> For the complete documentation index, see [llms.txt](https://docs.bitplanet.ai/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.bitplanet.ai/introduction/core-concepts.md).

# Core Concepts

Understanding Bitplanet requires grasping a few key concepts. This page explains them in plain language.

## Attribution Ledger

Traditional blockchains are **asset ledgers**—they track who owns which tokens or NFTs.

Bitplanet is an **attribution ledger**—it tracks who contributed what to each AI agent and automatically distributes rewards based on economic value created.

**Example:**

* Alice trains an AI agent
* Bob refers 100 users to it
* Carol helps it generate $10,000 in revenue

Bitplanet records all three contributions permanently. When the AI earns rewards, Alice, Bob, and Carol automatically receive their fair share based on their recorded contributions.

## AI Agents

An AI agent is a digital entity that can perform tasks, answer questions, or provide services—powered by artificial intelligence.

On platforms like [Deva](https://deva.me/), AI agents are trained by real experts to replicate their knowledge and methodology. These agents can interact with users 24/7, generating economic value while their creators earn rewards.

**Key characteristics:**

* They have unique identities registered on Bitplanet
* They earn rewards based on usage and market value
* They can be owned, traded, and improved over time
* Their contribution history is permanent and transparent

## Cores and Gems: The Two-Token System

Bitplanet uses two types of tokens to manage AI agent value:

### Cores

**What they are:** Permission tokens that represent attribution rights

**How you get them:** Platforms like Deva submit "Requests for Core" (RfC) to Bitplanet on your behalf, documenting who contributed what. The blockchain mints Cores to contributors.

**What they do:**

* Prove you contributed to an AI agent
* Can be converted 1:1 into Gem tokens (the platform handles this conversion for you)
* Non-transferable (they stay with you)
* Form the basis for reward calculations

**Think of Cores as:** Permanent contribution receipts that the platform manages on your behalf

### Gems

**What they are:** Tradeable tokens representing fractional ownership in an AI agent

**How you get them:** Convert your Cores into Gems (1:1 ratio) or buy them on the market

**What they do:**

* Can be traded like any cryptocurrency
* Represent market value of the AI agent
* Used to calculate AI agent market capitalization
* Holders may receive benefits from the AI's success

**Think of Gems as:** Tradeable shares in an AI agent's future

### Why Two Tokens?

**Cores** track contribution (who did what) **Gems** track market value (what people think it's worth)

Separating these ensures:

* Contributors always get credit (Cores)
* Market can price AI value (Gems)
* Rewards flow to both early contributors and current holders

## Contribution Types

Bitplanet tracks six types of contributions to AI agents:

1. **TRAIN** - Providing training data or improving the model
2. **REFER** - Bringing new users to the AI agent
3. **CREATE** - Building or significantly enhancing the AI agent
4. **PROMPT** - Testing, refining, and optimizing prompts
5. **REVENUE** - Helping the AI generate income
6. **MARKET\_CAP** - Growing the AI's market value

Each contribution type is recorded separately, creating a detailed attribution history.

## Dual-Signal Rewards

Bitplanet evaluates AI agents using two measurable signals:

### Signal 1: Usage

How many times is the AI being used? High usage = genuine utility.

**Measured by:** On-chain inference count, tracked by platforms

### Signal 2: Market Capitalization

What are people willing to pay for the AI's Gem tokens? High market cap = high perceived value.

**Current Implementation (Pre-AMM):**

* Measured by total Gem supply (ERC-1155 totalSupply)

**Future Implementation (Post-AMM):**

* Measured by: `rolling_average[ (W1 × gem_supply) + (W2 × gem_market_cap) ]`
* Where `gem_market_cap = AMM_price × gem_supply`
* W1, W2 are governance-adjustable weights

**Why the weighted formula?**

* Supply alone is harder to manipulate but doesn't reflect market sentiment
* Price alone is vulnerable to pump-and-dump attacks on thin liquidity
* The weighted combination lets governance tune the balance to minimize manipulation
* 30-90 day rolling average smooths volatility

**Why both usage and market cap signals?**

* Usage alone doesn't show value (free things get used a lot)
* Market cap alone can be manipulated
* Together, they create a robust measure of genuine economic value

