Render (RENDER) -rahakkeen tokenomiikka

The token economics of the Render Network (RENDER) are centered around a Burn Mint Equilibrium (BME) model, which was implemented following the network's migration to the Solana blockchain in November 2023. This model is designed to balance the supply and demand for GPU compute services by linking token usage (burning) with token issuance (minting/emissions).

The RENDER token is the native SPL token on Solana, replacing the legacy ERC-20 RNDR token on Ethereum, which can be swapped at a 1:1 ratio via a dedicated one-way upgrade portal.

Issuance Mechanism

The issuance mechanism for RENDER is based on a predefined, declining emission schedule, which was approved by the community through Render Network Proposals (RNPs). This mechanism is tied to the Burn Mint Equilibrium (BME) model.

• Maximum Supply Increase: Following the launch on Solana and the implementation of the BME model, the maximum token supply was increased from the initial ~536.87 million to 644.25 million RENDER.
• Emission Schedule: The additional ~107.38 million tokens are scheduled to be issued solely on Solana over a ten-year period and distributed as rewards.
• Planned Emissions:
  • Year 1 (2024): Approximately 9.13 million RENDER were planned to be minted.
  • Year 2 (2025): Approximately 5.90 million RENDER are scheduled to be minted.

Allocation Mechanism

The newly emitted RENDER tokens are allocated to key network participants and the Render Network Foundation to support operations and growth.

Second-Year Emission Allocation (2025)

For the second year of emissions (~5.90 million RENDER), the allocation is split between the Foundation and network users:

First-Year Emission Allocation (2024)

Of the planned ~9.13 million RENDER minted in the first year (2024), the distribution included:

• Render Network Foundation: Accrued ~4.57 million RENDER (50.00% of first-year emissions).
• Community Upgrade Rewards: ~1.14 million RENDER were distributed for upgrade incentives (swapping RNDR to RENDER).
• Node Operator Payments: ~1.55 million RENDER were allocated.
• AI/Compute Client Incentives: ~0.54 million RENDER were distributed.
• Artist Grants: ~0.15 million RENDER were allocated.

Usage and Incentive Mechanism (Burn Mint Equilibrium)

The core economic model of Render Network is the Burn Mint Equilibrium (BME), which governs how the token is used for services and how rewards are distributed.

Token Usage (Burning)

• Payment for Services: Creators and third-party compute clients pay for rendering and AI computing jobs in RENDER.
• Fiat Pricing: Jobs are priced in USD, and the requester deposits the equivalent amount of RENDER.
• Burning Process: Upon job completion, the network automatically deducts a 5.00% transaction fee. The equivalent USD value of the requester's RENDER deposit is then burned by the BME smart contracts.
• Render Credits: The requester receives non-fungible and non-transferrable Render Credits as on-chain evidence of payment for the completed job. These credits are issued in an equivalent USD value to the RENDER tokens burned.

Incentive Mechanism (Minting/Rewards)

• Node Operator Rewards: Node operators, who provide the GPU compute power, are rewarded in RENDER tokens for fulfilling jobs.
  • The BME smart contracts simultaneously mint an equivalent amount of RENDER to the burned tokens, which is then distributed to node operators as rewards.
  • Node operators receive a portion of the scheduled emissions, such as the ~1.50 million RENDER reserved for them in the second year, distributed at a rate of approximately 90,000 RENDER per month.
  • Rewards are allocated on an epoch-by-epoch basis (typically weekly) based on network usage, and factors like a node’s compute quantity, bandwidth, GPU model, and uptime.
• Creator Rebates: Creators (Artists and AI Clients) receive rebates for the RENDER tokens they expend to request services, funded by the creator pool allocation (~1.50 million RENDER in the second year).

Locking Mechanism and Unlocking Time

Information regarding a specific, general locking mechanism or unlocking time for the RENDER token supply (e.g., for team, private sale, or foundation allocations) was not available.

However, the initial allocation of ERC-20 RNDR tokens to team members and advisors (10.00% of the initial maximum supply) was subject to a six-month lock-up period.

For the new SPL RENDER tokens, the emission schedule dictates the release of tokens over a ten-year period, which acts as a long-term distribution schedule for the newly minted supply.

Token Bridging Lockup

When bridging the legacy ERC-20 RNDR token from Ethereum to the SPL RENDER token on Solana via the Wormhole Bridge, a lockup/mint and burn/unlock mechanism is used. The origin tokens (RNDR) are locked up on the origin chain (Ethereum) to mint the destination tokens (RENDER) on Solana. The swap via the dedicated upgrade portal is one-way, meaning the swap cannot be reversed.