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Auction Pricing

This guide explains Hokusai's simple pricing model for model access.

Overview​

Hokusai uses a straightforward pricing model that starts with minimal costs and can be adjusted through community governance. This approach ensures accessibility while allowing the community to respond to market conditions.

Running Example: Medical Image Analysis Model

Throughout this guide, we'll follow the pricing evolution of a medical image analysis model:

  • Initial launch: Minimal price to cover costs
  • Governance adjustments: Community-driven price changes
  • Market response: Usage patterns and feedback

Pricing Model​

Initial Price Setting​

Models start with a minimal base price that covers only essential costs:

# Minimal cost components
compute_cost = 0.001  # Per inference
storage_cost = 0.0005  # Per image
network_cost = 0.0005  # Per request

initial_price = compute_cost + storage_cost + network_cost
# initial_price = 0.002 USDC per request

This low initial price ensures:

  • Easy access for early adopters
  • Minimal barriers to entry
  • Market-driven usage patterns

Price Adjustments​

Prices can be adjusted through community governance:

  1. Proposal Process

    • Any community member can propose a price change
    • Proposals must include:
      • Current price
      • Proposed new price
      • Justification for change
      • Impact analysis

  2. Voting

    • Community members vote on proposals
    • Majority approval required
    • Minimum voting period: 7 days
    • Minimum participation threshold: 10% of total tokens

  3. Implementation

    • Approved changes take effect after voting period
    • Changes are implemented gradually over 30 days
    • Users are notified of upcoming changes

Example: Price Adjustment Proposal

# Current price
current_price = 0.002  # USDC per request

# Proposed new price
proposed_price = 0.003  # 50% increase

# Implementation over 30 days
daily_increase = (proposed_price - current_price) / 30
# daily_increase = 0.000033 USDC

Usage Tiers​

Basic Usage​

  • Pay-per-use pricing
  • Standard queue priority
  • Basic support

Batch Processing​

  • Volume-based discounts
  • Priority queue access
  • Enhanced support

Enterprise​

  • Custom pricing agreements
  • Guaranteed capacity
  • Dedicated support
  • SLA guarantees

Example: Hospital Batch Processing

# Batch processing for hospital
batch_size = 1000  # Daily batch
current_price = 0.002  # Current price
volume_discount = 0.25  # 25% volume discount

batch_price = current_price * batch_size * (1 - volume_discount)
# batch_price = 0.002 * 1000 * 0.75 = 1.5 USDC

Best Practices​

  1. Cost Management

    • Monitor usage patterns
    • Use batch processing when possible
    • Choose appropriate tier

  2. Governance Participation

    • Stay informed about price proposals
    • Vote on important changes
    • Provide feedback to the community

  3. Budget Planning

    • Set usage limits
    • Monitor spending
    • Plan for potential price changes

Troubleshooting​

Common Issues​

  1. Price Changes

    • Check governance proposals
    • Review implementation schedule
    • Plan for adjustments

  2. Usage Optimization

    • Use batch processing
    • Monitor queue status
    • Review tier options

  3. Budget Management

    • Set up alerts
    • Monitor usage
    • Review volume discounts

Next Steps​

For additional support, contact our Support Team or join our Community Forum.

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