Tokenomics

Introduction

This paper introduces Phron, a groundbreaking approach to blockchain technology by integrating artificial intelligence (AI) capabilities into the foundational Layer 0. Building upon the traditional principles of decentralization, security, and scalability, an AI-based Layer 0 blockchain aims to revolutionize the landscape of distributed ledger systems.

The core of our proposed solution lies in the incorporation of AI algorithms, enabling dynamic consensus mechanisms, predictive security measures, and adaptive scalability. By leveraging machine learning, the proposed chain adapts to evolving network conditions, enhancing efficiency and responsiveness in real-time. This adaptive consensus model not only strengthens resistance against attacks but also optimizes the network’s performance under various scenarios.

The proposed AI-based Layer 1 to be constructed on the master classes in Layer 0 introduces intelligent contract execution, augmenting the capabilities of smart contracts. Through integrated machine learning algorithms, the system gains the ability to autonomously optimize contract execution, predict potential vulnerabilities, and dynamically adjust gas fees based on current market conditions. This not only streamlines transaction processing but also enhances the overall security and efficiency of smart contract operations.

In this paper, we go over the design principles, technical architecture, the integration of AI master class modules into the Layer 0 blockchain, and how Layer 1 gains access to the underlying Layer 0 blockchain. We introduce novel approaches to solve Layer 1 bootstrapping issues while still securing the chain by Node - Block-Sharing (NBS). The introduction of Adaptive AI Staking (AAIS) builds on the built-in master classes to determine the node reward boost allowing for a more efficient anesthetization. Finally, we introduce the AI arbiter in the chain governance voting mechanism. The arbiter solves the long-standing issue of how to determine the voting power of the users.

We explore the impact of AI on decentralization, security, and scalability, presenting empirical evidence of improved performance through simulations and real-world use cases.