# **Our Vision** NeurochainAI is transforming AI through a decentralized protocol that promotes diversity, inclusivity, and fair compensation, leveraging blockchain for transparency and making AI accessible for all. Our vision is to lead the market in network-based artificial intelligence implementation by providing the most accessible and user-friendly gateway to Web3 AI. To do so we simplify the integration of Web2 and Web3 applications with advanced gRPC and HTTP messaging protocols. Our commitment extends to empowering a decentralized network of miners and AI validators, driven by a Proof-of-Work through Proof-of-Stake (PoWtS) consensus and fuelled by a robust, community-driven open-source technology. We're setting a new standard in AI implementation, making it more efficient, accessible, and collaborative for everyone. _**Important Notice:** Please read the entire document, including all legal disclaimers and other important statements herein, carefully. NeurochainAI shall not be held liable for any damages, losses, or liabilities arising from the use of this website and/or the information provided herein._ # **Biggest Problems in AI** While AI has seen an unprecedented growth since the launch of ChatGPT 3, a myriad of complexities are preventing AI to become an integral part of the digital world. The current state of the AI industry presents multiple challenges: - **Hardware Infrastructure.** The lack of AI-focused infrastructure and the cost of adapted infrastructures causes developers to dedicate more time to infrastructure setup rather than product development, due to challenges in configuration, data management, resource scaling, and pricing. - **Data**. Acquiring and preprocessing high-quality data for AI algorithms is a significant challenge, involving privacy concerns, data labeling, cleaning, and ensuring representativeness and diversity. - **AI Models.** AI model training and tuning is a challenging process that demands computational resources and time. - **Deployment and Integration.** Deploying AI models from development to production is a complex process involving integration, scalability, security, and ongoing performance maintenance challenges. - **Custom AI Solutions.** While we’ve seen a steep increase in ready-to-use AI solutions, most of them are limited to generating texts, images, voices, and some calculations. Moreover, the majority of them are built on a single company’s private infrastructure and are highly dependent on the policies, pricing, operations, and practices of a single provider. This is not a reliable strategy for the majority of corporations that need custom solutions on a reliable infrastructure. At NeurochainAI we've set out to solve the majority of these problems through a decentralized, transparent, and collaborative open-source platform powered by the community. # **L1 NCN Chain Overview** NeurochainAI is poised to transform the AI ecosystem by employing a native blockchain founded on the Ethereum Virtual Machine (EVM) and Optimistic Rollups. NCN Chain is a native L1 blockchain founded on the Ethereum Virtual Machine (EVM) and Optimistic Rollups and specifically tailored to the AI industry. The pioneering amalgamation of an EVM chain with Optimistic Rollups ensures increased security, scalability, traceability, and efficiency for seamless connection between the NCN Chain and the NCN AI L3 - NeurochainAI’s fully decentralized AI layer. NCN Chain serves multiple roles: 1. **Foundation of NeurochainAI:** NCN Chain forms a robust tech foundation of the **NeurochainAI** ecosystem, facilitating the easy launch and operation of L3 - the AI layer. 2. **Verifiable and Immutable Reward Attribution**\: Managing and storing validation information on mined and burnt coins for the activities performed on L3 to keep the ecosystem stable and secure. 3. **Optimized Development Tools:** NCN Chain provides developers with a comprehensive suite of development tools powered by API integrations. These developer tools enable seamless integration between L1 and L3 to manage blockchain features in the AI dApps. 4. **Seamless Interoperability:** Through industry-leading bridging solutions as well as built-in cross-chain bridging we make NeurochainAI services and liquidity accessible on all blockchains securely and efficiently. This allows developers to benefit from NeurochainAI’s L3 and guarantees the scalability and liquidity of the NeurochainAI ecosystem. Serving as the cornerstone for NeurochainAI's incentive mechanism, the native blockchain rewards network participants with $NCNs - the NeurochainAI native token for their contributions to the ecosystem. These contributions may include GPU or NPU connection, data validation, AI model provision, dataset provision, or offering hardware resources for running AI services. This decentralized approach to incentivization invigorates user engagement and nurtures a collaborative and thriving ecosystem.  