Fluence Provider Compensation

Proposals
1

We, Charles Cao representing Nebula Block, are a compute capacity provider to the Fluence network and an active launch partner and mainnet participant. Due to a variety of reasons, the expected mainnet capacity onboarding has been delayed from a February 2024 start date and participating providers, including Nebula, have had to carry allocated but not rewarded capacity to the network. Moreover, additional requirements, such as deploying, debugging and managing IPC validators have consumed significant resources. Our commitment to the project has resulted in an unexpected financial burden that makes it harder to continue our support of the Fluence protocol.

To alleviate this situation, we propose that the Fluence DAO allocate FLT rewards to each of the launch partners participating in the test phase to compensate for the delay in on ramping capacity and staking to the mainnet at the projected dates as well as the operations of an unexpectedly resource-intensive IPC validator.

Specifically, we propose to be reimbursed for the underutilization of capacity for Nebula for the March 1, 2024 through July 31, 2024 period with

  • FLT 80 per month per core for the 600 cores allocated to be committed to the mainnet. This number is based on the operating cost of USD 10 per core per month and an average FLT price over the March 1, 2024 to July 15, 2024 of $0.62
  • FLT 1,000 per month per validator for one validator

We further propose to extend this program to the other Fluence launch partners.

3 Likes
2

Thank you Charles and team. After taking your rather valid proposal into consideration, I propose the following proposal covering all the launch partners involved in active testing, capacity provisioning and validator operation. We also want to take this opportunity to thank the Nebula, Piknik Origin, Filmine and Vault32 teams on behalf of the community and DAO for their invaluable contributions and we are looking forward to continue our DePIN journey with you.

On to the proposal:

This proposal initiates the distribution of tokens for foregone revenue to Fluence capacity providers actively reserving server capacity to the Fluence mainnet launch but unable to receive capacity rewards. A two-tier reward structure is proposed to make early providers whole:

  • A retroactive reward component to compensate eligible provider capacity in FLT, subject to a three months lockup period, for committed but unused capacity for the extended launch period from March 2024 through July 2024.
  • A retroactive reward component to compensate providers for operating and managing IPC validators
  • A proactive reward component that increases earned capacity rewards by 50% for the period August 1, 2024 through December 31, 2024 for a maximum of FLT 100,000 per eligible provider for the August 1, 2024 through December 31, 2024 period.

Eligible Providers

The following capacity providers have been active participants in the Fluence mainnet launch and are eligible for retroactive rewards for provided but uncompensated capacity as well as the support and operation of IPC validators:

  • PiKNiK, 1,200 cores, 2 validators
  • Nebula, 600 cores, 1 validators
  • Origin, 600 cores, 0 validators
  • Filmine, 1,200 cores, 1 validators
  • Vault32, 600 cores, 1 validators

Reward Periods

The retroactive reward period is for five (5) months covering the mainnet period March through July 2024.

The proactive reward period runs for five (5) months from August 1, 2024 through December 31, 2024.

Reward Structure

  • Each eligible core receives a retroactive reward off FLT 80 for the period of March - July 2024. Rewards are payable three months after the end of the compensation period on November 1, 2024.
  • Each eligible validator instance receives a retroactive reward of FLT 1,500 for the period of March - July 2-24. Rewards are payable three months after the end of the compensation period on November 1, 2024.
  • Each eligible provider receives a 50% bonus on their FLT capacity rewards for the period from August 1, 2024 through December 31, 2024. Rewards are capped at 100,000 FLT for the period and payable January 2, 2024.

Reward Allocation And Distribution Terms

  • The retroactive FLT awards amount to
    • 336,000 FLT for a total of 4,200 CUs at FLT 80/CU
      • PiKNiK. : 1,200 cores x FLT 80 = FLT 96,000
      • Nebula. : 600 cores x FLT 80 = FLT 48,000
      • Origin. : 600 cores x FLT 80 = FLT 48,000
      • Filmine : 1,200 cores x FLT 80 = FLT 96,000
      • Vault32 : 600 cores x FLT 80 = FLT 48,000
    • 5,000 FLT for a total of five (5) validators at FLT 1,000/validator
      • PiKNiK. : 2 validators X FLT 1,000 = FLT 2,000
      • Nebula. : 1 validators X FLT 1,000 = FLT 1,000
      • Filmine : 1 validators X FLT 1,000 = FLT 1,000
      • Vault32 : 1 validators X FLT 1,000 = FLT 1,000

For a total of FLT 341,000.

Retroactive rewards are distributed on a per provider basis and distributed three months after the end of the accrual period. That is, individual provider payouts will occur on November 1, 2024.

The total proactive FLT award is limited to a maximum of 100,000 FLT per eligible provider for the entire period ranging from August 1, 2024 to December 31, 2024. The proactive reward is dispersed by the DAO as a lump sum to each eligible provider on January 15, 2025.

