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Smart Contract Overview

Hokusai's smart contract system is modular, designed to support decentralized AI model development and tokenization. Here's a simplified flow:

[Data Contributor]
    ↓ submits data
[DeltaOneVerifier] → validates performance improvement
    ↓ confirms DeltaOne
[TokenManager] → mints model tokens
    ↓
[HokusaiAMM] → CRR bonding curve for buy/sell with USDC
    ↓
[API Usage] → UsageFeeRouter → InfrastructureReserve (costs)
                           → AMM reserve (profit) → price increases
    ↓
[ModelAccessController] → enforces API access control

Key Components​

  • Model-specific Hokusai tokens: Earned via performance gains
  • HokusaiParams: Per-model parameters including infrastructure accrual rate
  • DeltaOneVerifier: Validates performance improvement off-chain
  • TokenManager: Issues tokens, handles mint/burn logic, distributes rewards
  • HokusaiAMM: CRR bonding curve for buying/selling tokens with USDC
  • UsageFeeRouter: Routes API fees based on per-model infrastructure accrual rate
  • InfrastructureReserve: Holds accrued infrastructure costs, pays providers
  • ModelAccessController: Enforces access control and fee collection for model usage

ERC20 Implementation​

Token Standards​

  • Implements standard ERC20 interface
  • Additional functionality for model-specific features
  • Supports metadata for model information
interface IModelToken is IERC20 {
    function modelId() external view returns (bytes32);
    function performanceScore() external view returns (uint256);
    function lastImprovement() external view returns (uint256);
    function burnForAccess(uint256 amount) external;
}

Token Properties​

  • Name: Model-specific token name
  • Symbol: Unique identifier for the model
  • Decimals: 18 (standard)
  • Total Supply: Dynamic based on performance improvements
  • Transfer Restrictions: None (freely transferable)

Inflation Control​

Minting Rules​

  1. Performance-Based Minting

    • Only occurs when model performance improves
    • Amount based on improvement magnitude
    • Requires verification through DeltaOneVerifier

  2. Rate Limiting

    • Maximum minting rate per time period
    • Cooldown periods between improvements
    • Cap on total supply increase
struct MintingConfig {
    uint256 maxMintPerPeriod;
    uint256 cooldownPeriod;
    uint256 maxSupplyIncrease;
    uint256 currentPeriodMinted;
    uint256 lastMintTimestamp;
}

Supply Management​

  • Dynamic supply based on model performance
  • No fixed maximum supply
  • Controlled through governance parameters
  • Regular supply audits

Token Supply Mechanisms​

API Fee Value Accrual​

Model usage generates API fees that are split between infrastructure costs and profit:

  1. Fee Collection & Routing

    • API usage fees collected in USDC
    • Each model has configurable infrastructureAccrualBps (50-100%) in HokusaiParams
    • Infrastructure portion → InfrastructureReserve contract (for provider payments)
    • Profit portion (residual) → AMM reserve via UsageFeeRouter
    • Reserve increase raises token price (P = R / (w × S))

  2. Price Impact

    • Profit share deposited without minting tokens
    • Reserve grows, supply stays constant
    • Token holders benefit from genuine profit after infrastructure costs

Token Burning via AMM​

  1. Selling on AMM (After Day 7)

    • Sell tokens for USDC through bonding curve
    • Price impact based on sell amount
    • Slippage protection
    • Tokens are burned when sold, USDC returned

  2. Supply Reduction

    • Selling reduces both supply and reserves
    • Price adjusts according to CRR formula
    • Always-available liquidity

System Interaction​

Component Relationships​

[Model Registry]
    ↓
[Token Manager] ←→ [DeltaOne Verifier]
    ↓
[Bonding Curve] ←→ [Access Controller]
    ↓
[Governance System]

Key Interactions​

  1. Performance Verification

    • Verifier checks improvement
    • TokenManager mints rewards
    • Registry updates model status

  2. Access Control

    • AccessController verifies access rights
    • API fees collected and routed
    • AMM provides liquidity

  3. Governance

    • Parameter updates
    • Emergency controls
    • Protocol upgrades

Security Considerations​

Access Control​

  • Role-based permissions
  • Multi-signature requirements
  • Timelock for sensitive operations

Emergency Procedures​

  • Pause functionality
  • Emergency withdrawal
  • Circuit breaker implementation

Next Steps​

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

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