Ratio1 Tokenomics: Decentralized AI Computing Through Edge Node Mining

The Ratio1 Protocol introduces an innovative tokenomics model where $R1 token distribution occurs exclusively through decentralized Edge Node mining, leveraging both Proof of Availability (PoA) and Proof of AI (PoAI) consensus mechanisms. This architecture ensures that every license holder must operate a functional and accessible Ratio1 Edge Node to participate in the network's token generation process.

Three-Tier License Structure

The protocol operates through a carefully designed three-tier licensing system, each serving distinct roles within the ecosystem:

Genesis Node Deed (GND)

The Genesis Node Deed represents the foundational compute infrastructure of the Ratio1 Protocol, exclusively held by the Ratio1 Foundation. This unique license activates "edge node zero" and controls 28.9% of the total token allocation, distributed over a 12-month emission period. The GND serves as the cornerstone for launching the entire Ratio1 ecosystem and generating tokens for publicly disclosed Foundation pools.

Master Node Deed (MND)

Master Node Deeds are specialized licenses allocated to the development team and initial investors, representing 26.1% of the protocol's total supply. These licenses feature an extended vesting schedule of 30 months, commencing in January 2026. MND holders operate oracle nodes that support core ecosystem functions, but importantly, they cannot participate in Proof of AI mining - all their computational workloads are provided without compensation to benefit the broader community.

Node Deed (ND)

Standard Node Deeds constitute the primary public participation mechanism, representing 45% of the overall protocol allocation. Each ND carries a fixed allocation of 1,575 tokens, mineable over 36 months from the moment the associated Ratio1 Edge Node becomes operational. Unlike MND licenses, ND holders can execute paid computational jobs and earn rewards through both Proof of Availability and Proof of AI mechanisms.

Consensus Innovation: PoA and PoAI Integration

The Ratio1 Protocol combines traditional Proof of Authority consensus with the emerging Proof of AI mechanism. While Proof of Authority typically relies on identity and reputation-based validation for fast, efficient consensus, Ratio1's implementation of Proof of AI represents a cutting-edge approach where nodes validate their integrity through compute-intensive AI training tasks. This dual-consensus model ensures both network security and meaningful AI computational work, directing verification resources toward valuable AI applications rather than arbitrary computational puzzles.

Economic Incentive Alignment

The tokenomics structure creates distinct economic incentives across license types. ND license holders benefit from both network availability rewards and AI computational job payments, encouraging active participation in the decentralized compute network. Conversely, MND holders contribute their computational resources freely to support network infrastructure, with their compensation coming solely from their allocated token vesting schedule. This design ensures that founders and early investors remain committed to long-term network health while allowing public participants to earn from productive AI workloads.

The protocol's total supply of 161,803,398 tokens reflects the mathematical inspiration drawn from the Golden Ratio, emphasizing the project's commitment to balanced, sustainable growth. Through this comprehensive tokenomics framework, Ratio1 establishes a robust foundation for democratizing AI computing resources while maintaining network security and operational efficiency.