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description: Fueling the Nebula AI Ecosystem
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# $NAI

#### Designed to power our decentralized GPU marketplace. $NAI facilitates transactions within the platform, incentivizing both GPU lenders and renters to participate in our ecosystem.

## What is $NAI

$NAI is the cornerstone of Nebula AI, serving as the platform's primary currency. It enables users to handle transactions within the ecosystem with enhanced security and efficiency, providing a stable medium of exchange that supports a variety of actions from GPU rental payments to reward distributions. $NAI will be launched without premining or ICO, a fairlaunch for our community

## Reward Structure

Earning $NAI is straightforward and rewarding; participants receive tokens by engaging with our services, whether by leasing out GPUs or utilizing the computational resources offered. The staking process is incentivized with periodic rewards that are adjusted based on network activity and the duration of tokens held, ensuring a fair and sustainable reward system that benefits all stakeholders.

See [Tokenomics](tokenomics) for further details on our staking architecture.

## Utility

$NAI transforms how users interact with our services, offering them the ability to pay for GPU rentals quickly while enjoying reduced transaction fees. Those who have idle GPUs can earn $NAI by leasing them out, thereby injecting liquidity into the market and ensuring a steady supply of available resources. $NAI holders can participate in staking protocols that not only validate transactions but also help in securing the network architecture, receiving staking rewards in return.

## **Reward Distribution and Sustainability**

The allocation of $NAI rewards is a foundational component of Nebula AI’s tokenomics, designed to ensure the long-term health and growth of our platform. Our reward structure is carefully balanced to support stakeholders.

* **Stakers**: 40% of the rewards, transaction fees and taxes are designated for stakers, who play a crucial role in maintaining the security and operational efficiency of the $NAI. This incentive is crucial to encourage ongoing participation and investment in the necessary computing resources to support network functions.
* **GPU Lenders**: 40% of the rewards are allocated to GPU lenders, the backbone of the Nebula marketplace. This substantial share ensures that those providing essential GPU resources are adequately compensated, encouraging both individual and institutional participants to contribute their idle computing power.&#x20;
* **Development and Innovation Fund**: The remaining 20% of rewards are reserved for the Nebula AI development team. These funds are earmarked for critical areas such as ongoing platform development, infrastructure maintenance, user support services, buybacks and innovation. This allocation ensures that Nebula AI can continue to evolve and improve, adding new features and capabilities that keep the platform at the cutting edge of blockchain and AI technologies.

## **Resistance and Decentralization**&#x20;

Nebula AI ensures that the process of mining or validating transactions is accessible to anyone with a consumer GPU. This approach prevents the dominance of specialized mining hardware, which is often expensive and concentrated in the hands of a few large-scale operations, thus promoting a more equitable distribution of power and rewards.

By leveraging a Proof of Nebula (PoN) mechanism, anyone with a standard GPU can participate in network maintenance, sidestepping the need for specialized mining hardware. This design prevents a concentration of power by distributing mining capabilities widely, allowing GPU owners to earn rewards by contributing to network security and efficiency, without the complexities of traditional mining setups.



