Access to Network Resources

Figure 1: Network Resources Flow in the ICN

This flowchart illustrates how Builders request capacity and provide ICNT tokens, which are collected in the Treasury.

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How Access to Network Resources are Calculated

• Capacity Request: Builders submit a request specifying:

  • Storage amount (e.g., 1PB).

  • Location (Cluster)

  • Duration of required storage.

• Pre-Assignment and Price Calculation:

  • Cluster Price: The price within a cluster is determined based on HP reservation prices

  • Max Cluster Price: A cap to ensure that pricing within clusters remains fair and accessible.

• Final ICNT Requirement Calculation:

  • After pre-assignment, the ICN protocol calculates the total ICNT requirement that an Builders must provide, factoring in the protocol margin.

• Formula: $\text{ICNT Requirement} = (1+\text{Protocol Margin})×\text{Cluster Price}$

  Protocol Margin: This is a small percentage retained by the protocol (e.g., 25%) to keep the network sustainability and maintenance. Example: If an Builder requests 1 PB of storage and the selected Cluster Price is 2,800 ICNT per PB, with a Protocol Margin of 25%, the Builders final ICNT access requirement will be: $3,500 \text{ ICNT per PB}=(1+0.25)×2,800$

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Distribution of Builders ICNT Access Requirements

The ICNT provided by Builders is collected in the Treasury. Allocations from the Treasury to various parts of the network are determined by governance decisions to ensure the network's smooth operation and adaptability:

• Reward Reserve: Based on governance decisions, a portion of the ICNT incoming to the Treasury are reallocated to the Reward Reserve. This reserve is responsible for distributing ICNT rewards to Hardware Providers (HPs) and HyperNodes for their services.

• Protocol Treasury: Another portion of the ICNT, as decided by governance, is allocated to the Protocol Treasury. This allocation supports network upkeep, development, and future use cases.

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For more information about how Builders interact with the network, see the Capacity Allocation page.