Tokenomics& Incentives

Noosphere AI’s ecosystem is powered by the $NOS token, a multi-utility asset designed to align incentives among contributors, validators, and users while ensuring sustainable growth.

5.1 Token Utility

The $NOS token serves three core functions:

Use Case	Mechanism	Example
Governance	Holders stake $NOS to vote on protocol upgrades, funding proposals, and knowledge validation rules.	A researcher proposes a new data schema; stakeholders vote via Snapshot.
Validation Rewards	Users earn $NOS for contributing high-quality data, resolving disputes, or maintaining graph nodes.	Annotating a misclassified concept earns 10 $NOS.
Access & Payments	Unlocks premium features (e.g., private sub-graphs, API calls) or pays for third-party services.	A lab pays 500 $NOS/month to host a private research hub.

5.2 Token Distribution

• Total Supply: 1 billion $NOS (fixed, no inflation).

• Allocation:

Category	Percentage	Vesting Schedule	Purpose
Community	80%	10% at TGE; linear vesting over 4 years.	Grants, bounties, and liquidity mining.
Core Team	5%	1-year cliff; 3-year linear vesting.	Retain talent and align long-term goals.
Ecosystem Fund	5%	Released quarterly based on roadmap milestones.	Partnerships, integrations, and R&D.
Reserves	5%	Locked for 2 years; emergency use only.	Market stability or strategic acquisitions.
Advisors	5%	6-month cliff; 2-year linear vesting.	Reward early supporters and experts.

5.3 Incentive Mechanisms

• Knowledge Mining:

• Users earn $NOS for:

• Adding structured data (e.g., linking concepts with citations).

• Validating/correcting others’ contributions (via staking).

• Curating niche sub-graphs (e.g., medical research).

• Rewards adjust dynamically based on scarcity and reputation scores.

• Staking for Security:

• Node operators stake $NOS to participate in federated learning rounds.

• Slashing penalties apply for malicious actors (e.g., submitting false data).

• Burn Mechanisms:

• 5% of $NOS spent on API calls or premium features is burned, creating deflationary pressure.

5.4 Economic Model

• Demand Drivers:

• Adoption: Enterprises pay $NOS to access industry-specific knowledge graphs.

• Scarcity: Burning tokens + vesting schedules reduce circulating supply.

• Speculation: Tradable on DEXs/CEXs with liquidity pools incentivized by rewards.

• Price Stability:

• Treasury: 10% of transaction fees fund buybacks during volatility.

• Balanced Emissions: 70% of rewards are locked for 6 months to prevent dumping.

5.5 Example Scenarios

1. Academic Researcher:

2. Earns 1,000 $NOS/month for annotating AI ethics papers.

3. Spends 200 $NOS to access a private neuroscience sub-graph.

4. Enterprise Client:

5. Stakes 50,000 $NOS to vote on governance proposals.

6. Receives discounts for bulk API calls (paid in $NOS).