🖱️Token cycle and computing ecology

The token cycle and computational ecology are key components of the blockchain network sys- tem, involving the mining mechanism, token re- duction, Gas Fee, Burn Fee, machine time rental orders, and inferred deployment orders. Among them, the mining mechanism is the core compo- nent of the blockchain network system, responsible for creating new tokens and allocating them to the participants who provide computing resources to the network. The mining mechanism in the Utility network uses the Proof of Computational Power consensus algorithm, which ties mining rewards to the computational power provided by the partici- pants. The token reduction mechanism is also par- ticularly important in order to maintain the scarcity and value of UNC [15, 20]. The reduction of tokens is used in the form of Burn Fee [16]. To take the ad- vantage of the computational ecology, a decentral- ized mechanism for leasing computing resources and generating inference deployment orders would allow users to lease idle computing resources for performing complex computational tasks and de- ploy AI models on computational nodes to accom- plish model training and inference tasks, respec- tively.

In summary, the token cycle and computa- tional ecology thus play a key role in the Utility network, working together through multiple mech- anisms to maintain the security, stability, and scala- bility of the network ecology and token economy. In the following, we will expand on these concepts and their applications in the Utility network, and finally show our model of token economics.