Payment & Fee

Overview

The YOT token serves as the primary medium of exchange within the Yotta Protocol, facilitating all on-chain interactions and transactions. It is designed to streamline operations, from GPU scheduling to compensation for network participants. This section outlines the payment and fee mechanisms employed by the Yotta Protocol, highlighting how YOT token enhances operational efficiency and user engagement.

Payment Options

Our platform supports three types of payments:

• Fiat currencies

• Supported stablecoins

• YOT tokens

Direct Payment with YOT Token

Users can choose to pay directly with YOT tokens for services on the platform. This method is the most straightforward and is incentivized with discounts (discussed below) to encourage its use, enhancing liquidity and stabilizing demand within the ecosystem.

Fiat and Stablecoin Conversions

For users opting to pay in fiat currencies or supported stablecoins such as USDC, the Yotta Protocol integrates with fiat on-ramp vendors. These vendors facilitate the automatic conversion of these currencies into YOT tokens at the point of transaction. This ensures that all internal transactions and compensations within the network are standardized to YOT tokens, maintaining consistency and simplicity.

Incentives for Using YOT Token

To promote the use of YOT tokens and stabilize the token economy, the Yotta Protocol offers discounts to users who pre-load and hold YOT tokens in their accounts:

• Pre-loading Incentive: Users receive a 2.5% discount for every 7 days that tokens are held in their accounts prior to use, with the ability to accumulate a maximum discount of 10%. This requires holding tokens for at least 28 days.

These discounts incentivize users to maintain a balance of YOT tokens, which aids the protocol in predicting demand more accurately and scaling GPU supplies as needed.

Fee Structure

The Yotta Protocol implements a dual-fee system to support both the platform's infrastructure and the broader protocol ecosystem:

• Platform Fee (5%): Charged to support the development, maintenance, and operational costs of the Yotta Platform. This includes funding for continual improvements of the platform interfaces such as websites, APIs, and documentation.

• Protocol Fee (5%): Directed towards the development and maintenance of the Yotta Protocol itself, which encompasses the decentralized operating system (DeOS) that underpins all operations.

Distribution of Fees

The fees collected are utilized as follows:

• A portion of the fees is reinvested into the platform and protocol for continuous improvement and expansion.

• The remainder of the collected YOT tokens is distributed to GPU providers, compensating them based on the computational work performed. This direct compensation model aligns the interests of GPU providers with the health and growth of the Yotta Network.

Conclusion

By employing YOT tokens as a central element of the payment and fee structure, the Yotta Protocol ensures a seamless, efficient, and scalable operation. These mechanisms not only support the financial stability of the platform but also enhance user engagement through incentives while ensuring fair compensation for network contributors.