By implementing a native blockchain underpinned by the EVM and Optimistic Rollups, NeurochainAI is strategically positioned to offer a secure, scalable, and efficient platform for AI development and collaboration. This sophisticated infrastructure empowers users and businesses to leverage the full potential of AI in a genuinely decentralized and transparent manner, thereby laying the foundation for a new epoch of AI innovation. # **L3 NCN AI Overview** NCN AI is a layer 3 built on top of layer 1 NCN Chain to guarantee full interoperability and scalability of the AI network of NeurochainAI While L1 serves as the bedrock of the entire infrastructure, AI features are built as Layer 3 because AI is chain and technology-agnostic and should not be tied to any certain chain. NCN AI is the layer of all the AI-related platform features. First and foremost, it’s the decentralized GPU network or DePIN tapping into community-owned desktop and mobile GPUs and NPUs to source processing resources for AI computations. NCN AI also encompasses data required for AI model training either connected from developers’ private or third-party databases or collected and validated by NeurochainAI community. It also houses the AI model marketplace, interoperability tools, and the AI dApp store. Building AI platform as a Layer 3 enables full connectivity and interoperability with any Web3 or Web2 ecosystem and solution guaranteeing scalability and adoptability of the entire NeurochainAI ecosystem. # **PoWtS Consensus Mechanism** A Proof-of-Work (PoW) on L3 with Proof-of-Stake (PoS) on L1 consensus mechanism is utilized to ensure the seamless, secure, scalable, and integral operation of NeurochainAI ecosystem. To ensure the trustless, secure, and seamless operation of an infrastructure to guarantee accurate and verifiable attribution of rewards on blockchain for work performed on Layer 3, NeurochainAI uses a mixture of PoW and PoS consensus mechanism - Proof of Work through Staking (PoWtS). Here’s how it works: When the AI Mining Node receives an AI compute task, it processes the message and computes the response - similar to cryptographic calculations on regular PoW blockchain. The AI compute acts as a PoW on the NCN AI L3 and has to be validated by Neuron Validator Nodes through PoS on NCN Chain L1. This way, AI Mining Nodes receive rewards for the work - AI computations performed on the DePIN and Neuron Validator Nodes receive rewards for mining new coins in relation to validating these responses and filtering out bad actors, applying penalties for bad responses, misinformation, and misconfiguration. This PoW and PoS amalgamation ensures seamless, scalable, and integral operation of the NeurochainAI ecosystem. # **Three Types of Nodes Across NeurochainAI** Three different types of nodes constitute the integration and operation of NeurochainAI's L1 and L3 **L1’s Lite Validators: Neuron Validator Nodes** Neuron Validators are an integral part of the NCN Chain and AI L3 validation consensus network. These validators act as lite AI validators ensuring consistent AI compute proofs are confirmed and batched for L1 transaction execution. The main functions of Neuron Validators are: 1. Validating AI tasks performed on the L3 DePIN 2. Ensuring fair attribution of AI L3 Proof-of-Work with accurate and verified $NCN rewards on L1 3. Minting new coins on the NCN Chain 4. Contributing to network health and security by assuring computational consensus proofs We’re releasing new Neuron Validators Batches as and when required for controlled growth of the network. Prior to TGE 10k early **Neuron Validator Node licenses will be offered to the public through staking on FCFS basis.** #### **L3’s Worker Nodes: AI Mining Nodes** We’re connecting community-owned GPUs and NPUs into a global decentralized physical infrastructure network (DePIN) for computing AI or “Mining AI” in response to the lack of computation resources and exorbitant prices across centralized cloud computing providers. Two types of AI Mining Nodes are an essential part of the NCN AI L3: 1. GPUs with Windows or Linux operating system with min 8GB GPU, 4GB RAM, and 100GB storage that support NVIDIA. Standard laptops, gaming consoles, Raspberry Pis, or old Ethereum miners constitute the first type of AI Mining Nodes. 