Economic Framework: The Yield Generation Engine

The core innovation is the conversion of hardware performance into tradable tokens and real yield for holders.

Fractional ownership

Users purchase tokens representing a percentage of a specific GPU or a diversified pool of hardware. This lowers the capital expenditure (CapEx) required to participate in the AI revolution.

Yield mechanics

Revenue is generated through the active utilization of hardware. The total yield for a specific token holder is distributed based on that holder's share of the total compute pool versus the actual cycles consumed by agents.

Y_{i} = \frac{s _{i}}{S} \times j \sum (c_{j} \times p)

Yield for token holder i: share of total compute pool vs cycles consumed.

Notation

Y_i: total yield for token holder i
s_i: shares held by the user
S: total circulating shares for that hardware cluster
c_j: individual GPU cycles consumed by an agent
p: price per cycle (protocol's internal marketplace)

Crucially, idle GPUs generate no revenue. This creates a “Proof of Utility” environment where token holders are incentivized to vote for or support agent deployments that maintain high hardware utilization rates.

Liquidity and trading

Because these tokens represent a share of a revenue generating asset, they can be traded on secondary markets. The value of a token is directly correlated to the Expected Utilization Rate of the underlying GPU.

Hardware & allocation →