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Network Participants

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The DIG Network operates through four distinct participant types, each with specific technical requirements, economic incentives, and operational responsibilities.

Content Creators/Publishers​

Content creators initiate value flow in the network by publishing data and signaling its economic importance.

Technical Requirements​

  • Chia Wallet: For DataStore NFT creation and DIG Handle registration
  • DIG Client Software: To package content and interact with nodes
  • Network Connectivity: Sufficient bandwidth for initial content upload

Operational Workflow​

1. DataStore Creation
   ├── Package content into capsule format (~16MB chunks)
   ├── Generate Merkle tree for integrity verification
   ├── Create NFT with metadata and root hash
   └── Optional: Include bribe distributor for performance optimization

2. Handle Registration
   ├── Select handle length (determines tier and cost)
   ├── Pay registration fee in DIG tokens:
   │   • 3-char: 5000 DIG (Tier 1)
   │   • 4-char: 1000 DIG (Tier 2)
   │   • 5-char: 200 DIG (Tier 3)
   │   • 6-char: 40 DIG (Tier 4)
   │   • 7-char: 8 DIG (Tier 5)
   │   • 8+char: 1 DIG (Tier 6)
   └── Link handle to DataStore on-chain

3. Content Distribution
   ├── Push DataStore to initial DIG Node
   ├── Monitor propagation via PlotCoin registry
   └── Optional: Fund network bribes for consolidation

Economic Model​

Cost Structure:

  • One-time DIG Handle registration fee
  • Optional network bribes for performance optimization
  • No ongoing hosting fees

Value Optimization:

  • Higher-tier handles attract more storage providers
  • Network bribes can improve retrieval performance
  • Market dynamics ensure appropriate redundancy

Storage Providers (DIG Nodes)​

Storage providers form the network's infrastructure backbone, storing content and serving retrieval requests.

Technical Requirements​

Hardware:

  • Storage: Minimum 1TB available space (recommended: 10TB+)
  • CPU: 4+ cores for proof generation
  • RAM: 16GB minimum (32GB recommended)
  • Network: 100Mbps+ symmetric connection

Software:

  • DIG Node software
  • Chia full node or light client
  • Plot generation tools

Operational Workflow​

1. Content Discovery
   ├── Monitor DIG Handle registry for opportunities
   ├── Accept direct DataStore pushes
   ├── Participate in P2P content exchange
   └── Analyze profitability metrics

2. Storage Decision Matrix
   ├── Calculate expected DIG rewards:
   │   • Handle tier multiplier × capsule size multiplier / current provider count
   │   • Higher tiers and larger capsules = higher base rewards
   ├── Evaluate network bribes:
   │   • Consolidation rewards from DataStore
   │   • May exceed DIG rewards for popular content
   └── Choose optimal storage strategy

3. Plot Generation
   ├── Download selected capsules
   ├── Generate plot file (7-table format)
   ├── Create cryptographic proofs:
   │   • Plot ownership proof
   │   • Data inclusion proof
   │   • Computational work proof
   │   • Physical access proof
   └── Register PlotCoin on-chain

4. Staking and Registration
   ├── Stake required DIG tokens (amount TBD)
   ├── Submit PlotCoin with proof package
   ├── Maintain network availability
   └── Respond to validation challenges

Economic Incentives​

Revenue Streams:

  • DIG Rewards: Distributed based on successful validations
    • Handle tier multipliers: Tier 1 (3-char) = 5x, Tier 2 (4-char) = 4x, Tier 3 (5-char) = 3x, Tier 4 (6-char) = 2x, Tier 5 (7-char) = 1.5x, Tier 6 (8+char) = 1x
    • Capsule size multipliers: 1000MB = 3x, 100MB = 2x, 10MB = 1.5x, 1MB = 1.2x, 256KB = 1x
    • Total reward = base × handle_tier_multiplier × capsule_size_multiplier
  • Network Bribes: Direct payments for content consolidation
  • Performance Bonuses: Additional rewards for superior service

Cost Considerations:

  • Hardware and bandwidth costs
  • DIG token staking requirements
  • Opportunity cost of storage allocation

Provider Categories​

Professional Operators:

  • Data center infrastructure
  • Automated portfolio optimization
  • Geographic distribution
  • 99.9%+ uptime targets

Community Providers:

  • Home/small office setups
  • Manual content selection
  • Local/regional focus
  • Best-effort availability

Specialized Providers:

  • Edge computing integration
  • Content-specific optimization
  • Regional market focus
  • Premium service tiers

Validators​

Validators ensure network integrity through cryptographic verification and fair reward distribution.

