> For the complete documentation index, see [llms.txt](https://deepnode.gitbook.io/docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://deepnode.gitbook.io/docs/ecosystem/incentive-mechanism/creators-and-backers.md).

# 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.

<figure><img src="/files/394jAnfIkhTn5JPoXAFl" alt=""><figcaption></figcaption></figure>

### **1. Roles of Creators & Backers**

See [Roles](/docs/platform/roles.md#stakers), [Roles](/docs/platform/roles.md#backers)for a more in depth description.

***

### **2. Incentive Flow**

The creator–backer incentive system follows a structured loop:

***

#### **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%

***

#### **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

***

#### **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.

***

#### **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.

***

### **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.

***

### **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