DGRAM Token (Mainnet Rewards)

Once the network transitions to mainnet, participants will begin earning $DGRAM tokens, which serve as the core incentive for contributing compute, storage, and bandwidth resources to the Datagram ecosystem.

Conversion of Points into Tokens

Operators of Full Core nodes are rewarded with $UDP, $TCP, and $AI non-transferrable points based on their performance. These points correspond to the types of traffic or workloads processed by the node:

• $UDP (User Datagram Protocol): Represents low-latency, connectionless data traffic used in real-time applications like video, voice, and streaming.

• $TCP (Transmission Control Protocol): Represents reliable, connection-oriented traffic such as file transfers, browsing, and transactions.

• $AI: Represents compute-intensive workloads related to AI inference and training.

These are then converted into $DGRAM tokens at a fixed exchange rate.

Reward Distribution Model

Rewards are emitted daily through a controlled emissions schedule across three key checkpoints:

Checkpoint 1 – Uptime & Availability

Rewards in this category are distributed based on:

• Compute Contribution (Proof of Work)

• Data Storage Accessibility (Proof of Availability)

• Bandwidth Usage (Proof of Bandwidth)

Each of these factors initially receives one-third of the daily reward pool. In the future, allocations may dynamically adjust to meet evolving network needs. For example, if the network requires more storage capacity, a higher portion of rewards will be shifted toward storage contribution.

Checkpoint 2 – Latency & Response Times

Nodes with faster response times and consistent availability are rewarded for improving the overall responsiveness and quality of the Datagram network. These nodes also receive routing preference, increasing their chance to earn more.

Checkpoint 3 – Actual Resource Usage

Full Core nodes that actively contribute bandwidth, computation, and storage in real-world usage scenarios are rewarded based on the amount of traffic and work they handle.

During the early mainnet phase, rewards will be based exclusively on Checkpoints 1 and 2. As real usage increases, Checkpoint 3 will be introduced to reflect actual network load.

Reward Allocation in Year One

In the first year:

• 80% of daily $DGRAM emissions will go to uptime and availability

• 20% will go to usage-based metrics

Over time, these percentages will evolve to prioritize real-time utility and resource contribution.

Deflationary Emissions Formula

$DGRAM uses a deflationary emissions schedule. Daily token release is based on the latent supply (remaining tokens not yet in circulation):

Emissions Formula:

• Latent Supply = Maximum Supply - Current Circulating Supply

• Daily Emission = Latent Supply × 0.125%

Example: If the maximum supply is 10,000,000,000 tokens and the current supply is 5,250,000,000:

• Latent Supply = 4,750,000,000

• Daily Emission = 4,750,000,000 × 0.125% = 5,937,500 $DGRAM/day

This formula ensures that emissions decline as more tokens are released, preserving long-term value and avoiding inflationary pressure.