Creators & Backers

Creators and Backers fuel DeepNode’s innovation engine. Creators build and register models, while Backers fund model development in order to gain a share in their upside.

1. Roles of Creators & Backers

See Stakers, Backersfor a more in depth description.

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2. Incentive Flow

The creator–backer incentive system follows a structured loop:

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Step 1: Funding Flows to Creators

Creators raise funding from backers, who provide:

• USDC through a funding contract

• Optional SAFE-like agreements representing % equity or future revenue

• Optionally place their capital into yield aggregators while the model is being developed (c%

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Step 2: Creators Build & Register Models

Creators use funding to:

• Train or improve models

• Tune performance and datasets

• Prepare them for miner execution

When registering a model, creators:

• Set royalty rates (b%)

• Specify revenue splits to backers (a%)

• Provide metadata, constraints, and performance parameters

• Publish it into the domain so miners can begin processing tasks

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Step 3: Models Generate Revenue

As usage grows, models become revenue-producing assets.

When consumers run inference tasks:

• Revenue flows into the Revenue module

• A portion goes to creators (b%)

• A portion returns to backers (a%)

• A portion routes to payment processors (y%)

• If funding yield was enabled, a portion (c%) routes to yield aggregators

This creates a feedback loop where model quality → usage → revenue → reinvestment.

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Step 4: Growth & Improvement

Creators can continuously improve their models:

• Updating versions

• Retraining

• Refining datasets

• Enhancing performance

As a model improves, usage increases → revenue scales → the creator/backer partnership becomes more valuable.

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3. Buyback, Burn & Foundation Support

The diagram includes two fixed flows:

• 1% to Buyback & Burn → permanently reduces $DN supply, increasing long-term scarcity

• 1% to the Foundation → funds grants, domain expansion, research, and infrastructure

These fees ensure that model growth directly strengthens both the economic and technical foundations of DeepNode.

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4. Why Creators & Backers Matter

Creators and Backers are critical to DeepNode’s long-term success. They:

• Introduce new models and services into the network

• Attract real usage and organic fees

• Make model ownership publicly available

• Create competition and innovation among models

• Tie economic incentives to performance and quality