RNP-006 Recap: Solana Upgrade and Network Incentives
Recapping the details of RNP-006 and next steps
Last Thursday, The Render Foundation released the latest Render Network proposal, RNP-006, which this week passed the initial community vote with 994K RNDR 99.84% to approve and 1.6K RNDR 0.16% to deny. It is now in Team Review before being submitted for final vote. In anticipation of the coming vote, this week’s Behind the Network (BTM) will explore RNP-006 in greater depth.
RNP-006 outlines the upgrade of the Render Network, transitioning the ERC-20 RNDR to a new “RENDER” SPL token, along with an overview of the network’s upgrade process and emissions incentives.
This proposal impacts every member of the Render Network community as it brings a significant shift in how transactions and rewards are managed within the network. The transition to the RENDER token and the integration of the Burn Mint Equilibrium (BME) model (as detailed in RNP-001: Burn-and-mint Equilibrium) are addressed in more detail in RNP-006.
What is RNP-006 All About?
RNP-006, falls under the core proposal category within the Technical subcategory. The proposal is designed to support the implementation of previous proposals RNP-001 and RNP-002: Layer 1 Network Expansion. The upgrade of the Render Network to a Solana-based SPL token is motivated by the need to leverage the low-cost, high-throughput transaction infrastructure offered by the Solana blockchain. This upgrade now enables the network to support a broader range of applications and services requested by users of the network.
The Upgrade to RENDER SPL tokens
The first element of RNP-006 details an upgrade assistant (available at upgrade.rendernetwork.com) that facilitates the seamless transition of RNDR ERC-20 tokens to RENDER SPL tokens. This assistant is designed to be user-friendly and permissionless to ensure a smooth upgrade process for all involved.
Access the Render Network Knowledge Base for a complete step-by-step guide on how to transfer your RNDR Tokens into RENDER (SOL). Also, check out this FAQ for any questions that you may have here around the upgrade.
Upgrade Rewards for RENDER SPL Token
RNP-006 outlines a reward system to incentivize expedient upgrades from ERC-20 RNDR to RENDER SPL tokens, enabling the network to become operational on Solana. Token holders who upgrade to the RENDER token will be grouped in increments. Future protocol benefits and rewards will be graduated based on the groups in the table below.
Along with the rollout of RNP-006, The Render Foundation announced an incentive program for the Render Network to support Compute Clients passed in RNP-004.
Up to 1.14M RENDER tokens will be distributed to Compute Client node operators, starting with the Network’s first Compute Client partner, io.net. Incentives issued — as RENDER SPL tokens — are part of an incentive model that includes both traditional Render Node Operators and new Compute Client nodes.
Of the 1.14M total tokens, 300,000 RENDER tokens are set aside to be distributed by December 31, 2023, providing a boost for node operators to join the network as Compute Clients.
Token holders who upgrade to the RENDER token will be categorized into groups (as outlined in the table above) with the system designed to progressively reward holders based on the volume of tokens upgraded. Whenever a holder upgrades their RNDR tokens, they receive an assigned number of points for each token upgraded until the total reaches 229,999,999 tokens. These points then determine the monthly RENDER token distribution for each holder, establishing an ecosystem where token holders are rewarded in line with their level of participation in the network.
Example: If 10,000,000 RNDR have been upgraded in month one, a wallet holder of 100,000 RENDER will receive 100,000 x 5 points = 500,000 points. 500,000 points divided by 50 million total points x 95,071 RENDER = 950.71 RENDER paid to that wallet at the end of month one. In month two, when more RNDR have been upgraded, the total points allocated will be higher and this wallet will receive a smaller proportion, and so on. This will go on for 12 months.
The Structure and Distribution of BME Emissions
Finally, RNP-006 provides increased detail on the distribution of emissions that are a part of the Burn and Mint Equilibrium (BME), detailing how emissions are split between different network participants including: Node Operators, Compute Client Partners, Artists and Liquidity Providers.
- The network will mint 9,126,804 RENDER tokens on the Network, representing the full first year emissions (outlined in RNP-001).
- This creation will result in 760,567 RENDER tokens distributed each month. Under RNP-003, 50% (380,284 RENDER) goes to the Network and 50% goes to the Render Foundation.
- Node operators will receive an initial 50% share of the Network’s monthly emissions, amounting to 190,142 RENDER tokens.
- In the first three months following the BME model’s launch, the remaining 190,141 RENDER tokens will be directed to a Liquidity rewards pool. For the next six months, this will be split so that 50% of this remainder (95,707 RENDER) will be allocated to the Liquidity rewards pool and 50% (95,707 RENDER) towards an Artists’ rewards pool. After that (9 months from BME deployment) all remaining Emissions will be distributed to the Artists rewards pool.
- To encourage onboarding of Compute Clients, up to 1.14 million RNDR tokens, representing 25% of the Foundation’s first-year emissions, are reserved for incentives. A minimum of 300,000 of these tokens are set aside to incentivize the integration of new consumer GPU Render nodes through the io.net Compute Client.
- A maximum of 1.14M RNDR tokens (25% of year 1 Foundation emissions) are allocated in year 1 for points-based incentives.
Community Feedback and Updates to RNP-006
RNP-006 is currently under review by the team with changes and updates being applied in response to input from the community.
Will the Render Foundation Earn Rewards?
Some of the feedback has been focused on whether the Render Foundation — via its ownership of RENDER SPL tokens — will participate in the emissions rewards and other upgrade incentives.
- In response to these questions, the Foundation has determined that it will introduce an opt out feature in the revised RNP-006 submitted for Final Vote. This Opt-Out mechanism will be used by the Foundation to opt out of participating in the network’s rewards programs.
Do Users Need to Continue Holding RENDER to Earn Rewards?
The question was raised about incentives if the community member transferred the RENDER to another wallet or used it during the 12-month incentive campaign.
The answer is, no. Users who upgrade will be paid out every month at the wallet address they upgraded to.
Compute Clients Rewards Addendum
For the first 300,000 RENDER Compute Client node rewards that are set aside to be distributed by December 31, 2023, a Rewards Mechanism model has been created outlining how RENDER SPL token rewards are distributed to nodes participating with the first Compute Client partner, io.net.
The Compute Client Node Rewards Mechanism can be viewed here.
Joining The Render | IO Net Compute Client
Nodes that are interested in participating in the io.net Compute Client rewards program should register for the Render Network waitlist and sign up to be a node on io.net — following these steps:
- Register for the Render Network waitlist at https://renderfoundation.com/waitlist
- Sign up to be a node at https://cloud.io.net/login
- After signing up, go to https://cloud.io.net/miner/devices or “Worker” from the top left dropdown to find the connect a new device.
During the io.net signup process, nodes will be asked if they are a Render Network node, and they should respond, yes. Only nodes on both the Render Network and the io.net waitlist will be eligible for Compute Client node rewards.
Please see the Qualifying Nodes section of the Compute Client Nodes Reward Mechanism for detailed requirements to be eligible for RENDER Compute Client node rewards.
Looking Ahead
RNP-006 has passed the initial community vote on Snapshot, and can be viewed here. The final vote will begin next week at the conclusion of Team Review, opening up RNP-006 to final vote.
The chain upgrade to an SPL token and incentive model captured in RNP-006 is part of the Render Network’s expansion to support a wider range of decentralized computing applications requested by users of the network. It aims to provide foundations to upgrade the Network from specialized 3D rendering tasks to a broader range of interconnected computing workloads supporting the demands of a new age of Artificial Intelligence (AI) and Spatial Computing.
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