Overview
Bitplanet's economic system is designed around a simple principle: value creation should be rewarded proportionally. Whether you create AI agents, improve them through contributions, build platforms that host them, or secure the blockchain itself, the network ensures you earn rewards that reflect your impact.
The Dual Economy Model
Bitplanet operates two parallel economic systems that never compete for the same resources:
AI Attribution Economy (50% of inflation)
The AI Attribution system rewards those who create, improve, and distribute AI agents. Every block, 50% of newly minted BPL tokens flow into this pool and are distributed based on AI performance:
Applications earn 30% for hosting and distributing AI agents
AI Creators earn 50% of their AI's rewards for creating the agent
Contributors earn 20% for training, improving, and promoting AIs
Rewards are allocated proportionally based on AI market capitalization—a direct measure of user demand and engagement. The more people hold an AI's GEM tokens, the higher its market cap, and the more rewards flow to everyone involved in its success.
Network Security Economy (50% of inflation)
The remaining 50% of inflation flows to the distribution module and is allocated using standard BitSDK mechanisms:
Community tax (~5% of the 50%) funds ecosystem development through the community pool
Staking rewards (~95% of the 50%) go to validators and delegators who secure the blockchain
Validators earn their commission rate (typically 5-10%) on staking rewards
Delegators receive the majority of staking rewards proportional to their stake
This standard Proof-of-Stake mechanism ensures the network remains secure and operational, independent of AI performance.
Why Separation Matters: By splitting these systems, Bitplanet ensures that AI innovation receives dedicated funding without reducing network security incentives. Both systems can grow sustainably without competing for the same reward pool.
Why This Distribution Ratio
The inflation split represents a careful balance between innovation and security:
Balanced Approach (50%/50%): This equal split recognizes the dual importance of both network security and AI innovation. With 50% allocated to network security, validators and delegators still receive substantial economic incentives to maintain honest behavior and invest in infrastructure, earning competitive returns (~4-5% annually from inflation at current settings).
AI Innovation Priority (50%): The 50% allocation to AI attribution (~4-5% of total supply annually at current settings) provides substantial funding for creators and contributors, accelerating the development and adoption of AI agents. This allocation ensures that the AI ecosystem receives dedicated resources to compete with traditional AI platforms while maintaining decentralized governance.
Governance Adjustable: The current 50%/50% split can be modified through governance proposals. As the network matures and the community observes the actual balance between AI ecosystem growth and validator economics, this ratio can be adjusted to optimize both innovation incentives and network security. This flexibility ensures Bitplanet can adapt to changing needs—for example, increasing AI attribution rewards as the ecosystem expands, or adjusting based on validator participation rates.
See the complete inflation flow: Inflation Distribution Diagram
Three Tokens, Three Purposes
Bitplanet uses three distinct tokens, each serving a specific role in the economy:
BPL Coin (Native Coin)
Purpose: The network's native coin for staking, fees, and rewards
BPL is minted through inflation at an 8-10% annual rate (governance-adjustable) and serves as:
Staking collateral for validators
Transaction fees
Reward currency for all participants
Governance voting power
Every participant—creators, contributors, Applications, and validators—ultimately earns rewards in BPL coins.
CORE Tokens (Permission Tokens)
Purpose: Governance-controlled permissions to bootstrap new AIs
CORE tokens are special allocations granted through community voting:
Platform (e.g., Deva) submits a Core Grant Application proposal on behalf of AI creators
Community votes on the proposal's merit
If approved, the platform receives CORE allocation permission
Platform submits Requests for Core (RfC) to distribute CORE to creators and contributors as they make contributions
Platform automatically converts CORE to GEM tokens on behalf of users
CORE tokens are a scarce, freely tradeable reserve commodity used to bootstrap new AIs and mint GEM tokens.
GEM Tokens (AI-Specific Tokens)
Purpose: Tradeable tokens representing individual AI value
Each AI agent has its own unique GEM token, created by burning CORE tokens at a 1:1 ratio. GEM tokens are:
Freely tradeable on decentralized exchanges
AI-specific, enabling independent valuation
Market signals used to calculate reward distribution
When you hold GEM tokens, you're expressing confidence in that AI's value. Collectively, all GEM holders determine the AI's market cap, which directly influences how much of the 50% inflation pool flows to that AI's ecosystem.
