Token White Paper
Introduction
Planck Network is a company building an innovative solution to help share, store, and enhance computational power in a decentralized way. The blockchain ecosystem is built on its blockchain layer, and able to transform idle computing power into valuable assets through cryptocurrency.
Planck Network protocol connects users with the excess computational capacity to AI developers, democratizing advanced computing and fostering economic opportunities in the digital realm. The network's marketplace provides access to leading, open-source AI models, enabling the creation of AI-driven applications at a fraction of the cost. This not only spurs innovation but also expands participation in the AI economy, making it easier for new advancements in the rapidly emerging artificial intelligence sector.
Ecosystem Core Products:
1. Decentralized Cloud Computing Network
The decentralized edge computing network provisions computational resources from hardware devices connected to the network through the Planck mining client. This software tethers the device to the network as a client, allows mining of network rewards through provisioning both CPU and GPU computation power, and allows participation in network governance. Planck Network refers to this contributor network as the supply side of the ecosystem.
2. Data and Application Marketplace
The application and development layer comprises the demand side for computational resources created by the network. The Planck Network marketplace allows easy access to open-source machine learning models through API integrations. Computational resource access is simplified for developers as well, allowing streamlined API calls that consume computational resources without the friction of pairing suppliers and consumers.
3. Governance Protocol
While Planck Network has no plans from inception to become a fully decentralized blockchain ecosystem, governance and a portal to provide users of all types are critical for Planck Network. Such a portal will allow participants to vote on adjustments to core aspects of the Planck Network experience to inhibit user experience issues and provide a designated, viable path for contributors to implement change.
The governance protocol layer will integrate reputation management components to help provide extra weight to all distributed voting power in the governance protocol, helping to incentivize the most beneficial behavior by stakeholders for the overall health of the Planck Network ecosystem.
4. Planck Network Application Layer
Planck Network operates as an EVM-compatible, Layer 1 blockchain. This foundational layer built on the novel Proof-of-Useful-Work (PoUW) consensus mechanism creates a builder-focused landscape for developers to access open-source, machine-learning models and computational resources to build decentralized applications. Planck Network will launch several native applications on the blockchain including a decentralized exchange, decentralized finance protocols, ecosystem launchpad, and more.
Economic Agents
Economic Profile | Ecosystem Design | Value Incentives |
Individual Miner | Individuals who are helping lend minimal amounts of unused computational power from idle devices to create a small but reliable passive income stream. This income can also be spent on other features within the Planck Network if the ‘Miner’ in question wants to participate in the economy in other ways. |
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Enterprise Miner
| Larger operations or server farms can become cloud computer power providers on the supply side as well, with larger rewards and more diverse types of cloud computing such as CPU, GPU, and even TPU. This functions in a similar way to the ‘Individual Miner’ role in the ecosystem. |
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Application Developers | Developers are motivated by the machine learning sandbox provided by Planck Network. Having the compute power, SDK, data provision, and a marketplace to bring in adoption gives potential application builders a viable and vertically integrated path to create their own AI applications. |
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Research Institutions | Researchers or students can find ample ways to work within the Planck Network ecosystem, which in turn provides academia a safe and easy place to test theories and build innovative new use cases for machine learning. |
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Application End Users | Users of applications built within the Planck Network ecosystem will be vital. These users are motivated by the availability of innovative and genuinely useful machine-learning applications in the marketplace. |
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Traders | Traders are a given for all blockchain startups creating their own digital assets. Traders will help create volume by speculating about price movement in the token, which is unavoidable. |
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Investors | Retail investors are focused on investing in digital assets behind innovative technology companies, although the type of investor varies considerably. From speculative investors looking for more short-term swing trading opportunities to machine learning aficionados looking for viable investments to add to their portfolios, investors are mostly motivated by a desire to correctly predict trends and earn returns. |
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Token Overview
The $PLN token is the primary driver of value across the Planck Network. While the token facilitates transactions and security across the network, being used as gas, it also creates a strong accountability and incentive system for the edge computing network.
$PLN is also incorporated into the application layer on the platform, being used by dApps built on the network and benefiting from network effects across the entire ecosystem.
The design of the token economy focuses on several key goals:
Security
Planck Network utilizes a novel Proof-of-Useful-Work (PoUW) consensus mechanism, tied directly into node operation through secure off-chain oracles. The system grants mining rewards to the network’s greatest contributors who also serve to secure the protocol.