Current Implementation​

Curated Community Validators:

  • Selected based on technical expertise and reputation
  • Multisig coordination for transparency
  • Temporary solution pending DAO primitives

Technical Requirements​

  • Infrastructure: High-availability servers
  • Network: Low-latency connections to Chia network
  • Software: Validation suite and monitoring tools
  • Stake: Significant DIG token holdings

Operational Workflow​

1. Random Capsule Selection
   ├── Use Chia block hash as entropy source
   ├── Apply VRF for deterministic selection
   ├── Select capsules across multiple tiers
   └── Ensure unpredictable distribution

2. Provider Verification
   ├── Query PlotCoin registry
   ├── Verify stake requirements
   ├── Check proof validity:
   │   • Cryptographic signature verification
   │   • Merkle proof validation
   │   • PoW binding confirmation
   │   • Liveness testing
   └── Record verification results

3. Reward Calculation
   ├── Determine content tier from handle
   ├── Count valid providers for capsule
   ├── Calculate individual rewards:
   │   reward = (handle_tier_multiplier × capsule_size_multiplier × base_reward) / provider_count
   ├── Check for network bribes
   └── Distribute all applicable rewards

4. Network Maintenance
   ├── Monitor network health metrics
   ├── Adjust validation parameters
   ├── Coordinate protocol upgrades
   └── Publish transparency reports

Future DAO Governance​

Phase 1: DAO Management (Post-Chia DAO Release):

  • DAO controls validator selection
  • Performance-based hiring/firing
  • Transparent metrics and accountability
  • Community-driven decisions

Phase 2: Full Automation:

  • Smart contract-based selection
  • Automatic performance monitoring
  • Self-adjusting parameters
  • Minimal human intervention

End Users​

End users consume content from the network without participating in its economics.

Access Methods​

Direct Access:

  • Browser-based retrieval via *.dig domains
  • Native application integration
  • API-based content fetching

Technical Flow:

1. Content Resolution
   ├── Resolve DIG Handle to DataStore ID
   ├── Query PlotCoin registry for providers
   ├── Select optimal provider(s)
   └── Initiate content retrieval

2. Content Retrieval
   ├── Download capsules from provider(s)
   ├── Verify Merkle proof integrity
   ├── Reconstruct original content
   └── Cache for performance

User Benefits​

  • Censorship Resistance: No single point of content control
  • High Availability: Redundant storage across providers
  • Performance: Geographic distribution and caching
  • Integrity: Cryptographic content verification
  • No Direct Costs: Access funded by creator incentives

Inter-Participant Economics​

Value Flow​

DIG Token Circulation:

Creators → Handle Registration → Treasury
    ↓                              ↓
Content Publication          Validator Rewards
    ↓                              ↓
Storage Providers ← DIG Rewards ← Validators

Optional Bribe Flow:
Creators → Bribe Distributor → Storage Providers

Market Dynamics​

Supply and Demand:

  • Handle registration creates demand for DIG tokens
  • Storage providers sell rewards to cover costs
  • Natural price discovery through market forces

Equilibrium Mechanisms:

  • High-value content attracts more providers
  • Increased competition reduces individual rewards
  • Providers migrate to underserved content
  • System reaches optimal distribution

Network Effects​

Growth Incentives:

  • More content increases provider opportunities
  • More providers improve user experience
  • Better performance attracts more creators
  • Positive feedback loop drives adoption

Sustainability Factors:

  • Fixed token supply prevents inflation
  • Increasing demand from handle registration
  • Long-term value appreciation potential
  • Self-funding through economic activity

Security Considerations​

Attack Vectors and Mitigations​

Sybil Attacks:

  • Mitigation: Staking requirements and proof-of-work
  • Economic cost makes attacks unprofitable

Free-Riding:

  • Mitigation: Cryptographic proof verification
  • Cannot claim rewards without actual storage

Censorship Attempts:

  • Mitigation: Economic incentives for redistribution
  • Content naturally flows to willing providers

Network Spam:

  • Mitigation: Handle registration costs
  • Economic filtering of low-value content

Participant Trust Model​

Trust Requirements:

Creators → Network: Cryptographic guarantees
Network → Providers: Proof verification
Providers → Validators: Transparent process
Validators → Community: Public accountability
Users → System: Mathematical verification