Gonka Reward Mechanism Full Analysis: How to Become a Top AI Miner

Preface

In today's rapidly developing landscape of blockchain and artificial intelligence technologies, Gonka serves as an innovative decentralized AI infrastructure, providing miners with a platform to convert computing resources into real value. Unlike traditional Proof of Work (PoW) mechanisms, Gonka's PoW 2.0 mechanism utilizes miners' computing resources for AI model training and inference, achieving effective resource utilization. This article will delve into Gonka's reward mechanism, revealing the path to becoming a top AI miner.

1. Overview of the Reward Mechanism

Gonka's reward mechanism is designed based on three core principles:

1) Value Creation: Rewards miners who provide actual computing services for AI training and inference.

2) Long-term Incentives: Encourages miners to participate in network construction over the long term through a vesting mechanism.

3) Fair Distribution: Rewards are distributed based on computing contributions and quality scores.

Reward flow in the system architecture:

2. Reward Classification System

Gonka's reward mechanism is divided into three main categories, each with different sources and distribution logic:

2.1 Reward Classification Table

2.2 Work Coins — Direct Income Mechanism

Work Coins are the most direct source of income for miners, derived from user payments for AI inference and training services.

Income Calculation Formula:

Miner Work Coins = Total Task Fees × (Miner Computing Contribution / Total Computing Resources) × Quality Score

Characteristics:

1) Immediate acquisition, no waiting required.

2) Directly related to actual workload.

3) Driven by market demand, possessing real value.

Currently, the task fees are zero, so this portion of income has not been activated.

2.3 Reward Coins — Network Growth Incentives

Reward Coins are generated through the minting of new tokens, used to incentivize the long-term development of the network.

Distribution Mechanism:

Miner Reward Coins = Total Reward Pool × (Miner PoC Weight / Total Network PoC Weight)

Minting Rules:

1) Regular minting according to epochs.

2) Minting volume dynamically adjusted based on network activity.

3) Related to network TVL (Total Value Locked).

2.4 Top Miner Rewards — Excellence Performance Rewards

Top Miner Rewards are an elite reward mechanism within the Gonka network, specifically designed to provide additional incentives for miners who perform exceptionally. This mechanism aims to identify and reward top miners who provide high-quality services to the network, maintain stable operations, and demonstrate outstanding technical capabilities.

3. PoC Weight Calculation Mechanism

PoC (Proof of Computation) weight is the core metric for Gonka's reward distribution, reflecting the computing contributions of miners.

3.1 Sprint Competition Mechanism

Gonka employs a Sprint mechanism for regular computing competitions, where miners must complete designated AI computing tasks during each Sprint cycle.

3.2 PoC Weight Calculation Formula

Phase 1: Final Weight = EpochGroup.ValidationWeights[participant]

Phase 2: Final Weight = EpochGroup.ValidationWeights[participant] × Utilization Bonus × Coverage Bonus

In the first phase: Basic Bitcoin-style rewards (immediately implemented) sum the basic PoC weights of all participants (the number of valid nonces submitted), with each participant receiving a share of the fixed periodic reward equal to their percentage of the total network weight.

Example: If Participant A's PoC weight is 100, and the total PoC weight of the network is 1,000, then Participant A will receive 10% of the epoch reward (100/1,000 = 0.1).

In the second phase: The basic PoC weight distribution will be enhanced through additional reward mechanisms:

1) Utilization Bonus: MLNodes serving high-demand models will receive a reward multiplier.

2) Model Coverage Incentive: Participants supporting all governance models will receive additional rewards.

3.3 Utilization Reward Calculation

In the second phase, the system will apply utilization rewards at the MLNode level, with each MLNode bonus calculated as follows:

3.4 Model Diversity Reward

In the second phase, participants supporting all governance models will receive an additional reward multiplier.

1) Participants must allocate at least one MLNode for each governance model.

2) MLNodes must be operational and capable of handling inference requests.

3) The model allocation system will be used to verify coverage during the epoch formation process.

Coverage bonus calculation:

Benefits of model coverage incentives:

1) Prevents centralization around popular models.

2) Ensures network capacity for dedicated/emerging models.

3) Creates economic incentives for comprehensive model support.

4) Enhances overall network resilience and diversity.

4. Reward Vesting Mechanism

To incentivize miners to participate in network construction over the long term, Gonka has implemented a reward vesting mechanism.

4.1 Vesting Period Settings

4.2 Reward Release Timeline

180 Epochs Release Schedule (Mainnet)

Assuming each epoch is approximately 1 day:

4.3 Advantages of the Vesting Mechanism

For Miners:

1) Ensures long-term income stability.

2) Reduces the risk of short-term speculative behavior.

3) Enhances commitment to network participation.

For the Network:

1) Increases miner loyalty.

2) Enhances network stability.

3) Reduces token market volatility.

5. Gradual Halving Mechanism

Gonka adopts a gradual halving mechanism to control token inflation and incentivize early participants. This mechanism ensures the controllability of token supply and the long-term sustainability of the network by regularly reducing the amount of rewards distributed. The halving mechanism applies to the new minted rewards of Reward Coins, following a similar economic model to Bitcoin but incorporating the characteristics of the AI computing network.

5.1 Core Parameters of the Halving Mechanism

5.2 Halving Formula

Using an exponential decay formula:

Current Reward = Initial Reward × exp(Decay Rate × Epochs Passed)

Specific formula:

reward(epoch) = 285,000 × exp(-0.000475 × epoch)

5.3 Halving Schedule

5.4 Annual Halving Progress Schedule

5.5 Major Milestone Timeline

5.6 Inflation Control Effects

6. Top Miner Reward Mechanism

Gonka network implements a Top Miner Reward mechanism, aimed at incentivizing the best-performing participants in the network, ensuring high-quality AI computing services and network stability. This mechanism evaluates participants based on multiple metrics, including computing performance, network contribution, long-term participation, and reputation scores, providing additional token rewards to top-ranked miners.

6.1 Core Elements of the Top Miner Mechanism

6.2 Top Miner Level System

6.3 Qualification Criteria

The selection of top miners in Gonka is primarily based on the following criteria:

6.4 Reward Distribution Flowchart

Explanation of sorting priorities:

a) First Qualification Time: Rewards the "early bird," with miners who meet the standards first having the highest priority.

b) Initial Computing Power Weight: In cases where standards are met simultaneously, the stronger the computing power, the higher the priority.

c) Initial Registration Order: As a final tiebreaker, the earlier the registration, the higher the priority.

7. Comparison with Bitcoin

References:

About Gonka.ai

Gonka is a decentralized network aimed at providing efficient AI computing power, designed to maximize the utilization of global GPU computing resources to accomplish meaningful AI workloads. By eliminating centralized gatekeepers, Gonka offers developers and researchers permissionless access to computing resources while rewarding all participants with its native token GNK.

Gonka is incubated by the American AI developer Product Science Inc. The company was founded by industry veterans from Web 2, including former Snap Inc. core product director Libermans siblings, and successfully raised $18 million in 2023, with investors including OpenAI investor Coatue Management, Solana investor Slow Ventures, K 5, Insight, and Benchmark partners. Early contributors to the project include well-known leaders in the Web 2-Web 3 space such as 6 blocks, Hard Yaka, Gcore, and Bitfury.

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