Reward Distribution Schedule

Retro Rewards

Period covered: March 1, 2024 through July 31, 2024

Purpose: Reimburse capacity launch partners for provided capacity unable to be used due to delays in marketplace as well as the operation of validators

Amount: 341,000 FLT

Distributed at: November 1, 2024

Proactive Rewards

Period covered: August 1, 2024 through December 31, 2024

Purpose: Augment retroactive rewards for lost rewards allocations with additional capacity commitment rewards

Amount: 500,000 FLT maximum

Distributed at: January 15, 2025

1 Like
3

Fully agree to the compensation request and the proposed solution. I would like to correct that Nextweb is missing on the eligible providers list in the proposed solution.

4

so sorry. i’ll update in a bit.

5

updated proposal:
This proposal initiates the distribution of tokens for foregone revenue to Fluence capacity providers actively reserving server capacity to the Fluence mainnet launch but unable to receive capacity rewards. A two-tier reward structure is proposed to make early providers whole:

  • A retroactive reward component to compensate eligible provider capacity in FLT, subject to a three months lockup period, for committed but unused capacity for the extended launch period from March 2024 through July 2024.
  • A retroactive reward component to compensate providers for operating and managing IPC validators
  • A proactive reward component that increases earned capacity rewards by 50% for the period August 1, 2024 through December 31, 2024 for a maximum of FLT 100,000 per eligible provider for the August 1, 2024 through December 31, 2024 period.

Eligible Providers

The following capacity providers have been active participants in the Fluence mainnet launch and are eligible for retroactive rewards for provided but uncompensated capacity as well as the support and operation of IPC validators:

  • PiKNiK, 1,200 cores, 1 validators
  • Nebula, 600 cores, 1 validators
  • Origin, 600 cores, 0 validators
  • Filmine, 1,200 cores, 1 validators
  • Vault32, 600 cores, 1 validators
  • Nextweb, 320 cores, 1 validator

Reward Periods

The retroactive reward period is for five (5) months covering the mainnet period March through July 2024.

The proactive reward period runs for five (5) months from August 1, 2024 through December 31, 2024.

Reward Structure

  • Each eligible core receives a retroactive reward off FLT 80 for the period of March - July 2024. Rewards are payable three months after the end of the compensation period on November 1, 2024.
  • Each eligible validator instance receives a retroactive reward of FLT 1,500 for the period of March - July 2-24. Rewards are payable three months after the end of the compensation period on November 1, 2024.
  • Each eligible provider receives a 50% bonus on their FLT capacity rewards for the period from August 1, 2024 through December 31, 2024. Rewards are capped at 100,000 FLT for the period and payable January 2, 2024.

Reward Allocation And Distribution Terms

  • The retroactive FLT awards amount to
    • 336,000 FLT for a total of 4,200 CUs at FLT 80/CU
      • PiKNiK : 1,200 cores x FLT 80 = FLT 96,000
      • Nebula : 600 cores x FLT 80 = FLT 48,000
      • Origin : 600 cores x FLT 80 = FLT 48,000
      • Filmine : 1,200 cores x FLT 80 = FLT 96,000
      • Vault32 : 600 cores x FLT 80 = FLT 48,000
      • Nextweb : 320 cores x FLT 80 = FLT 25,600
    • 5,000 FLT for a total of five (5) validators at FLT 1,000/validator
      • PiKNiK : 2 validators X FLT 1,000 = FLT 1,000
      • Nebula : 1 validators X FLT 1,000 = FLT 1,000
      • Filmine : 1 validators X FLT 1,000 = FLT 1,000
      • Vault32 : 1 validators X FLT 1,000 = FLT 1,000
      • Nextweb : 1 validators X FLT 1,000 = FLT 1,000

For a total of FLT 366,600.

Retroactive rewards are distributed on a per provider basis and distributed three months after the end of the accrual period. That is, individual provider payouts will occur on November 1, 2024.

The total proactive FLT award is limited to a maximum of 100,000 FLT per eligible provider for the entire period ranging from August 1, 2024 to December 31, 2024. The proactive reward is dispersed by the DAO as a lump sum to each eligible provider on January 15, 2025.

Reward Distribution Schedule

Retro Rewards

Period covered: March 1, 2024 through July 31, 2024

Purpose: Reimburse capacity launch partners for provided capacity unable to be used due to delays in marketplace as well as the operation of validators

Amount: 366,600 FLT

Distributed at: November 1, 2024

Proactive Rewards

Period covered: August 1, 2024 through December 31, 2024

Purpose: Augment retroactive rewards for lost rewards allocations with additional capacity commitment rewards

Amount: 600,000 FLT maximum

Distributed at: January 15, 2025

6

Proposal submitted and voted.