Premium Circuits
Custom Circuits
While the Anyone project remains focused on network growth and user adoption – the Anyone Network is free to use on launch - a framework for revenue generation within the protocol is a key part of the roadmap. As the network evolves and enterprise and high-throughput use-cases emerge, the token will be used as a mode of payment for these use-cases. More broadly, the token will take on a load balancing role within the network.
The Anyone payment mechanism will be complementary to custom circuits in the network. Clients (users running the anon program or services using the light client SDK) will be able to build a circuit that optimizes any number of heuristics, for example:
Lag (prioritizing relays with minimum latency between hops), throughput (relays with high advertised bandwidth)
Reliability (relays with a proven history of uptime)
Specific IP outputs (choosing exit relays in specific locations)
Reduced deanonymization surface (relays either in the same or different ISP tiers depending on adversary)
and more. In doing so, the network as a whole can help enterprises hit their SLAs and broaden the range of applications built on it. This process is outlined in the Whitepaper.
Premium Node Rewards
Naturally, relays that match the chosen criteria consistently for a large number of users will find its available bandwidth being used more. In the premium model, when a relay hits a high enough utilization rate (the proportion of its available uptime when it is actively relaying real traffic), the relay is added to a transient list of 'premium relays'. Users then need to pay a subscription fee to access these relays and have the ability to build circuits through them.
Clients who then acquire tickets are not limited to only choosing premium relays; they can select a combination of all existing relays to hit their criteria, which reduces the risk of being easier to identify. Critically, the fact that clients submit their preferred criteria when purchasing tickets means that the list of ‘premium’ relays keeps changing. It is a list based on a rolling average of demand - as certain types of relays spike up in demand and multiple parties would pay to ensure access, they are added to the premium list at an accelerated rate. Clients can also include the option to acquire premium tickets depending on their criteria for relays and their relative availability, preventing unnecessary spending. Enterprises or those with strict SLAs may constantly remain on a ticketed tier.
From a relay perspective, they can earn extra rewards for being part of the premium set of relays by taking in part of the user payments.
Point Accrual Based on Service Demand
Demand-Driven Price Adjustment: When criteria for a node consistently exceeds 90%, it is considered to be in high demand and enters the set of premium relays. The introduction of pricing is directly tied to the node's demonstrated reliability and performance against genuine paid demand, reflecting its premium status.
Accelerated Point Accumulation: As the price per ticket increases due to sustained high demand, the rate at which the premium relay node operator accrues points also increases. This provides a direct incentive for operators to maintain high levels of service quality and availability.
Reward Distribution from Premium Services
Funds generated from premium services are allocated as follows to support the network's growth and sustainability:
50% to Premium Node Operators: Half of the collected premium fees are distributed back to the operators through the point system, rewarding them directly for their contributions to the network.
35% to Reward Pools: A significant portion is directed to the network's treasury to replenish and sustain the reward pools, including those for relay operators and Bandwidth Authorities, ensuring long-term operational funding.
15% Burn: To maintain a deflationary pressure on the $ANYONE supply and enhance token value, 15% of the premium fees are permanently removed from circulation.
Implementation Considerations
Transparency and Fairness: The point system and reward calculations need to be transparent and accessible to all network participants to ensure fairness and maintain trust within the ecosystem.
User Interface for Claiming: The claiming portal must be user-friendly, allowing for easy access and minimal transaction costs (gas fees) for operators claiming their rewards.
Adjustable Percentage Allocations: While the initial allocation percentages are set, they remain tentative and subject to adjustment based on network growth, economic conditions, and community feedback.
The revised reward system for premium node operators in the Anyone Network introduces a more streamlined, transparent, and economically sustainable model. By linking rewards directly to service quality and network contribution, and by ensuring a deflationary mechanism through token burns, the network aims to foster a competitive, high-performance environment that benefits all stakeholders. This new system not only incentivizes excellence in service provision but also aligns with the network's broader goals of scalability, security, and decentralization.
Motivation and Justifications for Premium Node Rewards
1. Motivation for Enhancing Rewards for High-Performance Relays
Value Recognition: Premium node operators who consistently demonstrate high performance and reliability are crucial assets to the Anyone Network. By providing them with additional yield opportunities, the network acknowledges their significant contribution to its overall functionality and user satisfaction. This reward system ensures that top-performing nodes are incentivized to maintain, if not enhance, their service quality.
Driving Network Excellence: The enhanced rewards act as a motivator for all node operators to strive for excellence. This creates a competitive environment where operators are encouraged to upgrade and optimize their infrastructure to meet and exceed the high-demand criteria, thus raising the overall standards of the network.
2. Justification for Treasury Replenishment from Premium Payments
Sustainability of Reward Pools: As the initial supply for rewards begins to dwindle, integrating a mechanism to replenish the treasury from premium service payments ensures the longevity and financial health of the reward system. Allocating 35% of premium payments to this end supports a gradual transition to a self-sustaining economic model where the ecosystem can continue to thrive without external financial injections.
Long-Term Economic Stability: By reinvesting a portion of the income into the network, Anyone not only secures future operational funding but also reinforces the commitment to continuous improvement and expansion of services.
3. Rationale for Implementing a Burn Mechanism
Deflationary Pressure: Burning 15% of the premium payments contributes to reducing the overall token supply, which can help increase or stabilize the value of $ANYONE tokens over time. This deflationary strategy supports a healthy token economy by potentially enhancing token scarcity and value.
Community Confidence and Narrative: A clear and easily understandable burn mechanism enhances transparency and can be a compelling narrative for the community and investors, illustrating the network's commitment to creating value for token holders.
4. Prevention of System Gaming by Premium Relays
Economic Disincentives: The current economic structure ensures that it is not financially beneficial for premium relay operators to manipulate the system by running paid traffic through their own nodes. The reward-to-cost ratio is designed such that genuine performance is more profitable than attempting to game the system, promoting fair play and integrity within the ecosystem.
5. Adoption of a Point System for Reward Claims
Simplicity and Accessibility: Utilizing a point system for tracking and redeeming rewards simplifies the process for operators, making it easy to understand and engage with. This system allows operators to see a direct correlation between their performance and their earnings, enhancing transparency and trust.
Cost Efficiency for the Network: By requiring users to pay for their own gas fees when claiming rewards, the network can minimize operational costs associated with transaction processing. This approach helps maintain lower expenses for the network while promoting responsibility among participants.
6. Encouraging Superior Service through Demand-Driven Rewards
Incentive for High-Quality Relays: By allowing nodes that are in over-demand to earn more, the network effectively encourages operators to invest in and maintain high-quality services. This not only improves user experience but also aligns with the network’s goals of providing exceptional service quality.
Market-Driven Performance Incentives: The ability for nodes to charge more as demand increases creates a market-driven incentive for excellence. This dynamic pricing model ensures that operators are rewarded in proportion to the value they provide to the network, fostering a meritocratic ecosystem.
These motivations and justifications are designed to ensure that the premium node reward system within the Anyone Network is effective, equitable, and aligned with the long-term strategic goals of scalability, security, and decentralization.
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