The cheaper option tends to be the more competitive, so we’ve removed any unnecessary costs from the protocol. Simplifying PIPE tokenomics also removes practical and regulatory friction points, which promotes scalability and adoption. Meanwhile, opportunities to earn money with PIPE remain attractive. Together, this helps to ensure long-term commitment from users and storage nodes.

PIPE has a service-for-service model that chooses bartering whenever possible. This means a lot of the usual fees in blockchains and decentralized storage don’t exist in PIPE. On the other hand, incentives to offer quality storage and stay honest remain a priority. The benefit of the above is that PIPE is not just cheaper; it also scales better, which makes it attractive for consumers and companies to adopt.

$PIPE creates a data ecosystem

The PIPE infrastructure components allow anyone to set up decentralized data storage with immutability and data provenance – on their own servers. However, aside from issues with decentralization, not many people want to run their own server. 

The $PIPE token turns the PIPE Infrastructure into a decentralized storage and data transfer ecosystem. It creates an open market mechanism that lets node owners rent out excess capacity on their server, or hire additional capacity during incidental or unexpected peaks. 

As a result, the token allows anyone guaranteed access to decentralized storage space without having to run their own node. This results in a node market that is incentivized to support decentralized storage and data transfer.

What makes $PIPE Token easy to use?

Owning the PIPE token means you can smoothly store and retrieve data, without requiring anyone’s authorization to participate. This makes PIPE both more reliable and open. 

  • The token creates an open data storage market
    The PIPE token gives anyone access to the decentralized data storage market. As the binding factor in the ecosystem, it also acts as a collateral for data persistence and data transfer between nodes. In essence, it fulfills three essential roles in node interaction:
    – Pay for storage credit on a data channel
    – Settle bandwidth overruns between individual nodes
    – Stake for guaranteeing reliable storage on the network
  • PIPE is feeless wherever possible
    User actions that require fees have been reduced to initially buying storage credits and settling them at a time you choose. The other interactions on the network are feeless, meaning you only pay for the service of storage and data transfer itself.
  • Feeless traffic between nodes
    PIPE’s internal service-for-service architecture can be seen as a meter, monitoring the balance between neighbors sending and receiving data. This works because in a well-connected network, every neighbor normally receives as much traffic as it sends. As a result, neighbors can barter relaying data, which means there is no need for fees to move data back and forth. And whenever there is an imbalance, it can be restored by paying the $PIPE token.
  • Prepaid data storage means pay and forget
    Storage credit is added to a chunk to pay for the storage of data over time. Because it is connected to the chunk and not to the node that stores it, it is possible to transfer the responsibility and earnings for chunk storage to another node. This mechanism allows PIPE to store chunks indefinitely without an action from the user.
  • Anyone can use PIPE without holding the token
    Storage credit can be added to a data channel by anyone, paying for all data uploaded to that channel. This is an important feature, because it means you don’t have to hold tokens to pay for storage in your channel. Instead, you can pay a company like TangleHUB in your local currency. In return, you get an invoice and TangleHUB adds storage credit to your data channels. This way, you don’t own or hold a tradable asset, which can simplify decentralized storage if you or your company are not allowed to hold cryptocurrency.
  • A raffle as a lightweight, fair rewards model
    The raffle reward model uses a lottery mechanism to reduce fees and overhead for distributing rewards and checking nodes’ commitment to storage. The way it works is that every stored chunk represents a ticket in the raffle, enabling the storage node to “win” a prize. Besides rewarding nodes, the raffle also checks uptime and reliability. This works because any honest node will enter the raffle to collect a reward for their effort. The raffle picks the winning “tickets” randomly, so over time the funds are distributed evenly proportionately to the amount of chunks a node stores. This mechanism adds to PIPE’s efficiency because it reduces the number of times it checks with the (external) smart contract layer. It lets PIPE scale while keeping costs low.

We have defined the desired behavior of the token and mapped out how to build it. This has been coded into smart contracts, and we’re now reaching out to tokenomics experts to help us model and verify it is working correctly.

Conclusion

The existence of the PIPE token creates a decentralized storage market that is freely accessible for anybody holding the token. This means that the technical hurdles of starting and maintaining a server are no longer an obstacle. It makes way for immutable, decentralized data storage – highly scalable and at predictable prices. By favoring scalability and predictable costs, node owners have long-term revenue models, which give both them and their users certainty.

Join us

The $PIPE token is a very exciting part of our ecosystem. We’d like to hear what you think about it and how it can become even better. Discuss it with us on our Discord, or subscribe to our newsletter to keep up to date on new developments.