## The Three-Way Split

Every block, Bitplanet distributes 50% of its inflation as AI attribution rewards ([why this ratio?](/tokenomics/token-economics.md#why-this-distribution-ratio)), split three ways:

### Reward Distribution Diagram

{% @mermaid/diagram content="graph TD
A\[Total BPL Inflation] --> B\[50% AI Attribution Rewards]
A --> C\[50% Distribution Module]

```
B --> D[AI Apps: 40%]
B --> E[Creators: 40%]
B --> F[Contributors: 20%]

C --> G[Community Tax ~5%]
C --> H[Staking Rewards ~95%]

H --> I[Validator Commission ~10%]
H --> J[Delegator Rewards ~90%]

D --> K[Host AI agents like Deva<br/>Compensates operational costs]
E --> L[Built the AI agent<br/>One-time effort, ongoing rewards]
F --> M[Trainers, referrers, users<br/>Proportional to contributions]

G --> N[Community Pool<br/>Ecosystem development]
I --> O[Validators earn commission<br/>on staked tokens]
J --> P[Delegators earn majority<br/>proportional to stake]" %}
```

### Reward Recipients

* **AI Apps: 40%** - Applications like Deva that host AI agents and submit attribution data. Compensates operational costs.
* **Creators: 40%** - The people who built the AI agent. One-time effort, ongoing rewards.
* **Contributors: 20%** - Everyone else who helped—trainers, referrers, users who generated revenue. Distributed proportionally based on contribution history.

**The remaining 50% of inflation?** Flows through the standard BitSDK distribution module to network security participants:

* **Validators** receive their commission (typically 5-10%) on staking rewards
* **Delegators** receive the majority of staking rewards proportional to their stake
* **Community Pool** receives a percentage (configurable via governance) for ecosystem development

## Participants

Bitplanet serves five distinct groups:

* **AI Apps/Platforms** - Build AI marketplaces on Bitplanet, earn 40% of AI attribution rewards (20% of total inflation) for operations
* **AI Creators** - Train AI agents on platforms like Deva, earn 40% of AI attribution rewards (20% of total inflation)
* **Contributors** - Help improve AI agents, earn 20% of AI attribution rewards (10% of total inflation) proportional to contributions
* **Validators** - Run infrastructure to secure the network, earn commission on staking rewards plus transaction fees
* **Delegators** - Stake BPL tokens to validators, earn the majority of staking rewards (from the 50% allocation) without running infrastructure

## How It All Works Together

1. **A creator trains an AI agent** on a platform like Deva
2. **The platform submits a Request for Core (RfC)** to Bitplanet, documenting the creator's contribution
3. **Bitplanet mints Cores** to the creator as proof of contribution
4. **The platform converts Cores to Gems** (1:1) on behalf of the creator, making them tradeable
5. **As people use the AI**, the platform tracks usage and market cap
6. **Every block, Bitplanet calculates rewards** based on dual signals (usage + market cap)
7. **Rewards flow automatically**:
   * 40% to the platform
   * 40% to the creator
   * 20% to all contributors proportionally
8. **Everyone can claim their rewards** through the platform's user interface - the platform handles all blockchain interactions automatically

This cycle repeats continuously, ensuring that everyone who contributes to an AI's success shares in its rewards—automatically, transparently, and fairly.

## What You Don't Need to Know

Bitplanet handles complex technical details under the hood:

* How the blockchain reaches consensus (BitSDK + CometBFT)
* How attribution data is stored (IAVL trees, tensor matrices)
* How smart contracts enforce royalties (EVM precompiles)
* How cross-chain bridges work (IBC protocol)

**You just need to know:** Contribute value, get rewarded automatically.

The blockchain infrastructure ensures everything works correctly without requiring you to understand the technical implementation.

## Next Steps

Now that you understand the core concepts:

* **Explore** [**Token Economics**](/tokenomics/token-economics.md) to learn how rewards are calculated
* **Visit** [**Participants**](/participants/participate.md) to see how you can get involved
* **Check the** [**FAQ**](/introduction/faq.md) for common questions
* **Read** [**Why Bitplanet?**](/introduction/why-bitplanet.md) for the bigger picture