Interoperability
The $PLN token is integrated into all aspects of the developer ecosystem. While serving as a payment medium, rewards mechanism, access model, and powering the accountability system, the token allows full access across all dApps and protocols built on the network.
Accountability and Incentives
While other edge computing networks use linear systems that incorporate several inefficiencies, Planck Network uses a reputational system to encourage consistent node connectivity on the supply-side, while incentivizing consumption on the demand side, offering discounts to application developers that contribute the most value to the ecosystem.
Sustainability and Scalability
Mining rewards, promotional incentives, and other incentives are offered through demonstrable contributions to the network. While the $PLN token is used to fast-track user acquisition and network activity, incentives are carefully balanced with value entering the ecosystem through the demand side. Additional token use cases are catered towards improving network liquidity and increasing the total value locked on the network.
$PLANCK Token Utility
The $PLANCK token economy is primarily centered around sustainably powering the edge computing network. This is accomplished through the PoUW consensus mechanism allowing node operators (network contributors) to mine $PLANCK rewards by contributing CPU and GPU resources to artificial intelligence application developers. The supply side is balanced by the demand from application developers that integrate open-source API models from the marketplace into their applications. Their API usage directly deducts $PLANCK token balances, creating a pay-to-play business model that charges developers only based on the computational power they consume - scaling with usage.
The following high-level, token use cases encompass the digital asset economy for $PLANCK:
Network Contribution Rewards: $PLANCK mining rewards power the supply side of the network, creating CPU and GPU resources available to developers, while referral rewards and ecosystem support network expansion and encourage greater development on the blockchain.
Payment Barrier: A sustainable economy is achieved by circulating rewards back through the supply side of the network, where developers perform API calls by spending $PLANCK tokens. Third-party applications built on the network can incorporate $PLANCK payments into their applications as well to capture economic activity across applications.
Access Model: Various applications built by Planck Network will incorporate access models and incentive structures through the $PLANCK token. The Planck Network launchpad, for example, will incorporate a staking model that grants greater decision-making and participation to users who earn $PLANCK tokens.
$PLANCK Supply
$PLANCK has a total supply of 500,000,000 tokens that are pre-minted and locked in smart contracts that govern the scheduled release for use in the ecosystem. Token distributions are governed by the PoUW mechanism and network consumption metrics to measure network contributions and computational resource consumption to reward users proportionally. These metrics factor incoming value through the demand side to ensure the circulation is non-inflationary. The ultimate goal of token circulation is to accrue value in the token through user demand and activity.
Token Emissions
Emissions schedules for mining rewards and ecosystem expansion make these tokens available according to the company’s business development strategy. Rewards are distributed to users as a function of onboarding subscribers and the volume of token payments, to limit inflation of the circulating supply.
Allocation | Supply (%) | TGE (%) | Cliff (months) | Vesting (months) |
Pre-Sale 1: Early Contributors | 2.5% | 2.50% | 6 | 20 |
Pre-Sale 2: Seed | 4.2% | 2.50% | 6 | 20 |
Pre-Sale 3: Private Sale A | 6.3% | 5.00% | 3 | 20 |
Pre-Sale 4: Private Sale B | 5.7% | 5.00% | 3 | 20 |
Pre-Sale 5: Strategic | 3.1% | 10.00% | 2 | 18 |
Pre-Sale 6: KOL | 1.8% | 15.00% | 2 | 15 |
Public Sale | 2.5% | 25.00% | 0 | 3 |
Liquidity | 9.0% | 33.33% | 0 | 2 |
DAO Treasury | 5.0% | 0.00% | 0 | 12 |
Mining Rewards | 30.0% | 2.50% | 0 | 36 |
Liquidity Incentives | 7.5% | 5.00% | 2 | 12 |
Marketing & Promotion | 7.5% | 5.00% | 2 | 12 |
Advisors | 5.0% | 0.00% | 8 | 18 |
Foundation | 10.0% | 0.00% | 12 | 24 |
Token emissions follow the release schedule below, concluding after 36 months to factor in user growth, application layer expansion, edge computing network expansion, and API developer marketplace expansion. Profitability in native token revenue is anticipated throughout the schedule based on the balance in value flow rates.
