Emissions Rewards Explained

This page explains how BPL inflation rewards are distributed to AI creators, Applications, and contributors in simple terms.

The Big Picture

Bitplanet mints new BPL tokens through inflation (e.g., 8% annually). These tokens are distributed to:

1. Stakers/Validators - Securing the network (50%)

2. AI Ecosystem - Creators, Applications, and contributors via x/brahma (50%)

This page focuses on how the AI ecosystem portion is distributed.

The Three-Step Distribution

BPL emissions flow through three sequential steps:

┌─────────────────────────────────────────────────────────────────────────┐
│                         BPL EMISSIONS FLOW                              │
└─────────────────────────────────────────────────────────────────────────┘

                    Daily BPL Inflation
                           │
                           ▼
              ┌────────────────────────┐
              │   50% to Stakers       │───► Validator/Delegator rewards
              │   50% to AI Ecosystem  │
              └───────────┬────────────┘
                          │
                          ▼
                  AI Ecosystem Pool
                          │
╔═════════════════════════════════════════════════════════════════════════╗
║ STEP 1: Split by Market Cap (Gem Supply)                                ║
║         Each AI gets a share proportional to its gem market cap         ║
╚═════════════════════════════════════════════════════════════════════════╝
                          │
          ┌───────────────┼───────────────┐
          ▼               ▼               ▼
      AI Alpha        AI Beta        AI Gamma
       (60%)           (30%)          (10%)
          │               │               │
          ▼               ▼               ▼
╔═════════════════════════════════════════════════════════════════════════╗
║ STEP 2: Split by Role (Fixed Percentages)                               ║
║         Creator: 50% | Application: 30% | Contributors: 20%              ║
╚═════════════════════════════════════════════════════════════════════════╝
          │
          ├──► Creator (50%)
          │
          ├──► Application (30%)
          │
          └──► Contributors (20%)
                    │
                    ▼
╔═════════════════════════════════════════════════════════════════════════╗
║ STEP 3: Split Contributors by Proof of Contribution (Cores)             ║
║         Each contributor gets their share based on Cores earned         ║
╚═════════════════════════════════════════════════════════════════════════╝
                    │
          ┌────────┼────────┐
          ▼        ▼        ▼
       @user1   @user2   @user3
        (50%)    (30%)    (20%)

Worked Example

Let's walk through a concrete example with simple numbers.

Setup

• Daily BPL inflation: 10,000 BPL

• Siphon to AI ecosystem: 50% → 5,000 BPL

• Three AIs exist:

  • AI Alpha: 6,000 gems (60% of total market cap)

  • AI Beta: 3,000 gems (30% of total market cap)

  • AI Gamma: 1,000 gems (10% of total market cap)

Step 1: Split by Market Cap

AI	Market Cap Share	BPL Allocation
AI Alpha	60%	5,000 × 0.60 = 3,000 BPL
AI Beta	30%	5,000 × 0.30 = 1,500 BPL
AI Gamma	10%	5,000 × 0.10 = 500 BPL

Step 2: Split by Role (for AI Alpha)

Role	Split	BPL Amount
Creator	50%	3,000 × 0.50 = 1,500 BPL
Application	30%	3,000 × 0.30 = 900 BPL
Contributors	20%	3,000 × 0.20 = 600 BPL

Step 3: Split Contributors by Cores (for AI Alpha)

AI Alpha has three contributors with the following Core holdings:

Contributor	Cores	Share	BPL Reward
@user1	500	50%	600 × 0.50 = 300 BPL
@user2	300	30%	600 × 0.30 = 180 BPL
@user3	200	20%	600 × 0.20 = 120 BPL
Total	1,000	100%	600 BPL

The Complete Formula

For any contributor, their daily BPL reward is:

Your BPL = Daily_Inflation
         × Siphon_Rate (50%)
         × AI_MarketCap_Share
         × Contributor_Pool (20%)
         × Your_Core_Share

Example for @user1:

@user1's BPL = 10,000 × 0.50 × 0.60 × 0.20 × 0.50 = 300 BPL/day

Key Concepts Explained

What is Market Cap?

An AI's "market cap" determines its share of BPL emissions. The metric evolves in two phases:

Current Implementation (Pre-AMM):

market_cap_metric = gem_supply

Where gem_supply = total ERC-1155 Gem tokens in circulation.

Future Implementation (Post-AMM):

market_cap_metric = rolling_average[ (W1 × gem_supply) + (W2 × gem_market_cap) ]

Where:

• gem_supply = ERC-1155 totalSupply (count of gems)

• gem_market_cap = AMM_price × gem_supply (actual market value)

• W1, W2 = governance-adjustable weights

• rolling_average = smoothed over 30-90 days

Why this design?

Using a weighted combination of supply AND price (once AMM exists) mitigates manipulation:

• Supply alone: Harder to game (requires burning Cores), but doesn't reflect market sentiment

• Price alone: Vulnerable to pump-and-dump on thin liquidity

• Weighted combination: Governance can tune the balance to minimize manipulation while reflecting real value

The 30-90 day rolling average further smooths volatility and prevents short-term spikes from capturing disproportionate rewards.

What are Cores?

Cores represent proof of contribution to an AI. They're earned by:

• Creating the AI

• Training/improving the AI

• Referring users

• Generating revenue

• Other contributions defined by governance

Cores are burned 1:1 to mint Gems, so they represent historical contributions to the AI's development.

Why This Order?

The order matters:

1. Market Cap First - Ensures successful AIs (measured by user engagement/gem holdings) receive more rewards

2. Role Split Second - Ensures all stakeholders (creator, app operator, contributors) are incentivized

3. Cores Third - Ensures contributors are rewarded proportionally to their actual contributions

This creates alignment: contributors want their AI to succeed (higher market cap), and the market values AIs with strong contributor ecosystems.

Comparison: Two Mental Models

Model A: "Market Cap × Cores" (Correct)

@user1's reward = AI's share (from market cap) × user1's contributor share (from Cores)
               = 60% × 20% × 50%
               = 6% of AI ecosystem pool

Model B: "Cores × Market Cap" (Also Correct - Same Math)

The multiplication is commutative, so the order doesn't change the result. However, the conceptual flow is:

1. First, the AI as a whole earns rewards based on market cap

2. Then, that reward is split among creator, app, and contributors

3. Finally, the contributor pool is divided based on Core holdings

Summary Table

Step	Determined By	Purpose
1	Market Cap (Gem Supply)	Reward successful AIs
2	Fixed Split (50/30/20)	Balance stakeholder incentives
3	Core Holdings	Reward actual contributors

Parameters (Governance-Adjustable)

Parameter	Default	Description
siphon_percentage	50%	% of inflation to AI ecosystem
creator_split	50%	Creator's share per AI
application_split	30%	Application operator's share
contributor_split	20%	Contributors' pool share
max_ais_for_rewards	500	Max AIs eligible (by insertion order)
W1	1.0	Weight for gem_supply in market cap calculation (current default; meaningful post-AMM)
W2	0.0	Weight for gem_market_cap (AMM price × supply) (current default; meaningful post-AMM)

Further Reading

• Inflation Mechanism - Technical deep dive

• Reward Distribution - Claiming process

• Core Tokens - How Cores work

• Gem Tokens - How Gems work