Spartan NTT Economic Mechanism
NTT Introduction
A Non-Tradable Token (NTT) is the network non-transferable utility token that is issued on the Default Chain of the BSN Spartan Network. Each Spartan Data Center has only one NTT wallet registered in the governance smart contract to hold NTT, which can be purchased with fiat currency or designated stablecoins or can be acquired through the incentive programs. NTT must be used to top up the Gas Credits for Wallets of any Non-Cryptocurrency Public Chain on the BSN Spartan Network. NTT is not tradeable and cannot be transferred between Data Centers.
Basic Logic:
NTT can be purchased with fiat USD or USDC at a fixed 1:1 ratio.
NTT is used to purchase the Gas Credits of any Non-Cryptocurrency Public Chain on the BSN Spartan Network, at an exchange rate that varies depending on the Non-Cryptocurrency Public Chain that the user chooses. Generally, as a benchmark, one standard ERC721 NTT minting transaction consumes roughly 0.03 NTT of Gas Credits.
As all on-chain transactions consume Gas Credits, users should top-up their wallets when the remaining Gas Credits are depleted. If the number of Gas Credits is not sufficient, then none of the transactions can be executed.
Both NTT and Gas Credit are non-transferable between user wallets.
How to get NTT
There are three methods for Data Centers to Obtain NTT:
Purchase NTT with Fiat USD or USDC
NTT can be purchased using fiat USD or USDC at a fixed 1:1 ratio. After the payment has been made, the equivalent amount of NTT will be transferred from the NTT Master Wallet to the NTT Wallet of the Data Center. NTT will be borrowed from the NTT Reserve Wallet if the NTT Master Wallet has insufficient NTT.
Node Establishment Incentive Program
When a new node is registered in any NC Public Chain on the BSN Spartan Network, a fixed amount of NTT will be given to the Data Center’s NTT wallet as a one-time incentive. If the incentive amount for a given Non-Cryptocurrency Public Chain needs to be changed, all consensus/validator node operators must vote to give approval.
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- These incentive NTT will be directly minted to the NTT Wallet of the Data Center.
Data Center Monthly Incentive Program
The Data Center can use NTT to purchase Gas Credits for any Non-Cryptocurrency Public Chain on the BSN Spartan Network, including Spartan-I, Spartan-II, and Spartan-III. NTT will be spent in the NTT Wallet and then flow into the NTT Master Wallet. Each end-user wallet can only be topped up with Gas Credits paid by one Data Center’s NTT Wallet. Gas Credits will be consumed by the target wallet to execute transactions on-chain. By the end of each month, the total gas credit consumption of all wallets topped up by one Data Center ’s NTT Wallet will be calculated. Based on the total usage from the previous month and the Data Center Monthly Incentive Program, a certain amount of free NTT will be directly minted into the Data Center's NTT Wallet as the reward from the incentive program.
The Incentive Program Reward Calculations
For Spartan Network’s incentive programs, including Data Center Monthly Incentive Program and Node Establishment Incentive Program, please refer to the following sections for how rewards are calculated and some examples:
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- It should be noted that the parameters listed here are only for reference purposes. The actual parameters will be determined by the BSN Foundation and, if any parameter for a given chain needs to be changed, a consensus vote will be initiated. The incentive amount can be updated only after a certain percentage of consensus parties agree.
Data Center Monthly Incentive Program Reward
The primary purpose of the Data Center Monthly Incentive Program is for Data Center Operators to receive a monthly NTT reward, similar to loyalty points from shopping malls, airlines, or hotels. The amount of the NTT reward is calculated based on the gas credit usage that occurred in the previous month in a progressive way. These reward NTT are minted directly on the Default Chain to the data centers’ NTT Wallets. The amount of the final reward is also subject to regular health check of all the full nodes installed within the data center. If some nodes are only partially operational during the entire month, only partial or no reward will be granted.
| Incentive Level | Gas Credit Consumption (NTT) in Previous Month | Progressive Loyalty NTT Ratio |
|---|---|---|
| Tier 1 | 0 - 200 | 100% |
| Tier 2 | 201 - 3,000 | 60% |
| Tier 3 | 3,001 - 20,000 | 40% |
| Tier 4 | 20,001 - 100,000 | 20% |
| Tier 5 | >More than 100,000 | 10% |
Example:
Suppose the Gas Credit Consumption (NTT) in the previous month by a Data Center is 210,000 NTT. This Data Center will get 35,680 NTT as the reward from the Data Center Monthly Incentive Program.
Tier & Range in units of NTT |
Incentive Amount in NTT |
|---|---|
| Tier 1 [0 – 200] | 200 * 100% = 200 |
| Tier 2 (200 – 3,000] | (3,000 - 200) * 60% = 1,680 |
| Tier 3 (3,000 – 20,000] | (20,000 - 3,000) * 40% = 6,800 |
| Tier 4 (20,000 – 100,000] | (100,000 - 20,000) * 20% = 16,000 |
| Tier 5 >100,000 | (210,000 - 100,000) * 10% = 11,000 |
| Total Reward | 200 + 1,680 + 6,800 + 16,000 + 11,000 = 35,680 |
Node Establishment Incentive Program Reward
The purpose of the Node Establishment Incentive Program is to encourage Data Center Operators to install full nodes of all NC public chains on the Spartan Network, or in some cases, even multiple full nodes of one NC chain can be installed to fulfill large transaction demands from end-users. For each full node installed successfully, a 50 NTT will be directly minted into the Data Center’s NTT Wallet as a one-time reward. To prevent this incentive program from being manipulated, some mechanisms are set up to make sure that Data Center Operators are in good faith when installing more full nodes, such as the Data Center Operators who took some full nodes off-chain would not be allowed to get the reward again for new full nodes or even would not be allowed to register new full nodes at all.