5.1. Tri-Token Model

The Datagram ecosystem employs a tri-token model that includes:

• $DGRAM: The primary utility token used for payments and governance.

• $DATA: A burnable, non-transferable token for service payments.

• $UDP, $TCP & $AI Reward Points: Non-transferable points for infrastructure contributors.

$DGRAM is the primary payment token within the Datagram ecosystem, based on the Avalanche network using the AVAX C-Chain ARC-20 standard. $DGRAM will be tradeable on exchanges and can only be obtained by converting $UDP, which is awarded to Cores for providing infrastructure services. $DGRAM serves as the currency for payments within the ecosystem, facilitating transactions for services and rewarding operators for their contributions.

$DATA is a non-transferable, burnable token designed for purchasing services within the Datagram network. with each $DATA token equivalent to $0.01 worth of services. $DATA is generated when $DGRAM is burned, with the burn value locked in at a seven-day moving average of $DGRAM’s fiat value using the CoinGecko Oracle. This mechanism ensures that users who prepay for services by converting $DGRAM into $DATA are protected from market volatility, as the value of $DATA remains stable despite any fluctuations in the price of $DGRAM.

$UDP, $TCP & $AI are distributed as network rewards, corresponding to two fundamental types of internet traffic: User Datagram Protocol UDP and Transmission Control Protocol (TCP).

• UDP traffic is connectionless and low-latency, transmitting data quickly without verifying delivery. This makes it ideal for real-time applications such as gaming, streaming, and audio and video communication.

• TCP traffic is connection-oriented and reliable, ensuring data is delivered accurately and in order. This is essential for web browsing, media streaming, financial transactions, and other applications where data Integrity is critical.

• AI traffic is a blend of compute and low-latency data for real-time inference with high-throughput needs for training and synchronization.

Core operators earn non-transferable $UDP and $TCP points based on their contributions to the network. These points accumulate throughout the day and are redeemed at the end of each day into $DGRAM at a rate of $0.01 per point, calculated based on a seven-day price average of $DGRAM. For example, an operator earning 10,000

$UDP and 5,000 $TCP points in a day would receive $150 worth of $DGRAM upon settlement ($100 from UDP traffic + $50 from TCP traffic). Importantly, $UDP is exclusively awarded to Datagram Full Cores, ensuring that only fully committed infrastructure providers benefit from these high-performance network incentives.

Operators using the Datagram Custodial Wallet must maintain a minimum balance of $20 before they can transfer or convert their accumulated $DGRAM. Additionally, custodial wallet users will incur a small transaction fee when processing transfers. In contrast, operators using non-custodial wallets (e.g. Metamask) are only responsible for covering the standard gas fees required by the ecosystem, providing greater flexibility and control over their funds.