Introduction

DePIN Incentives Calculator

The paper asks when a provider earns more by doing the required work than by deviating. A deviation can lower costs, create extra private revenue, or both. This calculator compares that gain with how much more likely the deviation is to fail a check. It then tests whether stake and probation rewards make honest work worthwhile, whether honest providers can cover their costs, and whether exiting with a new identity offers an easy escape.

01Describe the work

Enter the cost of honest work and the private gain from each deviation you tested.

02Describe the check

Enter how often providers are checked and what happens when a check fails.

03Review the result

See whether honest providers can stay and whether a new account offers an easy way out.

Use one provider, one reward period, and one consistent money unit throughout. Each input is explained when it appears.

Step 1 of 4

Describe the work and the deviations you tested.

Choose one money unit and one reward period, then describe each profitable deviation you tested. The calculator uses the scenario that is hardest to deter.

Which unit will you use?Choose dollars if you can convert every cost and reward to a common USD value. Choose tokens only if providers value all amounts in the same token. What does it cost to do all the required work?Include hardware, energy, bandwidth, maintenance, and other costs for one provider during one reward period.

Use USD equivalent everywhere on this page. Costs and rewards cover one provider for one reward period.

How will you estimate the gain and detection gap?Use tested values when you have them. The three service classes provide optional estimation aids.

For each scenario, enter the provider's total private gain and how much more often it fails than honest work.

What is the provider's total gain in scenario 1?

Include avoided work costs and any extra private revenue, such as self-dealing proceeds, during one reward period. How much more often does scenario 1 fail?

Subtract the failure rate for honest work from the failure rate for this deviation. Enter the difference in percentage points.

Compare more tested scenariosThe hardest scenario may not have the largest gain+

How many scenarios do you want to compare?Use separate scenarios for different service states or provider deviations.

The calculator uses the scenario with the largest total gain relative to its detection gap.

Step 2 of 4

Tell us how often providers are checked.

Check the test results

Use the chance that one provider receives a relevant check during one reward period.

What percentage of reward periods include a check?A value of 25% means the provider is checked in about one out of four reward periods.

When checked, how often does honest work fail by mistake?Use the average conditional failure rate across service states. Include noise, outages, and test errors.

Check the assumptions behind this resultFive questions required by the model+

Does the provider choose its action before learning whether it will be checked?The audit-frequency formula requires audit selection to remain unknown until after the provider acts.

Confirm that providers cannot time deviations around known checks.

Does the check cover every part of the work that costs money?Consider power, hardware, bandwidth, uptime, fresh data, and location.

If a provider can avoid a cost without changing the result, the check does not cover that part of the work.

Does a small cut in service make failure more likely?Test small reductions as well as obvious failures.

If a small cut looks the same as honest work, improve the check or accept the lower level of service.

Have you ruled out actions that cost at least as much as honest work but fail less often?A large consequence can otherwise push providers toward a costlier action that is safer under the test.

Compare honest work with costlier or excessive service levels, not only cheaper deviations.

Do the tested scenarios cover every important service state and plausible deviation?The calculator needs the largest gain-to-detection ratio, which may come from an unusual state or a subtle deviation.

Add scenarios until the tests cover the worst credible combination of private gain and detection.

Consequence needed if checked every period$20.00

Scenario 1 gives the provider 2.00 USD and is 10.00% more likely to fail when checked.

A failed check must cost at least$20.00

The binding scenario gives the provider 2.00 USD. When checked every period, it fails 10.00% more often than honest work.

Step 3 of 4

Choose what the provider loses after a failed check.

This calculator uses two provider states: normal standing and probation. The consequence can come from stake taken now, a lower reward next period, or both. Its present value must cover the binding deviation's total private gain.

What happens to stake after a failed check?

Stake the provider postsThe total collateral locked while the provider is active.

Share taken after failureUse 100% only when the full posted stake is taken.

A failed check takes 10.00 from the posted stake.

How does the reward change after a failed check?

Normal reward per periodThe regular payment for one provider during one reward period.

Reward while in probationWith one probation tier, a pass restores normal rewards and another failure keeps the provider in probation.

How much is one unit of next period's reward worth today?A value of 0.95 means one unit received next period is worth 0.95 today.

The reward is reduced by 10.53. Because that reduction happens next period, its value today is 10.00.

Combined consequence after failure20.00 of 20.00 needed

Stake taken now 10.00Lower next reward 10.00Enough to remove the advantage

See a lower-cost optionOptional comparison of checks, stake, and rewards+

This comparison looks for lower routine reward and checking costs. Posted stake is shown separately because it ties up provider funds rather than becoming a normal protocol payment.

Your current design

Posted stake: 10.00
Reward reduction: 10.53
Expected rewards: 23.50
Cost of checks: 1.00
Rewards + checks: 24.50

Lower-cost result

Chance of a check: 100%
Posted stake: 10.00
Reward reduction: 10.53
Reward after failure: 13.50
Rewards + checks: 24.50

The search compares check rates from 1% to 100%.

Step 4 of 4

Check whether honest providers can stay.

An honest provider needs to cover its costs while in probation, even after a mistaken failure. Exiting and creating a new identity must also cost more than remaining in probation.

Can an honest provider cover its costs?

Pass

Reward while in probation$13.50This amount was set in step 3. A pass returns the provider to normal rewards.

Smallest workable reduced reward13.50

10.00 operating cost + 2.00 earnings elsewhere + 1.50 stake-related cost.

Would exiting and creating a new identity pay?

Pass

How long does the old stake remain locked after exit?Count reward periods after a withdrawal request before that capital can be reused. The paper's re-entry condition assumes the old and new stakes overlap during this lockup.

periods

What does a new identity cost?Include non-refundable onboarding, identity verification, hardware binding, and other real costs paid again. Do not count refundable stake.

Suggested lockup: 1 periodor identity cost 0.00

Exit and re-entry cost 11.90; escaping probation is worth 10.00.

Result

The numbers work, but the test results need review.

Review the test questions in step 2.

Evidence needed

Check detects the binding deviationReview tests

Consequence after failureEnough

Provider covers its costsYes

Exit and re-entry paysNo

Other settingsOptional provider costs and design limits+

What could the provider earn elsewhere?Enter what the provider could earn with the same time or money during one reward period.

What does it cost to keep stake locked?Enter this as a percentage for the same reward period used in the rest of the calculator.

What does one provider check cost?Include payments, computing, data transfer, and staff time. This is used only in the optional cost comparison.

What is the most stake a provider can post?Use an amount that a normal provider can afford.

What this result means

A passing result means the numbers satisfy the paper's model for one normal state and one probation state. It does not prove that the check covers every real-world deviation. The result depends on the service states, provider actions, costs, and failure rates tested above.