Rewards System

The DataGram reward system for Cores is structured to incentivize performance, availability, and optimal geographic distribution. Rewards are distributed through a three-stage process, but it’s important to note that $UDP is only awarded to DataGram Full Cores, ensuring that those fully committed to operating robust infrastructure exclusively for the ecosystem receive the highest benefits.

1. Checkpoint One: Uptime and Availability Initial rewards are determined by the uptime and availability of each Full Core, based on three factors:

   • Proof of Work via Compute: Verifies that the Full Core is providing computational resources.

   • Proof of Data Storage via Availability: Ensures data stored on the Full Core is accessible.

   • Proof of Bandwidth via Data: Measures the volume of data the Full Core transmits or receives, ensuring bandwidth reliability.

2. Checkpoint Two: Latency and Response Times

   • Full Cores with the lowest latency and highest availability are prioritized for traffic, motivating operators to position their Cores in locations that ensure optimal performance. The Entrepreneurial Metagame further encourages geographic distribution to enhance the overall ecosystem.

3. Checkpoint Three: Actual Usage

   • Full Cores are rewarded based on the actual resources consumed, including bandwidth, compute power, and storage, ensuring those contributing the most to the network receive appropriate compensation.

Initially, the three segments of the Checkpoint One Rewards —Proof of Work via Compute, Proof of Data Storage via Availability, and Proof of Bandwidth via Data—will each be allocated roughly one-third of the total rewards. This ensures a balanced incentive structure during the early phases of the ecosystem. However, the long-term plan is to transition to a more dynamic system where the distribution shifts over time to better reflect real-time network demands. As the ecosystem evolves, these segments will adjust to prioritize the areas most critical to the network's health and efficiency. By allowing the distribution to adapt, the system can continually incentivize what the ecosystem needs most, such as scaling computational power, ensuring data availability, or optimizing bandwidth resources, ensuring that the infrastructure grows in alignment with network requirements.