Incentives

NØDEs

0KN's decentralized infrastructure is powered by NØDEs including remote servers and physical hardware nodes. NØDEs receive rewards for their contributions to the network using a hybrid ZKProof of Staked Work consensus mechanism.

Staked 0KN Servers

0KN Servers are ultimately the fundamental blocks that make up the entire network. They play a crucial role in maintaining the security and integrity of both the proof-of-stake blockchain and the anonymous broadcast mixnet, creating a symbiotic relationship between the two functions. By fulfilling their responsibilities, the staked servers contribute to a decentralized, secure, and robust ecosystem that supports both blockchain transactions and anonymous communication services.

0KN Servers can become active on the network when their owner time-locks a specified fixed amount of $0KN tokens via a registration transaction on-chain. Under the current system design staked servers will receive a base 70% of block rewards with additional rewards belonging to different categories of average bandwidth they provide to the network.

Bandwidth

Bandwidth plays an important role in the efficiency and latency improvements of the network. A monitoring mechanism will exist to measure the average bandwidth staked servers provide to the network. They can earn extra block rewards on top the base 70% rate if they belong to more superior bandwidth categories.

Delegated Staking

Token holders who do not want to run their own staked servers due to hardware requirements or do not have the specified fixed amount to do so can delegate their tokens with other token holders to run staked servers on the network and earn staking rewards in groups of 4. This will enhance decentralization and scaling in the network.

Slashing

The blame and elimination protocol enables honest servers in the network to assign blame on servers acting maliciously and deviating from the protocol. Once a server is blamed for malicious behavior and eliminated from the network their stake will be entirely slashed and tokens will be burned.

Hardware NØDEs

0KN hardware NØDEs receive special rewards for providing enhancements to the 0KNetwork. In many cases, hardware NØDEs function as a type of server and receive rewards for servers. Like other 0KN rewards, hardware rewards use ZKProofs within 0KN's Application Chain to preserve privacy of individual hardware units and their human operators. Furthermore, rewards are opt-in, must be registered to a receiving account, and are subject to termination for malicious or unhealthy network behavior as determined by the decentralized protocol.

Incentive rewards unique to hardware nodes include ZKProof of:

• Unique & Authentic Device
• Network/Carrier Diversity
• Transmission Capability
• Geographic Diversity
• Deployment Diversity (public infra vs private)