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Earning $BASED With Brain Credits

Updated: April 18th, 2024

It is possible to own a fraction of a Brain by depositing your ERC20 “Brain Credits” into the collective buying contract. Since all Brains cost 1,000 Brain Credits, you can always know how much of a Brain’s rewards you will earn based on the number of Brain Credits you have.

Brain GraphicBrain Graphic

For example, if you own 10 Brain Credits you can deposit them in the collective buying contract and when it reaches 1,000 Brain Credits a Brain is issued and you will start to earn 1% of the emissions of that new Brain.

Brain Graphic

Put into numbers, even if no one mines your Brain at a minimum it earns ~13,000 $BASED in its first year, translating to 130 $BASED earned by your 10 Brain Credits. In addition to this, users would have the ability to compound their $BASED earnings by staking the $BASED at their given Brain.

If you are not staking 100,000 Pepecoin you are redeeming a Brain using Brain Credits.

Brains serve as the principal mechanism for obtaining $BASED emissions (see: BasedAI Whitepaper - Section 3) in the BasedAI ecosystem.

The acquisition of Brains through the burning of Pepecoin is facilitated by the issuance and redemption of “Brain Credits”. The amount of Brain Credits you own is effectively the percentage of what the Brain earns. For example, if you own 100 Brain Credits, you would get 10% of that Brain’s emissions.

Brains can either earn for one owner as a ERC721 or can be converted to ERC20s for collective distributed ownership. The percentage of any given Brain’s ERC20 is the amount you earn from that Brain’s emissions.

The pooling function permits the creation of an open pool into which Brain Credits can be deposited. Upon reaching the threshold of 1000 Brain Credits within a pool, the pool is closed and these credits are immediately redeemed, resulting in the assignment of a Brain to the contributors of the pool. Subsequently, a Brain-specific ERC-20 token is distributed to the contributors in proportion to the amount of Brain Credits they have deposited. This mechanism facilitates the formation of Brain Decentralized Autonomous Organizations (Brain DAOs), within which members can exercise voting rights concerning the Brain's operational decisions or the reward systems to be implemented.

Scenario 1: Individual Ownership

Brain Graphic

Scenario 2: Pooled Ownership

Brain Graphic

Additionally, it is important to note the differences in emission distribution between individual and pooled Brain ownership. For individual Brain owners, emissions are directly transferred to the owner, whereas for pooled Brain Collectives, emissions are shared among the holders of the specific ERC-20 token associated with that Brain. The largest holder of the ERC-20 token assumes the ownership role and is able to make changes to the Brain. If there is an equal division of holdings among the top holders (for example, 25% each), the earliest Brain Credit contributor is awarded the ownership role.

As a result of the initial lowered burn rates for Pepecoin, early burners gain preferential access to Brain Credits, the primary method for future acquisition of $BASED.


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