Tokenomics
The Züs Network is designed as a decentralized storage ecosystem that incentivizes both clients and storage providers (blobbers) through a token-based economy.
This document details the reward mechanisms, storage pricing models, staking dynamics, and overall economic structure governing the Züs Network.
Economic Model
The Züs Network employs a Proof of Stake (PoS) consensus mechanism, enabling blobbers to earn rewards by providing storage services and staking tokens. The economic model is structured around the following key elements:
Blobber Rewards: Based on data storage, retrieval, and staking capacity.
Client Costs: Determined by storage duration, read/write operations, and allocation selection.
Staking and Delegation: Allows third parties to stake on blobbers for a share of rewards.
Challenge Mechanism: Ensures data integrity through random validation.
Storage Provider (Blobber) Rewards
Blobbers earn revenue from multiple sources, ensuring that economic incentives align with storage performance and reliability.
Blobbers earn revenue from four sources:
Proceeds from writes (V_write): Fees collected from clients for data storage.
Proceeds from reads (V_read): Fees collected for data retrieval.
Annual block rewards (V_block): Distributed rewards based on stake and service quality.
Challenge validation rewards (V_validation): Earned by proving stored data integrity.
The total revenue for a blobber is calculated as:
V_blobber = V_write + V_read + V_block + V_validationBlobbers with high performance, low failure rates, and competitive pricing receive higher rewards over time.
Client Storage & Cost Model
Clients interact with the Züs Network to store and retrieve data. The cost structure includes:
a. Allocations
When storing data, clients create an allocation by selecting N blobbers, where:
k blobbers store actual data.
m blobbers store parity for redundancy (Erasure Coding).
The higher the m/k ratio, the better the durability and availability.
b. Reading & Writing Costs
Clients pay upfront for storage and retrieval fees are calculated dynamically.
The write cost is prepaid for the storage duration (typically one year).
The read cost depends on blobbers' pricing models and the presence of free reads.
c. Write Pool & Read Pool
Write Pool: Clients deposit tokens upfront for write operations.
Read Pool: Clients deposit tokens if blobbers charge for reads.
Unused write pool tokens are returned at the end of the allocation period.
Staking & Delegation
The Züs Network allows delegation to blobbers. Delegators can stake tokens, and rewards are distributed proportionally. The service provider's total earnings are:
I_blobber = Commission + (Stake proportion × Total rewards)a. Blobber Staking Model
Blobbers must stake tokens before providing storage. A higher stake means:
Better reputation
Higher rewards
More allocation requests from clients
b. Delegated Staking
Third-party users (delegators) can stake tokens on blobbers and earn a share of rewards.
Stake Lockup Period
Staked tokens remain locked until allocation expiration.
Delegators can withdraw unstaked tokens anytime.
5. Challenge Mechanism & Security
Blobbers are periodically challenged to prove they store data correctly. If they fail:
Challenge rewards are returned to the client.
A portion of the blobber’s stake is slashed and burned.
This ensures data reliability and discourages dishonest storage providers.
Challenge Success Rate= Total Challenges Issued / Valid Responses6. Storage Provider Weight Calculation
Blobber rewards are based on read/write pricing and service quality. The weight formula:
Weight (w) = β × Stake (S)Where β is influenced by:
Read price to write price ratio (p)
Data egress ratio (z)
Stake and performance history
Token Circulation & Demand
a. Demand Drivers
Storage Demand: Clients must lock tokens to store data.
Read Fees: Users pay for retrieving data.
Governance & Staking: Tokens are used for voting and securing the network.
b. Supply Control
Failing blobbers lose staked tokens, reducing circulation.
Token burns from slashing reduce supply over time.
c. Economic Balance
The Züs Network fosters competition where blobbers optimize pricing based on demand, leading to fair and stable storage costs.
Equilibrium Price = (Storage Demand / Storage Supply) x Base Pricewhere:
Storage Demand = Total active allocations
Storage Supply = Available capacity from blobbers
The Züs Network provides an incentive-driven, decentralized storage economy with competitive pricing, transparent rewards, and secure data integrity mechanisms. The tokenomics model ensures fair compensation for service providers while keeping storage affordable for users.
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