Payments & Utility
The FNET token is a key element of the Fishnet ecosystem.
Last updated
The FNET token is a key element of the Fishnet ecosystem.
Last updated
The underlying decentralized network, aleph.im, is using ALEPH as its utility token to allow users to pay for computing and storage services. In its current state, users can acquire these services by simply holding ALEPH tokens, in what is called the holder tier.
This requires the Fishnet DAO to acquire ALEPH to run its nodes and to acquire more to keep scaling. The initial network will contain roughly 15 executor nodes equaling 1.5 TB of distributed storage and will be able to scale to hundreds of nodes and terabytes of data. Each node will require roughly 15k ALEPH to be permanently and indefinitely online with aleph.im's holder tier. This equals to ~ 225k ALEPH initially required by the Fishnet DAO.
Due to these constraints, it is required that users cannot allocate more data than there is storage. Therefore, we need to set a limit tied to the stake of a user in the Fishnet DAO, which we can measure by their holdings of FNET. The DAO can set an FNET requirement like this:
Hold 10 FNET for each MB of data you host (= 10k FNET for each GiB)
If at any point the user does have more data uploaded than FNET staked, then this data is being garbage collected to free up space for other datasets.
The main business of Fishnet. Selling datasets through the built-in Fishnet Protocol will cost a 5% fee by default, but may be reduced by . This can be subject to change through DAO governance votes.
FNET serves not only as the currency used for hosting data on the Fishnet network. It is also required for accessing the Fishnet network, ensuring that only legitimate users and use cases are utilizing the network's resources.
Furthermore, it can be used to incentivize truthful behavior from data hosts by rewarding them with FNET for providing accurate and high-quality data.
Fishnet V1 is also using a holder tier for API and Fishnet Management Console access. The DAO will determine the required minimum FNET holdings for access, but to begin with, the following minimums will be set:
Hold 10k FNET to receive unlimited access to the Fishnet API
Later on, a pay-as-you-go model might be implemented where every request to the API counts as a transaction and can cost previously staked FNET accordingly.
Fee rebates are granted to all users holding a minimum amount of FNET:
200 bps rebate for users holding at least 100k FNET (3% fee)
300 bps rebate for users holding at least 1M FNET (2% fee)
400 bps rebate for users holding at least 10M FNET (1% fee)
Staking can be used to signal a commitment to protocol values, truthfulness, and quality of service.
A user who bought and analyzed a dataset may discover that it is indeed of high value. In this case, they can stake FNET to signal to the rest of the network that this dataset is of high value. This way, they can ensure two things:
That the dataset stays online, even if its original owner does not fulfill the required FNET holdings anymore.
Other users can see that this dataset is being trusted by someone willing to stake their FNET with it.
In return for staking FNET on the dataset, the user will get a share of the fees from subsequent sales of the dataset as a reward.
As the protocol matures, other use cases for FNET will emerge, and potential mechanisms for slashing FNET stakes will be evaluated. The Fishnet DAO needs to remain in control of the kind of data being hosted on its service and to allow only high-quality datasets to be persisted.