Two important developments have been recently evolved for @RenderToken:
1. Proposed tokenomics changing $RNDR from a simple ’17 ICO token to an utility token with clear value accrual
2. The flocking of Ethereum miners to the Render NetworkLet’s dive in! 🧵
1/ First of all, what the heck is Render Network?
Founded by @JulesUrbach, it allows for the rendering of an artist’s work matching with a computer's spar GPU-capacity.
Already envisioned in 2009, Jules Urbach patented the token-based billing model for server-side rendering.
2/ There are two crucial advantages underlying Render Network's:
1. Pricing arbitrage:
NVIDIA's monopoly in GPUs dictates the Cloud Giants pay 10x the price for 20% more efficiency compared to consumer GPUs.
This made $RNDR 79% cheaper than the median render farm alternative.
3/ 2. Scalability.
It's common to reserve computation power at AWS/GCP/Azure.
Render Network has the ability to scale up to urgent demands without needing to pay exuberant costs
4/ This is because utilization rates are typically at 1% - an artist can easily reach an urgent deadline without paying surge pricing.
Utilization rate is the usage over total GPU capacity of the network.
5/ Render Network has proven a clear product-market fit:
In the first half of '22, 5.3M frames were rendered, a doubling from the year prior despite the fall in NFT activity.
This translates to 900K $RNDR spent, amounting to $225,000 rev using $RNDR fixed pricing per OB hour.
6/ What's cool is that some of the greatest NFT artists are using @RenderToken themselves:
7/ Render Network runs on spar GPU-capacity of computers.
It's no surprise Render Network has become a home ground for ETH miners after the successful Merge. In fact, the wave of new node-operators forced Render Network to pause the application for node-operators.
8/ Let's sum up what we know about @RenderToken thus far:
-It's a network of distributed GPUs which renders an artist video or NFT-Render's USP are pricing arbitrage & scalability
-Used by the NFT artist chads
-ETH miners getaway postPoW
9/ So hear me out. What started as a simple ICO token is getting redesigned from the ground up. Following Proof of Physical Work's fav @helium & @Hivemapper, $RNDR is proposed to use a burn/mint model, opening up value accrual to its holders.
10/ There has been push-back from the community.Should the token should be accretive to investors?This would only confuse the artist and node-operators from the utility the network creates.
11/ @multicoincap led the 30M round in Dec of '21.
Their investment associate @shayonsengupta recently proposed the tokenomics change in RNP-001.
12/ In a similar fashion to @helium, the artist would burn X USD of $RNDR for the node operator to render the project.
Using newly minted tokens*, Node operators are giving Coupon and Availability rewards.
*a 20% supply increase is proposed.
13/ If the emissions are scaled down while demand has not yet evolved to sustain node operators, a net emissions cap is necessary.
This cap will still provide node-operatos with incentives after the max supply has been reached.
14/ While @RenderToken has clearly been successful in providing a 10x better product to its users, the network is positioning itself for the next wave of demand.