Miners

Miners provide DeepNode’s core utility by executing model tasks, running inference, and delivering verifiable computational work. Their performance directly determines the value generated within each domain.

1. Role of Miners

See Miners for a more in depth description.

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2. Incentive Flow

The miner incentive pipeline follows these steps:

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Step 0: Registration

Miners register on the domain by paying a registration fee and depositing $DN into a collateral contract.

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Step 1: Tasks Are Assigned

Miners receive tasks from the domain’s task queue. Each task corresponds to a workload defined by model creators and consumed by users or applications.

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Step 2: Miners Execute Tasks

Miners compute the required inference output and submit the result. The network records the miner’s identity, trust score, and collateral position.

The task and miner output are then passed to validators.

Phase 1 is limited to inference only tasks. No Training.

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Step 3: Validator Check – Correct or Incorrect?

Validators evaluate whether the miner’s output is correct.

If the output is correct:

• The task is approved

• VWU (Verified Work Units) are assigned

• Miner rewards are unlocked

If the output is incorrect:

• A validator reports bad behavior

• The task is rejected or reassigned

• The miner’s trust score is reduced

• A collateral review is triggered

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Step 4: Reward Distribution

Once validation is successful, rewards are distributed:

• Miners receive rewards based on VWU and task difficulty

• Validators receive their verification share

• Creators & Backers receive their w% share of model revenue

• Domain receives its configured portion

• Fees & Payment Processors take y%

• Variable Burn (d%) is applied depending on governance settings

All rewards originate from revenue, emissions and fees and are released after correct validation.

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3. Collateral & Misbehavior Handling

If a miner submits incorrect, fraudulent, or harmful outputs, the miner gets flagged.

Depending on severity and domain configuration:

A. A portion of collateral is burned/slashed (e%)

This penalizes miners for harmful behavior and compensates the network for the cost of verification.

B. A portion is returned (f%)

If behavior was minor or non-malicious, the system deregisters the miner while allowing partial recovery.

Collateral ensures:

• miners cannot cheaply attack the system

• incorrect results have economic consequences

• honest miners earn more through higher trust and faster task routing

Misbehaviour recognition and slashing is dangerous and will be manually reviewed by foundation in phase 1.

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4. Fee Routing & Domain Impact

• y% of task-related fees go to Fees & Payment Processors

• d% routes to Variable Burn, reducing supply

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5. Why Miners Matter

Miners are the primary producers of economic value in DeepNode. They:

• Execute the useful work that justifies $DN demand

• Scale the capacity of each domain

• Compete based on performance, reliability, trust, and cost efficiency

• Maintain collateral and reputation, creating strong alignment

Without miners, the network cannot deliver inference, serve workloads, or grow revenue. They are the economic engine behind the entire $DN flywheel.