Datagram Rewards System

The Datagram rewards system is designed to incentivize and fairly compensate those who contribute infrastructure and support to the network, whether during the early testnet phase or the full-scale mainnet launch. It creates a dual-layered model that supports the growth, performance, and sustainability of the ecosystem by rewarding measurable contributions in real time.

Unlike traditional systems that rely on fixed infrastructure, Datagram dynamically scales with user demand and compensates participants based on their availability, activity, and reliability. This is achieved through a hybrid model of point-based incentives during the Alpha Testnet and token-based rewards post-mainnet using the $DGRAM token.

Phased Reward Lifecycle

The rewards lifecycle is split into two distinct operational phases:

1. Alpha Testnet Phase (Points-Based): Participants receive non-transferable performance points (DPTS) for uptime, bandwidth, and compute contributions. These points serve as early contribution records and will be used to claim rewards upon mainnet launch. The rewards are distributed based on tracked uptime, actual usage, and number of confirmed referrals.

2. Mainnet Phase (Token-Based): Once the network is live, operators begin earning $DGRAM tokens. These tokens are distributed daily through a dynamic emissions model. Token rewards scale with contribution and demand, ensuring infrastructure providers are compensated proportionally to their performance and value to the ecosystem.

Who Can Earn Rewards

Datagram’s reward system is inclusive and designed to support multiple contributor types:

• Full Core Operators: Backbone node operators that provide high-availability infrastructure, process critical traffic, and are eligible for the highest rewards.

• Partner Core Operators: Nodes that handle load balancing and overflow traffic.

• Testnet Participants: Early supporters who contribute during the Alpha phase and earn points for future conversion.

• Referrers: Community members who bring new users or operators into the ecosystem.

• Stakers and Validators: After the mainnet, those who lock tokens or participate in governance and validation.

How Rewards Are Measured

Rewards are calculated through the Checkpoints System, a three-part measurement model introduced in the whitepaper:

• Checkpoint 1: Uptime and Availability Verifies that nodes remain online and are actively contributing compute, bandwidth, or storage. This includes proof-of-compute, proof-of-bandwidth, and proof-of-storage. While no fixed uptime percentage is specified, nodes must maintain consistent availability to qualify for rewards. The Network Operations Center (NOC) continuously monitors uptime and resource contributions to determine eligibility.

• Checkpoint 2: Latency and Performance Rewards nodes that provide low-latency responses and high reliability, crucial for supporting real-time applications like video conferencing or AI inference.

• Checkpoint 3: Actual Usage (Mainnet) Focuses on traffic volume and resource consumption. Nodes that carry more real-world workload receive proportionally higher rewards.

During the Alpha Testnet, only Checkpoints 1 and 2 are active. After the mainnet, all three are fully implemented.

Conversion from Points to Tokens

During the Alpha Testnet, users will only earn DPTS (Datagram Points). While the full token system—$DGRAM > DATA > UDP / AI > $DGRAM—is active in the background, it does not affect rewards during this phase.

Only your total DPTS—earned through verified uptime and confirmed referrals—will determine how many DGRAM tokens you can claim at the end of the testnet. The conversion rate is influenced by:

• Your total accumulated points

• The 7-day average market price of $DGRAM

• The emissions cap and current token supply.

Protocol labels like $UDP, $AI, and $TCP may appear in the UI, but they are not used in the reward calculation during the Alpha Testnet.