on key features and processes that you find beneficial. Share this video on your channel, whether it's YouTube, social media, or any other content platform, to give your audience an insider’s view. It's better to showcase it as if you're sharing your personal experience, rather than promoting the platform.	AI developers Model sellers/buyers Compute providers	* Some video-based channels such as X (Twitter), Youtube, Facebook, Tiktok. * The greater the number of viewers you have, the higher the scores you will receive. * Your reviews/promotion need to be positive and authentic
Referral and Earn	30 Mar 2024 - forever	Earn tokens by referring new users to our platform. Navigate to your dashboard to generate a unique referral link, share it within your network, and receive tokens for each successful registration, enhancing our community growth.	Inviting Others to register our ecosystem Through Your Personalized Dashboard Link	10 scores/referral	Once you've created an account on our platform, visit your dashboard to find your personalized referral link. Send this link to invite your friends to join if they would benefit from our platform	AI developers Model sellers/buyers Compute providers Crowdsourcing freelancers

Your token earnings = (Your total score / Sum of all scores of all participants during a period) * Total rewarding tokens allocated for these campaigns for the period

Retroactive tokens are distributed monthly, starting from the TGE date

For example: in April, there are 450k tokens avail for distribution to reward the community for these campaigns, if you earn 100 scores in April and the total scores for all participants in April were 5,000; then:

b) Allocation of Ecosystem Growth: Supporting Our Community and Ecosystem (15% of the total supply)

To foster sustainable growth and reward valuable contributions, we allocate 15% of the total token supply for ecosystem growth. This allocation is divided into two main categories:

1. Grants and Funding for Outstanding Projects (35%)

2. Open-Source Contributor Rewards (65%)

This section outlines the mechanisms for allocating these tokens, including how contributions are rewarded, thresholds to ensure fairness, and strategies for maintaining reserves.

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1. Grants and Funding for Outstanding Projects (35%)

We dedicate 35% of the ecosystem growth allocation to fund innovative and impactful projects built on top of our ecosystem. These grants are designed to:

• Support developers creating tools, applications, or integrations that expand the ecosystem’s functionality.

• Encourage research and development of new use cases for the platform.

• Drive education, community growth, and user adoption through hackathons, tutorials, and outreach efforts.

Grant Allocation Process:

• Proposal Submission: Developers and teams submit detailed proposals outlining their project’s objectives, technical roadmap, and expected impact.

• Community Voting: Token holders vote on the proposals to prioritize projects aligned with the ecosystem’s goals.

• Milestone-Based Distribution: Grants are disbursed in phases, tied to the achievement of predefined milestones to ensure accountability and progress.

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2. Open-Source Contributor Rewards (65%)

We allocate 65% of the ecosystem growth tokens to reward contributors for their efforts in maintaining and improving the open-source ecosystem. This ensures that contributors are fairly compensated for their time and expertise while fostering innovation and collaboration.

Point-Based Reward System:

To distribute tokens fairly, we use a point system that assigns value to different types of contributions based on their impact, effort, and complexity.

Contribution Types and Ratios:

The contributions are categorized and weighted as follows:

Contribution Type	Ratio (%)	Point Breakdown	Column 4	Column 5	Column 6
Bug Fixes	25%	Minor Bug Fix: 1-2 points	Medium Bug Fix: 3-5 points	Major Bug Fix: 6-8 points	Critical Bug Fix: 9-10 points
Feature Development	40%	Simple Feature: 2-4 points	Medium Feature: 5-7 points	Complex Feature: 8-10 points
Code Optimization	15%	Minor Optimization: 1-2 points	Medium Optimization: 3-5 points	Major Optimization: 6-8 points
Bug Reporting	10%	Minor Bug: 1-2 points	Medium Bug: 3-5 points	Critical Bug: 6-8 points	Exploit Discovery: 9-10 points
Test Contributions	10%	Basic Testing: 2-4 points	Test Case Development: 5-7 points

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3. Monthly Token Distribution

Every month, a fixed number of tokens from the open-source contributor pool are unlocked and distributed based on the total points earned by contributors during that period.

Fairness Mechanism: Threshold for Token Distribution

To prevent scenarios where only a small number of contributors claim all tokens with minimal effort, we implement a threshold system:

• Minimum Points Threshold: If the total points earned by all contributors in a given month are less than 500 points, a reduced ratio of 50% of the monthly token allocation will be distributed. The remaining tokens will be added to a community reserve fund.

• • Reasoning: A threshold of 500 points ensures that contributions reach a baseline level of activity and effort. Distributing only 50% of the allocation incentivizes more participation in subsequent months while maintaining fairness.

Point-to-Token Calculation:

Tokens are distributed proportionally based on the points earned:

Example Calculation:

• Monthly Token Pool: 10,000 tokens (for detailed monthly vesting, please check Open link

• Total Contributor Points: 1,000 points

• Contributor A’s Points: 100 points → He earns: 100*10000/1000 tokens (equal to 1k tokens)

If the total points were below the threshold (e.g., 400 points):

• Only 50% of the monthly token pool (5,000 tokens) would be distributed.

• Contributor A’s Token Share with reduced distribution. → He earns: 100*5000/400 tokens (equal to 1250 tokens)

Token buyback and burn:

In our commitment to building a sustainable business, we prioritize reinvesting our revenue to expand our tech team, develop new functionalities, and broaden our product offerings. As we achieve profitability, our plan includes allocating at least 25% of our profits towards a token buyback and burn initiative, reinforcing our dedication to enhancing token value and fostering long-term growth.