$LOOPIN Tokenomics

1. Overview

The $LOOPIN token is the core cryptocurrency and protocol token of the LooPIN protocol, primarily serving as the incentive mechanism within the LooPIN ecosystem. The token is designed to facilitate the seamless exchange of computing resources and promote the efficient utilization of GPU power across the network.

2. Token Fundamentals

2.1 Token Addresses

• Solana Token Address: CHX3FSxGYSJ2LHeQTcGp2oMAoBNngtJ73jsuamMUnZQx
• Ethereum Token Address: 0x975dA7b2325F815F1dE23C8B68f721fb483B8071

Bridge Addresses

• Solana NTT Bridge: nTtyAzdYmpLwAWGWCK3PFqfrsKaPpZgbghy7qiqDb7H
• Ethereum NTT Bridge: 0x6bE6CC3825f29EbBD014487B30512984b2C0cDf3

Burn Address

• Solana Token Burn Address: BuRNDNzpsdWyyj2pgwfYsdsuqjGuzk2R8t67tKPoUwP3

2.2 Launch Information

The initial launch of the $LOOPIN token occurred on the Solana devnet, migrating to Solana mainnet and Ethereum (Cross-chain bridge information), marking a pivotal step in our approach to a decentralized finance (DeFi) framework focused on GPU power sharing.

3. Tokenomics Model

3.1 Token Distribution

The distribution strategy for $LOOPIN tokens is designed to ensure maximum fairness and decentralization through a mining-based approach:

• 100% to Mining: The entire token supply is distributed through mining, promoting a fair launch and widespread participation in the ecosystem.

3.2 Block Fee Allocation

• 70% to GPU Miners: The majority of block fees are returned to the miners, rewarding their crucial role in infrastructure support and network stability.
• 20% to Ecosystem Development:
  • Stored in the foundation wallet
  • Used for exchange listings, donations, and ecosystem support
  • Controlled by DAO voting for each expenditure
• 10% to the Team: Supporting core developers of the PinFi protocol (Lock for 5 years)

3.3 Token Supply and Emission

• Max Supply: 73,000,000 $LOOPIN tokens
• Daily Emission: 100,000 $LOOPIN (halves yearly)
• Distribution:
  • 70% to Community
  • 20% to Foundation
  • 10% to Team

3.4 Emission Schedule Visualization

The following chart shows the daily token emission schedule and distribution:

Daily Token Emission

Showing emission from 4/9/2024 to 4/9/2029

Today's Emission

Community:70,000

Foundation:20,000

Team:10,000

4. Token Utility

The $LOOPIN token serves multiple purposes within the ecosystem:

• Staking: GPU providers can stake tokens to participate in network validation and earn rewards
• Governance: Token holders can vote on proposals that influence the development and operational aspects of the network

5. PoCPS (Proof-of-Computing-Power-Staking)

While the original PoCPS is a robust Proof of Work (PoW) algorithm designed to prevent several major attack vectors, it does not address the critical needs of stability, scalability, or privacy. To tackle these challenges while maintaining the PoW foundation of our protocol, we've extended the original PoCPS framework to include:

$$\text{PoCPS} = \text{PoT}\times\text{PoL}\times\text{PoP}\times\text{PoW}$$

Where:

• PoT (Proof-of-Time) addresses time-based stability testing,
• PoL (Proof-of-Loyalty) focuses on liquidity management and control,
• PoP (Proof-of-Privacy) enhances privacy safeguards for user data, and
• PoW (Proof-of-Work) represents the original PoCPS proposed in our whitepaper.

This new structure aims to improve stability, scalability, and privacy while preserving the core elements of our protocol.

The PoT, PoL, PoP, and PoW can be defined as follows:

PoT (Proof-of-Time): The Proof-of-Time rewards are based on how long a node has been part of the protocol. The longer a node remains active, the greater the rewards it can earn, capped by the number of nodes in the network. The formula for PoT is:

$$\text{PoT} = \exp\left[\alpha\frac{\min(0, t-T_0)}{T_0}\right]$$

Where

• $t$ is the time the node has been in the protocol,
• $T_0$ is the ramp-up period after which a node receives full rewards,
• $\alpha$ determines the rewards for new nodes.

Currently,

• $\alpha = 2.303$ meaning that a newly added node can earn 10% of the total rewards until $t \geq T_0$, and
• $T_0 = 30$ days in the main net phase.

PoL (Proof-of-Loyalty): The Proof-of-Loyalty is related to how much of the LooPIN token the node has sold. Nodes that sell more tokens show lower loyalty and thus receive lower rewards. The formula for PoL is:

$$\text{PoL} = \exp\left[\beta\frac{\min(0, C_{\text{\tiny held}} - C_{\text{\tiny minted}})}{C_{\text{\tiny minted}}}\right]$$

Where

• $C_{\text{\tiny held}}$ is the current amount of LooPIN tokens held by the node,
• $C_{\text{\tiny minted}}$ is the total amount of LooPIN tokens minted by the node over its lifespan,
• $\beta$ controls the reward reduction for nodes that have sold a significant portion of their tokens.

Currently $\beta = 7.324$.

PoP (Proof-of-Privacy): The Proof-of-Privacy rewards nodes based on how well they protect user data. Nodes that maintain higher privacy standards receive higher rewards. The formula for PoP is:

$$\text{PoP} = \exp\left[\gamma\frac{\min(0, P - P_{\text{\tiny limit}})}{P_{\text{\tiny limit}}}\right]$$

Where

• $P$ is the node's privacy level,
• $P_{\text{\tiny limit}}$ is the benchmark privacy level,
• $\gamma$ determines the reward reduction for nodes with lower privacy standards.

Currently $\gamma = \alpha = 2.303$.

PoW (Proof-of-Work): The Proof-of-Work rewards are based on the performance of the node compared to similar GPUs in the network. Nodes with better performance receive higher rewards. The formula for PoW is:

$$\text{PoW} = \exp\left[\delta\frac{\min(0, W - W_{\text{\tiny benchmark}})}{W_{\text{\tiny benchmark}}}\right]$$

Where

• $W$ is the performance level of the node,
• $W_{\text{\tiny benchmark}}$ is the benchmark performance level,
• $\delta$ determines the reward reduction for underperforming nodes.

Currently $\delta = \beta = 7.324$.

6. GPU Staking Rewards

GPU Staking Rewards

Daily rewards calculation for different GPU models

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$LOOPIN Hold: 100%PoL: 100.0%

Alternatively, loopinrewards.ddns.net is a community-contributed tool by mod Stef to calculate potential GPU mining rewards. This unofficial tool provides real-time estimates of monthly earnings based on current Loopin prices and includes interactive charts for daily rewards visualization. (As a community contribution, use at your own discretion.)

7. Official Wallet Addresses (Solana)

• Treasury Address: 9TP5HkgZSN3KwhsvhssRpviNFVtAAupPXcz6dJSbCnxq
• Team Address: 6Vdj3NL7K3Mpum1oo5KZ6VLjaxi6QmHdAyFBkaf84ZQG
• Foundation Address: Cibq6gDmMxH7Xj6NHE7F3t8UgpwyPb7U1M258SrC7tbF

8. Market Metrics

You can track $LOOPIN's market metrics on:

• Solscan - Current Supply and Holders
• DexScreener - Real-time Price and Trading Activity
• CoinGecko - Market Data and Analytics

How to Calculate FDV and Market Cap

Fully Diluted Valuation (FDV)

FDV = 73,000,000 (max supply) × Current Price

Market Capitalization (MC)

MC = Current Supply × 0.7 × Current Price