Tokenomics
By combining the Proof of Data Capacity and the Proof of Data Utility protocols, the Nerian Grid makes a holistic token ecosystem for data retrieval tools
Proof of Data Capacity
By providing data to the Nerian Grid and thus increasing the Data Capacity of the Nerian Grid, NRN tokens are minted.
Proof of Data Utility
Users can use datasets, made available by Providers to the Nerian Grid, with NRN tokens which can be obtained from the market.
Proof of Stake
This consensus mechanism will be implemented in the Nerian Blockchain through which the probability of creating a new block is proportional to the number of tokens staked by a Validator. In other words, the higher the token stake of a Validator, the higher the chances for a Validator to be selected for verifying and validating transactions and creating a new block in the blockchain.
Implementation
Proof of Data Capacity
By providing data to the Nerian Grid and thus increasing the Data Capacity of the Nerian Grid, NRN tokens are minted. The minting process is done through the Proof of Data Capacity algorithm which is implemented to verify and validate the data provided to the Nerian Grid. In other words, the Proof of Data Capacity algorithm verifies and validates the Data Capacity of the Nerian Grid.
Proof of Data Utility
Users can use datasets, made available by Providers to the Nerian Grid, with NRN tokens which can be obtained from the market. The Proof of Data Utility algorithm is implemented to verify and validate the use of data within the Nerian Grid. In other words, the Proof of Data Utility algorithm verifies and validates the Data Utility of the Nerian Grid. The datasets that are open for utilisation will be monetised according to market valuations.
Virtual Stake
In the Nerian Blockchain, the probability of creating a new block is not proportional to the number of tokens purchased and staked by a Validator. Instead, the selection process depends on the Virtual Stake of a Validator. A Validator’s Virtual Stake is generated through the Proof of Data Capacity and Proof of Data Utility algorithms and is directly related to the Data Capacity and Data Utility on the Nerian Grid.
Security
By implementing the concept of Virtual Stake algorithms in the Nerian Blockchain, manipulation through pure token stake is eliminated and the chance for a 51 % is reduced. A Validator who wants to perform a malicious action will have to provide more than half of the Data Capacity as well as acquire more than half of the Data Utility on the Nerian Grid, which will be very difficult to achieve.
Randomisation
Multiple randomisation selection mechanisms are implemented into the Proof of Stake to avoid monopolisation within the peer-to-peer network
Coin Age
The Coin Age selection mechanism chooses a Validator based on the period that their Virtual Stake has been active.
Randomised Blocks
The Randomised Block selection mechanism selects Validators for the process of validating based on a hit and target value.
Tokenomics
Our data cannot be carried around everywhere we go, let alone exchanged on the spot with people interested in using it. Therefore, a token (NRN) is issued, which serves as the digital embodiment of the data.
The token economics depend on the state of the Nerian Grid, which is determined by the ra- tio of Data Utility over Data Capacity. The former is determined by the Utility Transactions, whereas the latter is determined by the Capacity Transactions.
Ecosystem Relationships
Capacity Transactions
By providing data to the Nerian Grid, tokens are minted and burned by computer code, i.e. the Proof of Data Capacity algorithm, through Capacity Transactions. These transactions determine the Data Capacity of the Nerian Grid. The size of a Capacity Transaction is related to the amount of data provided to the Nerian Grid and depends on the market value of the Cloud Capacity (used to store and share the data) as well as on the market value of the NRN token.
Utility Transactions
By using data on the Nerian Grid, tokens are minted and burned by computer code, i.e. the Proof of Data Utility algorithm, through Utility Transactions. These transactions determine the Data Utility of the Nerian Grid. The size of a Utility Transaction is related to how much the data is used on the Nerian Grid and depends on the market value of the Data as well as on the market value of the NRN token.
Circulation
Although the Proof of Data Capacity and Proof of Data Utility algorithms stand alone, they act like communicating barrels and consist of incentive mechanisms responding to the Grid State. In other words, the number of tokens circulating is affected by the Grid State and will be subject to change. These incentive mechanisms are based on economical principles that have been re-interpreted and respond in a randomised sequence relative to the following formula:
Sv = PV
Therefore, there will be no cap on minting tokens, but the circulation will be stabilised through the circulation algorithm.
Analytics
February 2023
Circulating Supply
NERIAN Price
Market Cap
14,256,782
$0.0071
$104,500
Token Partners
