What is NetMind Power? NMT tokenomics explained

Artificial Intelligence and GPUs. Imagine a blockchain that creates a global network of computing power for AI models by utilizing the idle GPUs of users worldwide.

This is where NetMind Power comes into play!

NetMind Power is a layer-1 blockchain platform powered by a global GPU network, with a focus on machine learning technologies.

At its core, NetMind can be considered an intermediary between those who need GPU power for projects and those who have idle GPU power sitting around.

Meaning, if you need additional computing power for a project, such as rendering large media files or creating AI training models, or if you have old computer graphics cards sitting around and would like to earn some extra cash, NetMind can help.

But how exactly does it do that? Today we find out.

What is NetMind Power?

In a single sentence, NetMind’s vision could be described as establishing a global network of hirable computing power which harnesses the idle GPUs of users worldwide.

If you’ve ever used an audio or visual digital workstation, such as Adobe, Cubase, Blender, etc, then you know how long it can take to render an image you’ve just created.

For those who haven’t used such software, rendering is creating the image, video, or sound in your digital workstation and exporting it so you can view it outside of the program it was made.

Typically, rendering is a slow, laborious process.

Wouldn’t it be convenient to hire someone else’s idle GPU power so you could render your project quicker?

Well, enter NetMind.

NetMind was created by Kai Zou in 2021, who also acts as their CEO.

Through NetMind’s platform, users who need GPU power can purchase from those with GPUs sitting idle.

That includes you, if you have old GPUs, there’s nothing stopping you from loading them up to a rig and offering to rent out your GPU power in exchange for NMT tokens.

Naturally, the amount of power your GPU provides will dictate how many NMT tokens you receive. But otherwise, there is nothing stopping anyone from getting involved.

How does NetMind work?

NetMind is simply the exchange where people who need – meet people who have, and utilises blockchain technology for its operations.

The NetMind Power network operates on its own blockchain, specifically the NetMind Chain, which governs and decentralises all network tasks, transactions, and functions on the platform.

At its core, NetMind offers a platform for extensive distributed computing, integrating diverse computing resources globally, and leveraging grid and voluntary computing scheduling architecture along with load-balancing technology.

Or, simply put, NetMind finds computing power for your processing needs and it will get it from anywhere it’s available.

NetMind Chain is based on Ethereum, though it is important to note a few differences.

First, NetMind Chain is its own layer-1 blockchain and it does not run on the Ethereum network, though the NetMind Chain was based on Ethereum for its design.

Second, although it’s based on Ethereum, it is not a Proof-of-Stake blockchain like Ethereum, but rather a Proof-of-Authority network instead.

To quickly explain the difference, Proof-of-Stake is a consensus mechanism used in blockchain networks where validators are chosen to create new blocks and validate transactions based on the number of tokens they hold and are willing to “stake”, meaning deposit, to the network as collateral.

Proof-of-Authority on the other hand is similar, however, the main difference is who can be a validator is more carefully selected by the network itself and usually isn’t open to everyone.

In NetMind’s case, who can become a validator, also known as a Mind Node, is still largely open to anyone. Though, the 21 nodes with the most tokens staked to them do gain the status of Master Node, which receives additional rewards for verifying transactions.

The main benefits of Proof-of-Authority here are that it significantly reduces energy consumption and maintenance costs while still ensuring security and decentralisation.

Like Ethereum, NetMind is smart contract compliant and utilises smart contracts to remove the need for human involvement on the network.

Additionally, although based primarily on Ethereum, it is compatible with other blockchain networks, with the Binance network being a notable example.

Is NetMind unique?

Admittedly, NetMind isn’t the only idle GPU tradesman in the crypto arena, with projects like Render also working in the space.

So, while it may not be the most unique blockchain, it doesn’t aim to be unique – it aims to offer the best platform for its use case.

The use case has such potential that whichever company perfects this is likely to see healthy gains, and given the rise of AI and computing-intensive media over the last couple of years, it seems likely that there will always be a need for idle GPUs moving forward.

NMT Tokenomics

In total, there will only ever be 147.5 million NMT tokens, all of which are currently held within a smart contract that gradually releases its holdings as per their planning distribution.

NMT can be used for payments on the platform, as rewards for users who contribute their idle GPU resources to the network, staking, and governance.

By the time all 147.5 million NMT tokens are released, the token distribution will look as follows:

39% of the total supply is allocated as the Mining Rewards for providers of computational power to the network, used for GPU rental, training and inference.

23.4% was allocated to circulation in the first year of the project, based on the old version of tokenomics.

11.2% is allocated to the Ecosystem Growth Fund, another 11.2% is allocated as Staking Rewards.

6.8% is reserved for the NetMind team, 5.1% is reserved for Strategic Investors & Advisors and finally the last 3.3% is allocated to Early GPU Contributors.

Is NetMind worth it?

NetMind Power looks to solve a problem and has built the platform to facilitate it.

By providing a marketplace for buyers and sellers to trade in GPU power, they are at the front of this next wave of innovation.

It seems likely that as the years progress, more companies will require more processing power to complete their projects.

By being the supplier that provides these large companies with the additional GPU power they need, NetMind Power has set itself up nicely for the future.

Naturally, expert management from the top will be required to ensure they outcompete their competitors in the space and remain relevant, but assuming management doesn’t make any significant mistakes it currently seems likely that NetMind Power’s best days still lay ahead.

Though, as always, nothing is ever guaranteed in crypto, of course.

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