Cognibit Token Utility And Incentive ($CBT)

Core token utility and mechanics

The CBT token serves as the foundation of our ecosystem with utility functions:

1. Computational Resource Allocation

   • Users stake CBT to access computational/processing resources on the network, like storage and more advanced tools.

   • Higher stakes receive priority processing during peak demand.

   • Service fees for network activities are paid in CBT, creating consistent demand.

2. Validators

   • Validators must stake CBT to participate in consensus (minimum amount of 100 CBT depending on the tiers/levels of validation). Stake anount is being linearly halved as more validators come onboard

   • Rewards scale with both stake size and computational contribution

   • "Proof of Cognitive Work" rewards are distributed proportionally to useful computation provided

   • Slashing conditions apply for malicious behavior or extended downtime

1. Contributor Incentives

   • Data scientists(developers, LLM contributors) receive royalties in CBT when their models are utilized

   • Bounty system for solving specific technical challenges or optimizations

   • Grant pool (10% of total supply) allocated to fund core development and research

Token Distribution and Supply Mechanics.

Total Supply: 100 million $CBT

• Initial Distribution (Ecosystem Bootstrap) (30%)

  • Presale: 25% (full-unlock zero vesting)

  • Community airdrop to early adopters: 5%

• Ecosystem Growth (30%)

  • Validator rewards: 20% (released over 3 years with diminishing emission)

  • Contributor incentives: 5% (Revenue sharing not included)

  • Integration and partnership grants: 5%

• Treasury and Governance (15%)

  • Protocol-owned liquidity: 5%

  • Governance-controlled treasury: 5%

  • Emergency and team reserve: 5% (3 years vested, 6 months cliff)

• Exchange Listing Allocation (10%)

Token supply Mechanics

1. Deflationary Burns: 15% of all network tokens are permanently burned

2. Buyback Program: 20% of treasury revenue used for open market purchases during specific windows

3. Stake-to-Participate: Token lockups required for various network activities

4. Dynamic Reward Adjustments: Validator and contributor rewards adjusted based on network usage metrics