Dynamic Pricing and Demand/Supply Dynamics

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Via the tokenomic mechanism, compute providers in the NuNet network will compete for providing the most cost-efficient and reliable computing capacities for executing every computational process bidden by network operation agents. AI service providers will compete for providing the most efficient and precise algorithms and AI engines. Data providers will compete for supplying the best quality and most reliable data needed by AI algorithms. Network operating agents will compete with each other in their abilities to find the best ways to construct computational workflows from data, computer resources, and AI services and ensure their most efficient execution, clearing, and settling of transactions on behalf of consumers, which will bid for actual work to be done on NuNet network. A successfully executed computational workflow will trigger a NuNet smart contract which will mine the amount of NuNet native tokens proportional to the computational work expended when executing the workflow.

In order to support the dynamic pricing of computational resources within the network, NuNet framework will:

• First of all, provide a composite computing price index, which will be available to all constituents of the framework in real-time via a native API. While prices of computing resources, charged by individual providers may differ from the index due to objective reasons (specialized capabilities, additional services, discounts / free support for socially beneficial computing projects, etc.), the index itself will serve as a global benchmark and a dynamic ‘bonding curve’, relating NuNet to the external market of computing resources and economy.

• The spot computing price in the network will depend on the supply and demand dynamics of computing resources and could significantly vary depending on immediate circumstances.

  • This will introduce the supply/demand dynamics, so when demand exceeds supply, the average price of computing within the NuNet network will exceed the price of computing 'in general', as measured by the index. New computing resources will be attracted to the network which will balance the price.

  • Additionally, the index will simplify transaction pricing, because it will introduce a simple measure according to which prices of different computational resources could be estimated and compared to each other -- which is essential for the network to work;

  • Within this framework, NuNet directly or via its partners may introduce decentralized finance instruments, such as future trading, staking and others in order to facilitate market mechanisms for balancing compute price within the network and sustaining growth of the network and token value;

  • Last but not least, the dynamic pricing of computing resources within NuNet will allow it to react in real-time to surges of computing demand which may become a distinctive and important property of the framework as a whole.