5.5 Compute Rewards and Participation Incentives

Avao Compute introduces a decentralized marketplace where users can contribute idle computing resources — particularly GPUs — to support AI, rendering, and research workloads. In return, contributors receive protocol-level incentives from a dedicated emission pool. This model transforms underutilized hardware into a productive resource while supporting developers and enterprises with affordable, verifiable compute.

Key Principles

• Utility-first: Compute rewards are tied to verifiable contribution, not speculative activity or passive holding.

• Emission-based: 8% of the total AOV supply is allocated to compute incentives and distributed over a fixed eight-year schedule.

• Transparent and fair: Rewards are determined by measurable factors such as uptime, verified contribution, and stake commitment, under protocol-defined rules.

How It Works

1. Registration: Users register eligible machines through Avao Suite.

2. Uptime Verification: After two weeks of continuous verified uptime, machines become eligible to participate in emissions.

3. Emission Allocation: Rewards are distributed based on a combination of verified compute contribution and staked AOV, weighted according to protocol parameters.

4. Unstaking and Cooldown Rules: If a compute provider unstakes their machine, a cooldown period of one month is enforced before the same machine may stake again. This mechanism discourages short-term participation and promotes long-term reliability within the marketplace.

Emission figures shown on a monthly, weekly, and daily basis represent averaged distributions for transparency. Actual reward distribution occurs continuously according to protocol rules.

Reward Allocation Mechanics

There is no maximum cap on total AOV that may be staked within the Compute Marketplace. Each participant’s share of emissions is determined proportionally based on:

• the amount of AOV staked, and

• the level of verified compute contribution provided during the emission period.

As participation increases, individual reward rates adjust dynamically, ensuring that emissions remain fair, utilization-driven, and non-promissory.

This framework ensures that compute rewards function strictly as ecosystem participation incentives. Contributors are rewarded for strengthening Avao’s decentralized utility layer and maintaining consistent, dependable infrastructure — not for short-term or speculative behavior.

This flow illustrates how AOV emissions are distributed to users who actively contribute to the ecosystem — either by locking tokens in vaults or by providing computing power. The system rewards participation and alignment, not passive holding.