2. The second type of AI Mining Nodes are NPUs or GPUs on Android smartphones with 4GB of RAM and an ARM processor. The main roles of AI Mining Nodes: 1. AI Inference which in non-technical terms means returning AI model results from any prompt or computing AI 2. AI Model Training (Q4) # **Tokenomics** The total supply of NCN coins is capped at 3 billion coins. This fixed supply ensures that coin distribution remains predictable and prevents any ecosystem-wide inflation. **Creation of Coins**\: NCN coins are generated via the mining process, in which miners validate new blocks on the NeurochainAI network. As compensation for their contribution to the network's security and consensus, miners are rewarded with newly issued $NCN coins. **Distribution of Coins**\: The distribution of $NCN coins is conducted primarily through centralized exchanges (CEX) as part of the company's efforts to raise capital. Following is the breakdown of token allocation: 1. Ecosystem: 40% with 15% unlock on TGE and vesting on a daily basis for 365 days. The rest unlocks at the start of new coin mining. Reserved to NCN Chain validator network. 2. Foundation: 20% with 0% unlock on TGE, 6 months cliff, 24 months vesting after cliff. Allocated to fund the development, operations, marketing, and growth of NeurochainAI. 3. Team: 15% with 0% unlock on TGE, 9 months cliff, 24 months vesting after cliff. Allocated to key team members who are the drivers of the NeurochainAI platform, community, and growth. 4. Investors: 6% with varying unlock on TGE from 10% to 0%, 2 - 6 months cliff, 10-12 months vesting after cliff. Allocated to strategic investors before and after the launch to attract the right attention, increase brand awareness, and onboard the initial community. 5. Partnership Reserve: 6% with 0% unlock on TGE, 12 months cliff, 24 months vesting after cliff. Allocated to strategic partnerships that are fundamental in building NeurochainAI. 6. Initial Liquidity: 5% with 50% unlock on TGE, 0 months cliff, 6 months vesting after cliff. Allocated to incentivize and reward active NeurochainAI ecosystem participants. 7. Liquidity Reserve: 5% with 0% unlock on TGE, 6 months cliff, 18 months vesting after cliff. Reserved for any unforeseen matters to help with platform development and growth. 8. Advisory: 3% with 0% unlock on TGE, 12 months cliff, 24 months vesting after cliff. Reserved to attract high-profile advisors with relevant experience in the fields of AI, infrastructure, business development, and key partnerships. While NeurochainAI does not conduct an ICO or IDO, the project intends to hold an IEO on select centralized exchanges. The IEO will provide an opportunity for interested participants to acquire $NCN coins directly from the exchanges. More importantly, staying true to a fair launch approach, NeurochainAI has created plenty of opportunities for the community to get NCN credits before TGE. NCN credits collected as part of platform activities before TGE will convert to $NCN coin upon TGE at a ratio of 1:1. $NCN is the native coin of the NeurochainAI platform and is the main currency for all the processes used to: - Process all transactions and state changes on the blockchain. - Cover incentives and gas for AI inference and training network. - Enable building and deploying of smart contracts and decentralized applications (dApps). - Run and interact with blockchain applications by users and developers. **Coin Burning**\: Since this is an EVM blockchain, it has a built-in burning mechanism, making the early-stage pre-minted supply deflationary by default. Thus, NCN is burnt like ether until mining starts with the launch of a training network when new coins are produced on blockchain by providing authoritative proofs from AI validators within mining blocks. **Governance**\: Currently, there is no governance policy for the NCN community outlined in the whitepaper. Nonetheless, the Neurochain AI team may consider implementing governance mechanisms in the future to enable community participation in decision-making processes and to ensure the decentralized and inclusive nature of the project. **Exchange Listings**\: Neurochain AI is actively pursuing potential listing opportunities for the $NCN coin on various cryptocurrency exchanges. Discussions have taken place with exchanges such as Kucoin, [Gate.io](http://Gate.io), Bitfinex, BitGet, OKX, Whitebit, Bithumb, and MEXC. These exchange listings are intended to increase token liquidity, broaden token accessibility, and expand trading opportunities for users and investors. **Interoperability**\: More than gas, $NCN can be used in DeFi solutions through Wrapped ERC20 implementation (DEX, Lending, and similar). This enables interoperability between the NeurochainAI ecosystem and other chains, allowing for the transfer and interaction of assets across networks. **Staking**\: $NCN is used as a staked asset in the proof of stake AI validator network to relay and validate worker messages. It is also used as a staked asset in early staking contracts to incentivize early adopters through an airdrop point system.