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Task Rewards and Fee Distribution

When a validator successfully solves a task for a mineable model, they receive both fees from the task submitter and mining rewards from the protocol. Understanding how these are calculated and distributed is essential for validators and model creators.

Fee Distribution (V6)

V6 Change: Validator earnings now automatically compound into their stake instead of being transferred, increasing voting power and simplifying operations.

Fee Components

Every task has two fee components:

  1. Model Fee (model.fee) - Set by the model owner
  2. Task Fee (task.fee) - Set by the task submitter (paid by task submitter)

Important: The task submitter pays task.fee, which must be at least model.fee. If model.fee > task.fee, the model fee is set to 0 to prevent drainage attacks.

Distribution Flow

Model Fee Split

The model fee is split between treasury and model owner:

  • Treasury portion: modelFee × solutionModelFeePercentage
  • Model owner portion: modelFee - treasury portion

The model owner receives their portion as a direct transfer.

V6 Per-Model Fee Overrides:

  • Contract owner can set solutionModelFeePercentageOverride[modelId] for specific models
  • When set, the override percentage is used instead of the global solutionModelFeePercentage
  • Useful for negotiating custom deals with high-value model providers
  • Can be cleared to return to the global default

Task Fee Split

The remaining task fee (after model fee) is split between treasury and validator:

  • Remaining fee: taskFee - modelFee
  • Treasury portion: remainingFee × solutionFeePercentage
  • Validator portion: remainingFee - treasury portion

In V6, the validator's portion is added to their staked balance instead of being transferred directly.

V6 Stake Compounding

All validator earnings are added to their stake:

  • Solution fees go to validator stake
  • Mining rewards go to validator stake
  • Contestation rewards go to validator stake

Benefits:

  • Automatic compounding of earnings
  • Increased voting power over time
  • Gas savings from fewer transfers
  • Simplified validator operations

To access earnings, use the three-step withdraw process described in the Validators page.

Mining Rewards

When a task is solved for a mineable model (one with rate greater than 0), the validator receives mining rewards based on the emission schedule.

Reward Calculation

Mining rewards are calculated using the base reward, model rate, and gauge multiplier from veAIUS voting.

Reward Distribution (V3+)

Mining rewards are split three ways:

  • Treasury: Receives treasuryRewardPercentage (transferred directly)
  • Task Owner: Receives taskOwnerRewardPercentage (transferred directly)
  • Validator: Receives the remainder (added to stake in V6)

veStaking Share (V4+)

Half of all mining rewards go to veStaking for veAIUS holders. The other half is distributed as task rewards as described above.

Gauge System (V5+)

veAIUS holders can vote on which models receive mining rewards through the gauge system.

How It Works

  1. Gauge Creation: Models can have gauges created for them
  2. veAIUS Voting: veAIUS holders vote to direct emissions
  3. Multiplier Calculation: Vote weight determines the gauge multiplier
  4. Reward Distribution: Models with higher votes receive more rewards

Impact on Mining

If a model has no gauge, it receives no mining rewards (only fees). If a model has a gauge, mining rewards are proportional to votes received.

This allows the community to direct emissions to the most valuable models.

Emission Schedule

Current Schedule (V5+)

The emission schedule was doubled in V5 to extend the mining period and increase sustainability.

The emission schedule follows a 2-year halving period (doubled from 1 year in V5), reaching approximately 99% of supply after 14 years.

Key Points:

  • 2-year halving period
  • Approximately 14 years to reach 99% of supply
  • Lower immediate inflation
  • More sustainable long-term incentives

Difficulty Multiplier

The difficulty multiplier adjusts rewards based on actual versus target supply to create a self-balancing emission system.

Additional Costs for Validators

Solution Stake (V2+)

When submitting solutions, validators must have both:

  1. Validator minimum stake (percentage of supply)
  2. Additional solutionsStakeAmount per solution

This additional stake is:

  • Temporarily locked when a solution is submitted
  • Returned to validator stake when successfully claimed
  • Forfeited if a contestation against the solution succeeds

Purpose: Prevents frivolous solution submissions and ensures validators have skin in the game

Solution Rate Limit (V3+)

Validators cannot submit solutions too quickly. The minimum wait time is based on the solution rate limit multiplied by the number of solutions.

Purpose: Fair distribution of mining opportunities

Summary

For Task Submitters:

  • Pay task fee to have task solved
  • Receive percentage of mining rewards (if mineable)
  • Higher fee means faster solution (validators prioritize)

For Model Owners:

  • Set model fee to earn from each task
  • Split with treasury based on fee percentage
  • Can negotiate custom splits via fee overrides (admin only)

For Validators:

  • Earn fees from tasks (automatically added to stake in V6)
  • Earn mining rewards from mineable models (added to stake in V6)
  • Higher stake equals more voting power
  • Use withdraw process to access accumulated earnings

For veAIUS Holders:

  • Receive 50% of all mining rewards via veStaking
  • Vote on gauge weights to direct model emissions
  • Earn proportional to lock duration and amount