AKT : w([1, 0.3], [1.5, 0.2], [2, 0.3], [4, 0.1], [12, 0.1]) BTC : w([0.2, 0.3], [0.4, 0.2], [0.5, 0.2], [1, 0.1], [2, 0.2]) which give us the relative value for each token: AKT = 2.8 and BTC = 0.58 respectively.

V. TOKEN ECONOMICS AND INCENTIVES Providers earn income by selling computing cycles to tenants who lease computing services for a fee. However, in the early days of the network, there is a high chance the providers will not be able to earn a meaningful income due to a lack of sucient demand from the tenants (consumers of computing), which in turn hurts demand because of lack of supply. To solve this problem, we will incentivize the providers using ination by means of block rewards until a healthy threshold can be achieved. In this section, we describe the economics of mining and Akash Networks ination model. An ideal ination model should have the following properties: Early providers can provide services at exponentially lower costs than in the market outside the network, to accelerate adoption. The income a provider can earn is proportional to the number of tokens they stake.

The block compensation for a staker is proportional to their staked amount, the time to unlock and overall locked tokens. Stakers are incentivized to stake for longer periods. Short term stakers (such as some bear market participants) are also incentivized, but they gain a smaller reward. To maximize compensation, stakers are incentivized to re-stake their income. A. Motivation Akash Network aims to secure early adoption by oering exponential cost savings as a value proposition for tenants, and the eciency of a serverless infrastructure as an additional value proposition for tenants and providers. These value propositions are extremely compelling, especially for data and compute intensive applications such as machine learning.

B. Stake and Bind: Mining Protocol A provider commits to provide services for at least time T and intends to earn service income r every compensation period Tcomp = 1 day. Providers stake Akash tokens s and specify an unlock time t1, where minimal locktime t1 t should not be less than Tmin = 30 days. Additionally, they delegate (voting power) to validator v by bonding their stake via BindValidator transaction. A staker is a delegator and/or a validator to whom delegators delegate. Every provider is a staker, but not every staker is a provider; there can be stakers who are pure delegators providing no other services, and there can be stakers who are pure validators providing no other services. At any point, a staker can: a) Split their stake (or any piece of their stake) into two pieces. b) Increase their stake l by adding more AKT. c) Increase the lock time T , where T > Tmin.