# Business Logic

In a decentralized manner, although there are more participants providing models and computing services, we maintain a relatively simple payment structure. AI application developers pay model providers for model services. Model providers pay computing nodes for computing services. Additionally, these real business activities drive the prosperity of AI shard, so the AI shard will also provide token mining incentives to the two core participants: model providers and computing nodes.

### Model and Computing Service Fees

AI application developers pay model service fees directly to model providers without considering the complex pricing logic of the underlying computing power. Model providers pay computing nodes for the computing services necessary for the deployment and operation of their models.

Model service fees are freely priced by model providers. The service fees for computing nodes are determined by the platform based on objective parameters such as device type, runtime duration, and computing power rental market rates.

This creates a relatively fair business structure:

* AI application developers only need to focus on their model service fees.
* Computing nodes only need to focus on their computing service fees.
* Model providers set the pricing for their model services. Higher quality models can command higher prices, and those models attract more users, driving up the revenues of model providers.

### **AI Shard Mining Incentives**

As one of the shards of on TOP, AI shard shares mining rewards with the other shards. Due to the different nature of its business, the AI shard has a dedicated token incentive mechanism inside, which includes:

* Online Duration Mining Rewards: This represents a relatively stable income, determined by the basic status of the network, and reflects the economic base income provided by computing nodes maintaining the network. Model providers do not participate in this distribution.
* Task Mining Rewards: These are positively correlated with the actual AI task volume and are additional rewards allocated by the network upon the completion of AI tasks. Since the volume of real external business can vary, task mining rewards represent the token economy expansion brought by the network handling real business and are shared by both model providers and computing nodes.
* Model Launch Rewards: Model providers receive a one-time model upload reward upon the successful launch of a model. The condition for success is that the model must pass a trial run by the computing nodes.

### Summary

Therefore, for computing nodes, the total revenue within the AI shard consists of three parts:

{% hint style="info" %}
Online Duration Mining Reward + Task Mining Reward + Computing Service Fees
{% endhint %}

For model providers, the total revenue within the AI shard is:

{% hint style="info" %}
Task Mining Reward + Model Launch Reward + Model Service Fees - Computing Service Fees
{% endhint %}


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