Revenue Driven Token Issue

The most important feature of PublicAI tokenomics is the revenue-driven token issue. The teams are the fans that leverage real-world external revenue projects to back the tokens instead of traditional protocol income from the protocol ecosystem to avoid becoming a Ponzi scheme.

PublicAI Revenue Driven Token Issue Mechanism

AI Clients include AI firms and related research institutes such as OpenAI and Google, which need AI training data services.

The PublicAI platform has four pools: revenue pool, emission pool, stake pool, and reservation pool.

Revenue Pool stores AI Clients' payment for the data service including two business schemes: on-demand data service and existing dataset sales. The payment accepts fiats payment(USD, CNY, JAP, SGD, .etc), USDC/USDT stablecoins, and $PUBLIC.

Emission Pool stores the 50%(0.5B) total supply $PUBLIC tokens for community rewards which consists of two parts: 35% is used to reward the data contributors who upload or verify the data aligns with the data consensus. That part token emission is scheduled by an Emission Event. The remaining 15% is used to reward the stakers passively no matter whether the stakers make data contributions or not. The passive reward is 2.5% per year and lasts 6 years.

Emission Event

The emission process of the emission pool is a business contract or collaboration-wise instead of time-wise compared to most staking protocols. For each emission event, there should be an AI client to sign a business agreement or any new collaboration achieved. Assume the payment budget amount of the collaboration is X. and the real-time $PUBLIC price is P. The emitted $PUBLIC token amount Y could be simply calculated asY=X/P . The Y amount $PUBLIC tokens will be fairly rewarded to the community data contributors whose contributions are verified by the protocol consensus algorithm.

Stake Pool contains the $PUBLIC token staked by community contributors. The protocol requires them to stake $PUBLIC as collateral to back the quality of their contributions to avoid malicious behaviors such as randomly uploading irrelevant or AI-generated data to a data collection campaign or randomly arbitrary voting as validators. The stake amount is dynamically changed due to the task difficulties and the $PUBLIC token price. The stake will be slashed for malicious behaviors or if the protocol consensus occurrence is missing.

Reservation Pool contains the preservation $PUBLIC tokens which are bought back by the fiats or stablecoins from the revenue pool at the Buyback Event.

Buyback Event means using the revenue pool's fiats and stablecoins to buy $PUBLIC token from Dex or Cex and store it into the reservation pool for future utilities. The event is executed by Public DAO the unique decentralized governance organization to manage the protocol operations.