Key points overview

Swan Chain launches an innovative Universal Basic Income (UBI) system, providing stable base income and market-driven rewards for computing providers (CP). The first UBI-0 phase will launch on October 29, 2024, with a reward pool of 1.2 million Swan tokens.

System Overview

In the wave of decentralized computing development, Swan Chain has pioneered a brand new provider incentive mechanism. The launch of the UBI system marks an important step in ensuring the sustainable development of the network and the fair distribution of tokens.

Income composition of computing providers

Swan Chain's economic model includes two complementary sources of income:

  • Universal Basic Income (UBI): A stable base income provided to computing providers during periods of low resource utilization

  • Task rewards: Income earned from completing actual computational tasks based on market demand

This dual-track system ensures the sustainable development of the ecosystem: providers can earn stable income during the network's growth phase while receiving more rewards as market demand increases.

Income calculation model

The daily total income of computing providers is calculated using the following formula:


I(x) = A·xᴮ·e⁻ᶜˣ·(1-u(x)) + Pmarket(x)·u(x)

The formula consists of two parts of income:

Task income Pmarket(x)·u(x)

  • Actual earnings from user-requested tasks

  • Calculated based on market prices and resource utilization

  • Typically higher than UBI income during periods of network activity

  • FCP can receive an additional 20% reward

UBI income A·xᴮ·e⁻ᶜˣ·(1-u(x))

  • Provide basic guarantees during low utilization periods

  • Automatically adjust based on network activity

  • A safety net for income assurance

Resource utilization rate u(x)

The network resource utilization calculation formula is u(x) = T_day / T_total, which balances UBI income and task income. During the UBI-0 phase, this ratio will be updated in real-time, directly impacting provider income.

For detailed income model description, please refer to: Swan Chain UBI compensation model: https://docs.swanchain.io/core-concepts/token/swan-universal-basic-income-ubi#compensation-model

UBI-0 launch plan

The first UBI plan (CP UBI-0) is an important milestone in the development of Swan Chain:

  • Time: October 29, 2024, to November 29, 2024 (EST)

  • Reward pool: 1.2 million Swan tokens

  • Participants: Edge Computing Providers (ECP) and Fog Computing Providers (FCP)

Participation requirements

Edge Computing Provider (ECP) Responsibilities

  • Deploy and maintain nodes according to official documentation

  • Participate in daily zero-knowledge (ZK) verification tasks

  • Mining functionality coming soon

  • Maintain required staking amount and network performance

Important update: We have significantly optimized ECP operating costs. ZK proof submission fees have dropped to just 0.0000005 ETH each, a reduction of 95% from before.

Fog Computing Provider (FCP) Responsibilities

  • Follow the FCP exclusive deployment guide

  • Perform daily network health sampling tasks

  • Process diverse application deployment requests

  • Maintain staking requirements and ensure stable performance

How to participate

1. Acquire tokens

SWANU token contract address: 0x39cBBeaF88a91404618d45a16e0977Adab4d1Af1

  • Existing providers: Before the UBI-0 launch, the system will automatically deposit SWANU staking that matches GPU specifications into a custodial account. Please upgrade to computing provider v0.7.0 and use the computing-provider info command to check status: https://github.com/swanchain/go-computing-provider/releases/tag/v0.7.0

  • New providers and regular users: Apply for SWANU tokens through the official application form: https://docs.google.com/forms/d/e/1FAIpQLSdnd8H4ab1eBr0D4e2QBLvBRj6H_xo7C8gW8ItewvHJRzYVVg/viewform?usp=sf_link

2. Deploy nodes

  • FCP deployment documentation: https://docs.swanchain.io/bulders/computing-provider/fog-computing-provider-fcp

  • ECP deployment documentation: https://docs.swanchain.io/bulders/computing-provider/edge-computing-provider-ecp/ecp-setup

3. Stake tokens

  • Access the Swan Chain provider console (https://provider.swanchain.io/overview) to complete staking

  • View detailed staking documentation: https://docs.swanchain.io/core-concepts/token/computing-provider-collateral/collateral-requirement-and-earning-multiplier

Note: The staking requirements for a single GPU will be dynamically adjusted based on network computing power. Upcoming console features will include trend visualization tools for the relationship between computing units and base staking.

4. Start earning income

Adopt a dual-income structure:

  • UBI rewards are directly issued to the beneficiary address daily

  • Additional income from completing network tasks is also issued directly

  • Real-time income tracking feature coming soon

Reward mechanism


Income composition

Reward calculation takes the following factors into account:

  • GPU specifications and quantity

  • Task completion performance

  • Resource availability indicators

  • Service quality indicators

Allocation Mechanism

Rewards are directly issued to the provider's beneficiary address, with daily settlements including UBI and task income. Final activity rewards will be included in total accumulated earnings, excluding the staking amount.

Important note: Keep the beneficiary address stable and hold SWANU tokens to ensure accurate calculation of rewards.

Operational Guidelines

Token Management

SWANU tokens will be automatically transferred to a custodial account (ECP and FCP separately) as a UBI qualification certification and order reception margin.


Anti-cheating measures

If computing providers try to artificially increase task volume to benefit from UBI income, this will not increase earnings. Instead, it will lower the success rate of baseline tasks, ultimately reducing total income.


Income Maximization Strategy

  • Maintain continuous resource availability

  • Provide high-quality services

  • Prioritize user actual tasks

  • Maintain a good task completion rate

  • Optimize resource utilization

Future outlook

Swan Chain's UBI system is not just a reward mechanism, but also the infrastructure for decentralized computing. By combining stable base income with market-driven opportunities, Swan Chain creates an ecosystem where providers can thrive.

Ready to become a computing provider? Visit Swan Chain's official documentation to start your journey.

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