Analyzing the token economics of Aethir, how does it become the driving force of its DePIN computing system?

CN
1 year ago

Aethir is currently one of the largest distributed GPU computing ecosystems.

Author: Black Mario

Aethir is a DePIN computing network based on GPU computing power. The network supports users with idle computing resources to join as computing contributors, earn income from the network, and ensure the reasonable allocation of computing resources to demanders through on-chain systems, ensuring low-latency, high-quality, and continuous matching of computing resources.

In terms of scale, Aethir is currently one of the largest distributed GPU computing ecosystems. At present, it has over 4000 NVIDIA H100 GPUs as computing support, with 82% of them providing commercial services to the public. It is expected to further increase by 2000-3000 H100 GPUs in the future. These computing resources are accessed by enterprise users, Aethir partners, and individual users in a distributed manner, providing the highest quality GPU resources globally. As a result, Aethir has become one of the few distributed computing networks that can efficiently meet the most demanding AI customers.

Based on this, Aethir is launching Model as a Service (MaaS) for AI enterprises, deploying machine learning models to the enterprise end for user access. This allows AI users to select and deploy open source models in one stop. Aethir MaaS will help customers achieve efficient intelligent data analysis and decision-making, reducing the threshold for model deployment.

As a distributed ecosystem for Web3, Aethir's computing supply system is driven by an economy centered around the ATH token. This economic system not only ensures the further scaling of computing resources in the network but also serves as an important driving factor for the more reasonable allocation of computing resources.

Aethir's ATH token-centered economic system

Aethir itself uses the ATH token as the core of its economic system. This asset is not only an incentive asset for various roles in the Aethir ecosystem, but also a consumable asset for computing resources in the network and a guarantee asset for ensuring the efficiency of related roles and avoiding misconduct, balancing the interests of stakeholders in the short and long term, and helping the network trend towards growth. Therefore, in the Aethir ecosystem, all roles are related to the ATH token, and with the continuous expansion of business applications and computing resource demand in the Aethir ecosystem, a trend of currency tightening is emerging.

The defined use cases for the ATH token include:

  • Convenient payments - $ATH is used to pay for various services on the Aethir network, such as renting GPU resources for AI applications, cloud gaming, and other computing tasks.

  • Governance - $ATH holders have the right to vote on proposals and decisions that affect the future of the platform, participating in the governance of the Aethir network.

  • Staking - Users can stake their ATH tokens to support the security and operation of the network. In return, they can receive rewards in the form of additional ATH tokens.

  • Security and quality assurance - $ATH is used to incentivize network participants to maintain the security and quality of the services they provide.

We further break down the output and demand sides of the Aethir ecosystem.

1. Output side

Aethir is built on the Arbitrum chain and does not need to participate in the underlying security and consensus maintenance of the chain. Therefore, its incentive system lies in the roles of GPU contributors who join the network, earning ATH token income by contributing computing power to the Aethir network, including Aethir Edge computing device users.

Furthermore, to better achieve high-quality supply and allocation of computing power, the Aethir network has introduced three main roles, including:

  • Container - responsible for executing and rendering applications for the network, serving as the actual location of virtual cloud computing. In a more intuitive sense, we can understand it as an important driving role for computing power in the network (earning income from the network by working effectively).

  • Indexer - responsible for the allocation of network resources, based on the actual situation of Containers (including status, service deployment, resource requirements, latency, and service fees), to better match supply and demand and achieve dynamic self-adjustment of the network to ensure optimal operation.

  • Checker - a supervisory role in the network, monitoring and inspecting the services of Containers in real time, providing real-time feedback to Indexers on the processing capabilities, response time, and network latency of Containers, and earning token income from the network.

In addition, Staking users who help maintain network security are also part of the token output side.

2. Demand side

From within the system, various roles have almost all demand for ATH tokens.

  • Core system roles

Containers and Indexers are core roles in Aethir network for resource allocation and rendering. To prevent misconduct and ensure work effectiveness, these roles typically require staking a certain amount of ATH tokens to raise the potential economic alert threshold. They are supervised by Checkers and subject to penalties when necessary.

  • Staking

Staking users are an important part of maintaining network security. Participating in Staking will help further maintain network security. Currently, Aethir has launched two staking pools, one for gaming rendering and one for AI. The current staked ATH tokens amount to approximately 337 million, accounting for about 9% of the current circulation (current circulation is 3.37 billion). ATH tokens have only been listed on exchanges for just over a month, and the market's enthusiasm for staking ATH tokens is increasing, with the staking rate continuing to rise.

It is worth mentioning that Aethir recently launched a community reward program worth $50 million, including $20 million worth of ATH tokens, which will be distributed to Checker License (node operators) holders. The program has been announced. The incentive field link: https://massdrop.multisender.app/airdrop/rqng6ja15g

The remaining $30 million worth of ATH tokens will be distributed to the ATH-AI staking pool over 24 weeks (excluding the Gaming pool). The injection of new tokens will increase the rewards for users staking in the AI pool, further incentivizing participation and support for developing AI-driven applications on the Aethir network.

