The Render Network has introduced a sophisticated operational structure centered around its Burn-Mint Equilibrium (BME) model, as detailed in the Render Network Proposal (RNP-001). This innovative model ensures that for each job processed, an equivalent value of the RENDER token is burned, with a 5% service fee allocated for network operations.
The BME model, implemented through RNP-001, stipulates that every job priced in USD leads to the corresponding destruction of RENDER tokens. This mechanism is integral to the network”s mission of balancing token supply and demand. Additionally, emissions are capped, with a fixed quantity of tokens minted per epoch. A portion of these minted tokens is designated for funding the Foundation”s operational activities and initiatives aimed at ecosystem growth.
Operational activities within the network encompass job processing, grant issuance, and node rewards management. The 5% network service provider fee is paid to OTOY, responsible for maintaining infrastructure. The Foundation manages its operations separately, receiving emissions funding to support various projects. All transactions within both the Foundation and the Network are carefully documented, promoting transparency and operational efficiency.
In terms of treasury management, the Render Network employs a multi-wallet treasury system to handle funds across various currencies. This structure facilitates efficient operations, allowing for currency conversions as necessary to support both Foundation and network activities. While certain operations may require conversion to fiat or USDC, others can be executed directly in RENDER, minimizing unnecessary transactions.
Aligned with RNP-001, jobs paid in fiat currencies are allocated for burning an equivalent amount of RENDER. Initially, the network conducted direct burns, but it has transitioned to utilizing the Jupiter decentralized exchange for converting fiat to RENDER for burning. Recent changes have reverted to direct burns, enhancing cost efficiency and streamlining treasury movements.
To optimize system efficiency, payments for jobs are frequently batched prior to burning. This method reduces transaction-related costs and mitigates market impact. On-chain transactions may appear as either direct burns or swaps, based on the specific batch and transaction type. The network guarantees that each job, irrespective of its payment method, is accounted for in RENDER and subsequently burned.
Overall, the operations and economic frameworks of the Render Network are meticulously designed to cultivate a balanced and effective ecosystem, bolstering both network growth and the needs of its participants.
