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Tokenomics Overview

Hokusai's tokenomics are designed to align incentives across data suppliers, model developers, and users. Tokens are minted to rewards data contribution that improves the model performance. Usage of the model requires payments and the supply is reduced via a buyback mechanism.

Important Concepts:

  • DeltaOne Token Inflation:

    • Reward data suppliers for contributing datasets that improve accuracy.
    • Minted upon verified 1 percentage point improvements in model performance.
    • Represent tangible contributions to AI model efficacy.

  • Bonding Curve:

    • Determines token pricing based on supply and demand dynamics.
    • Encourages early participation and reflects the value of contributions.

  • Token Burning:

    • Tokens are burned when users access models, creating a deflationary mechanism.

  • Auctions:

    • Regular auctions facilitate fair pricing for model access.

Explore the detailed mechanics and participate in the ecosystem through the subsequent sections.