The newly allocated rewards for the ATH-AI pool can provide 15 times the base rewards and offer higher long-term staking user returns, ranging from 400% to 600%, depending on the amount of staked ATH tokens.

Please find the English translation below:

Please note that to qualify for the issuance, stakers need to stake ATH at https://stake.aethir.com. The ATH staking rewards will be distributed to stakers who have staked at least one week in advance every Thursday. Currently, the APR for the ATH-AI staking pool is over 300%, and the current staked amount of ATH tokens exceeds 700 million.

In addition to staking ATH tokens on Aethir's own staking platform (https://stake.aethir.com/dashboard), Aethir recently announced the launch of stATH on Sophon's ZK chain. Through this collaboration, users can stake on Sophon's staking platform and receive additional rewards in stATH, in addition to the native staking rewards from Aethir.

Therefore, from the perspective of ATH token stakers, participating in the ATH staking pool can yield substantial and multiple returns.

  • Compute Power Demanders

Starting from Aethir's core business sectors, ATH tokens are essential assets for acquiring computing resources and rendering services. Any user with a demand for computing power requires ATH tokens. Specifically, ATH is the standard exchange medium within Aethir, and any demand-side participant wishing to purchase processing power collaborates with node operators and compensates them with ATH. This is mainly reflected in three major business models, including AI applications, cloud computing, and virtualized computing, among others.

In fact, Aethir network itself has a series of excellent advantages in providing computing power.

Aethir is the largest H100 GPU computing cluster, a rare ecosystem that provides computing support for AI training. It can meet the demands of high-end AI applications and cloud computing, especially after the introduction of the MaaS system. Aethir's ecosystem is expected to experience rapid market expansion.

In the cloud gaming sector, Aethir network benefits from the multi-role architecture of Container, Indexer, and Checker, as well as its massive computing cluster. It has low cost, flexible scalability, and can meet the characteristics of real-time, instant high-burst, and continuous computing power supply. This enables it to provide efficient, low-latency GPU power flow and high-quality rendering services to global game developers and players, and is expected to bring AAA games without delay to low-end hardware devices in developing regions.

Additionally, Aethir network supports two computing resource supply modes, retail and wholesale, catering to users with large and continuous computing demands, as well as temporary users such as small rendering studios, providing a foundation for a wider range of demand.

Looking at fields such as AI applications, cloud computing, virtualized computing, and cloud gaming, these areas inherently have significant market gaps in computing power. Aethir's unique advantages are rapidly expanding its business in these areas and providing long-term services to potential demand sides. Currently, Aether has established deep partnerships with several large cloud gaming companies, game developers, and well-known international telecommunications companies. According to Aethir's latest report, the platform's revenue last year was $36 million, and it estimates a long-term potential market size of over $30 billion.

The advantages of the Aethir network itself are providing a foundation for its extensive market expansion, which will further reflect in the demand side of the ATH token, continuously building up its value.

In addition to the aforementioned demand side, as community users, stakeholders with a tendency to maintain the community are more inclined to participate in governance through the ATH token, which will also accelerate the market demand for the ATH token.

From a supply and demand perspective, the output side in the Aethir network is often related to the market demand side. For example, the incentives received by roles such as Containers, Indexers, Checkers, and GPU contributors in the network represent the presence of demand-side recipients. Staking users, due to continuous incentives and the potential increase in the value of ATH tokens, are expected to further expand the scale of their staked tokens. Therefore, the continuous output of ATH tokens in the network may signify the overall growth in value.

The value growth flywheel of the Aethir ecosystem

The ATH-centered economic system is driving the Aethir ecosystem towards positive value growth.

Currently, the Aethir ecosystem is experiencing rapid expansion in the market and business sectors, attracting more and more GPU computing contributors, DePIN nodes, and roles such as Containers, Indexers, and Checkers to join the network. In addition to the continuous expansion of the GPU cluster scale, the contributor roles are also showing a trend of scaling expansion. For example, the number of Checker roles joining the network has exceeded 74,000. This is driving the growth of the Aethir ecosystem in the scale of the GPU cluster and the improvement of service quality, and will bring more demand sides of computing power into the Aethir network.

From the token perspective, the expansion of the Aethir network in the market size and demand side will continuously accelerate the demand for ATH tokens, reduce their potential market circulation, and drive the continuous increase in the value of ATH tokens, building a more solid value base.

As the value of the ATH token grows, investors, Aethir users, and various stakeholders within the network will have more confidence in the long-term development of the Aethir ecosystem due to higher investment returns and increased income value from the network. This will attract more users to participate in the construction of the Aethir ecosystem, including GPU computing contributors, network service providers, staking users, and others, further driving the improvement of the ecosystem in resource scale and service quality, and accelerating the cooperation and expansion of the overall ecosystem business. Currently, Aethir has become the project with the highest FDV in the DePIN track.

With the launch and listing of the ATH token on trading platforms, the value flywheel system of the Aethir ecosystem is accelerating, and all participants will enjoy the dividends of the Aethir GPU DePIN system.

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