Consensus Mechanism

To balance decentralized governance and high-performance AI computing, NeuralNet DAO implements a hybrid consensus mechanism, combining Proof-of-Stake (PoS) governance with a Proof-of-Contribution (PoC) incentive model for fair resource allocation.

1️⃣ Proof-of-Stake (PoS) Governance

• NND token holders stake tokens to participate in governance, voting on AI research priorities, resource allocation, and ecosystem upgrades.

• Smart contract governance automates proposals, funding distributions, and system updates, eliminating centralized control.

• Liquid Staking Mechanism ensures that governance participation does not hinder liquidity within the ecosystem.

2️⃣ Proof-of-Contribution (PoC)

• AI developers, data providers, and compute contributors earn NND tokens based on their contributions to AI model training, dataset sharing, and computational power provisioning.

• A Decentralized Reputation System (DRS) tracks and scores contributor reliability, preventing malicious activities such as data poisoning or model tampering.

• Dynamic Reward Weighting Mechanism ensures fair token distribution, rewarding contributors based on real economic value.

3️⃣ Layered Execution Model

• On-Chain Governance Layer: Governs voting, proposal execution, and incentive distribution.

• Off-Chain AI Computation Layer: Handles AI workloads efficiently while ensuring transparency through verifiable computation proofs (ZK-Rollups, Optimistic Rollups).