Mining Rewards
30% of the total supply is dedicated to mining rewards and other types of user incentives. These tokens are earned by node operators and other users who beneficially contribute to the network. This token tranche is the largest, to accommodate the importance of quickly developing the edge computing network. Native token revenue will go back to replenishing rewards for this tranche in the long term.
Liquidity Incentives
A token tranche of 7.5% is reserved for incentives to bridge liquidity from other networks and blockchains into Planck Network. Liquidity availability will help power network transactions and create asset price stability in the long term. Users can earn token rewards by providing this liquidity and contributing to an essential network function.
Marketing and Promotion
7.5% of the total token supply is designated for marketing and promotion, aimed at boosting user acquisition via targeted airdrops, giveaways, and other promotional activities. This allocation grants the company the flexibility to employ web3-centric marketing tactics to support growth and enhance the ecosystem's visibility.
Pre-Sale Investors
Investor capital helps Planck Network take the $PLN to market for the mainnet launch, and further develop ecosystem infrastructure. 26% of the total token supply is dedicated to pre-sale investors in various rounds for a value-driven fundraising approach. A predetermined cliff and vesting schedule is assigned to each round, dictating the terms of token release to these investors.
Early Contributors: An angel round offers tokens to early believers
Seed Sale: Early venture capitalists that see the value in the network
Private Sale: Accommodate growing interest to target value-add investors
Strategic Sale: Investment granted to strategic and marketing partners
KOL Round: Allocations granted to social media marketing influencers
Public Sale: Dedicated to public sale platforms to offer tokens to potential users
Advisors
To onboard and incentivize advisors who are integral to business growth and profitability. These token incentives offer some tangible and speculative value for Planck Network to pursue partnerships or agreements with strategic advisors. These advisors can bring networking connections, specific expertise, or introductions to investors, for example.
Foundation
To compensate and incentivize the team members who are integral to the development and success of Planck Network. These tokens allow the company to create more diverse compensation packages for employees who are interested in some company equity. Planck Network can reduce labor costs by offering assets that will be value-backed by several other factors that do not include the company's bottom line.
Long-Term Value Accrual
Token Revenue and Reducing Circulation
The network uses a novel algorithm to aggregate that randomizes network node responsibilities and routes computational resources toward consumers developing smaller-scale applications. While node operators mine $PLN rewards for their network contributions, their roles may change each time they log into the network, along with their corresponding reward rates. Additionally, their rates are subject to premiums or discounts based on their historical performance that measures metrics such as consistency in connection, tenure, etc.
Application developers must pre-load their custodial wallets with $PLN tokens to begin making API calls from models integrated into their applications. Automated payment ramps allow easy conversion from fiat or other cryptocurrency into $PLN tokens deposited into these wallets. These $PLN balances are deducted based solely on the volume of API calls made by the application. Additionally, “consumers” rates may be subject to discounts based on their historical activity that measures metrics such as the volume of calls made, historical payment volume, and tenure. This system identifies certain developers as the ecosystem's “greatest and most loyal” customers, incentivizing them to stay within the ecosystem.
Planck Network’s rewards and payment systems are carefully balanced to ensure consistent native token revenue is accrued for the company and DAO treasuries, creating a viable business model. This balance weighs demand-side token revenue against supply-side rewards, promotional rewards, ecosystem grants, and referral bonuses. As a result, activity across the entire network accrues token balance in the treasury, reducing the amount of tokens circulating on the open market.
Staking and Locking Supply
The $PLANCK token is integrated into all native applications launched on the network, some of which require tokens to be purchased and staked in perpetuity for access to specific features.
DeFi Protocols will execute transactions in $PLN tokens and take a small fee
Liquidity Provisioning offers rewards for locking up tokens and other cryptocurrencies
Supply
The supply of assets granting voting rights, such as sNFTs and dNFTs are unlimited and can be minted without a supply cap. The circulating supply of these assets depends on the number of active node operators, and application developers that either generate and provide computational resources or consume computational resources. Planck must maintain an unlimited number of NFTs they can offer users to prevent limiting the growth and scalability of the user base.
Voting Rights
Voting rights are granted through account registration and acquisition of either an sNFT or dNFT, enabling every platform contributor or consumer the ability to participate in governance. Wallets holding these non-transferable assets will be granted access to the on-chain governance platform. The number of either sNFTs or dNFTs held by a single individual or organization is irrelevant considering each one corresponds to a single contributor or consumer, who may amass different amounts of voting rights through contribution or lack thereof.
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