How Value Flows
The economic cycle creates sustainable incentives for all participants:
Block-by-Block Distribution
Every block, the network:
Mints new BPL at an 8-10% annual inflation rate (governance-adjustable)
Splits inflation into two pools: 50% for AI attribution, 50% for validators
Calculates AI shares based on GEM token market caps
Distributes to participants according to their roles and contributions
Accumulates in claimable balances until users claim their rewards
This continuous distribution means rewards accumulate automatically—you don't need to actively claim every block. Instead, rewards build up over time until you choose to claim them in a single transaction.
Market-Driven Allocation
Unlike systems that rely on votes or subjective measures, Bitplanet uses objective market signals:
Current: Market cap = GEM token supply (ERC1155 totalSupply)
Future (Post-AMM): Market cap =
(W1 × gem_supply) + (W2 × AMM_price × supply)with governance-adjustable weights30-90 day rolling average prevents manipulation through short-term spikes
Proportional distribution ensures fair allocation across all successful AIs
The weighted formula (once AMM exists) lets governance tune the balance between supply-based and price-based metrics, mitigating price manipulation on thin liquidity while still reflecting market sentiment.
If your AI serves 10% of the market (measured by market cap metric), it receives 10% of the AI Attribution pool. Simple, objective, and tamper-resistant.
Economic Incentives
The system creates powerful alignment between different participants:
For AI Creators:
Long-term revenue stream tied to AI success
Incentive to create valuable, lasting AI agents
Reward increases as more users adopt the AI
For Contributors:
Fair compensation for training, referrals, and improvements
Proportional rewards based on contribution quantity
Opportunity to support multiple AIs simultaneously
For Applications:
Sustainable revenue without charging users directly
Incentive to host high-quality AIs
Revenue grows with platform success
For Validators:
Commission on staking rewards from their delegator pool
Rewards flow through standard BitSDK distribution module (based on Cosmos SDK)
Predictable income independent of AI performance
Additional transaction fee revenue from proposed blocks
For Delegators:
Earn majority of staking rewards (after validator commission)
Passive income by delegating to trusted validators
Proportional rewards based on stake amount
Standard BitSDK mechanisms for familiarity (based on Cosmos SDK)
Governance Control
All economic parameters are controlled by BPL token holders through governance:
Inflation split (currently 50%/50%) can be adjusted
Reward percentages (50/30/20 split) can be modified
Contribution types can be added or removed
Performance limits can be tuned for efficiency
This ensures the economic system can evolve with the network's needs while maintaining decentralized control.
Why This Model Works
Bitplanet's economic design addresses common challenges in AI and blockchain systems:
Sustainable Funding
Traditional platforms rely on fees or subscriptions that create friction. Bitplanet funds AI development through inflation—a predictable, sustainable source that grows with the network.
Fair Attribution
Contributions to AI development are tracked on-chain with cryptographic certainty. No central authority decides who contributed what—the blockchain provides an immutable record.
Market Efficiency
By tying rewards to market cap rather than votes or subjective measures, the system harnesses collective intelligence. Users "vote with their wallets" by holding GEM tokens of AIs they find valuable.
Aligned Incentives
Every participant benefits from the same outcome: successful AI agents. Creators, contributors, and Applications all earn more when their AI grows in market cap, creating natural cooperation.
Separation of Concerns
AI innovation operates independently from network security. Neither competes with the other for resources, ensuring both can thrive simultaneously.
Getting Started
To participate in Bitplanet's economy:
Technical Details
For implementation details, smart contract specifics, and precise algorithms:
Token Economics Technical - Deep dive into implementation
Inflation Mechanism - How rewards are calculated
Reward Distribution - Claiming and allocation process
CORE Tokens - Governance-controlled bootstrapping
GEM Tokens - AI-specific tradeable tokens
AI Tensor Matrix - Contribution tracking system
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