Capx Incentivised Testnet Overview

Building the largest decentralized human-centric AI infrastructure. At Capx we aim to build the data layer of AI, aggregating everything AI.

The Capx AI Protocol operates on a token-incentivised human network, utilizing the Capx Chain (currently in testnet) for proof generation, maintaining transparency across all data interactions, as well as enabling encryption and maintaining self-custody over personal & private data, being used to train LLM models.

Capx Token

Capx Chain’s native token CAPX, is a multi-utility token which primarily focuses on ‘Network Functionality’ & ‘Contributor Economy Creation’.

Network Functionality:

1. Network Token - CAPX serves as the primary medium of exchange within the Capx Chain ecosystem, enabling participants to interact with network services and applications.

2. Sequencer Reward - CAPX tokens are awarded to sequencers (nodes that order transactions) for their role in maintaining the network's integrity and speed.

3. Gas Fee - as part of the Capx Chain network, compensating for the computational resources required to process and validate transactions.

Contributor Economy Creation: As the success of the protocol is directly proportional to the true alignment of the contributors, CAPX token breeds ownership of the protocol, as well as is the main reward token of the protocol. All additional rewards, whether direct or indirect, are tied to or affect the CAPX token earnings of contributors. CAPX token holders gain access to tier-based bonus rewards and various opportunities, enhancing the incentives for contributors and network participants.

Timeline

Eligibility

In order to participate in the incentivized testnet campaign, it is important for the participants to mint their ‘Season Pass’. The Season pass is a soul-bound NFT that gives them the access to the incentivized testnet, as well as the associated rewards. There is no other requirement in order to become a campaign participant.

There are four distinct variations of Season Passes, each with its own limited supply and minted on a first-come, first-served (FCFS) basis, accompanied by its unique reward pool. These Season Pass types are categorized as Alpha, Beta, Gamma, and Delta.

Rewards

Capx Chain has allocated 18,000,000 CAPX tokens (1.8% of the token supply) to the incentivized testnet program.

On-chain Point System: We have implemented a novel reward system named "UNITS," an on-chain (ERC20) point system designed to incentivize members of the Capx app and contributors to the Capx chain. The Capx App members can simply complete various tasks, as well as participate in the Capx App referral program to earn UNITS. These UNITS will later be converted into CAPX tokens.

The 15,000,000 CAPX tokens are distributed based on independent performance + relative position of the person in the system. There are 3 deciding factors based on which the rewards will be distributed to the participants -

1. Number of UNITs Earned & Staked: an on-chain point system on Capx Chain

2. Capx Profile ID Mint Number: the earlier you mint, the more tokens you earn

3. Type of Season Pass: Alpha, Beta, Gamma & Delta

The ‘type of season’ pass is a contributing factor along with the other 2 factors that decide the amount of CAPX tokens the participants will be rewarded. Consider the “type” of season pass as the overarching factor that determines how Capx will segregate the early participants from newer participants.

EXAMPLE: If there are two participants who have minted the ‘Alpha’ season pass, then the amount of CAPX tokens to be rewarded to each of them will be based on their UNITS earned & staked + their ID mint no. Combining these 2 contributing factors, these participants will be rewarded from the reward pool of 5,000,000 CAPX tokens.

Conclusion

With the Capx Chain Testnet Campaign, Capx aims to stress test the infrastructure, especially the Capx Chain in terms of data verification, data storage, smart contract verification logic, asset transfers, staking, minting & burning mechanism.