Hype first? RNDR on the Sol chain is not iterating on its core business of 3D rendering, but instead optimizing its economic model

Author: Vanguard 0

The decentralized 3D rendering solution provider Render Network has announced that its BME (Burn Mint Equilibrium) release plan has gone live on the Solana network. The upgraded token RENDER (formerly RNDR) is now also available on Solana and can be used for on-chain payments.

Render Network states that the BME model aims to achieve a balance of supply and demand, helping creators predict their rendering and AI jobs while enabling node operators to efficiently provide computing services. This also helps to promote the project's deflationary model, shaping the scarcity of the token asset.

The following will provide further details on the BME release plan.

New BME Model: Introducing a Burn Mechanism and Points System to Enhance AI Predictive Capabilities

Render Network's new BME (Burn Mint Equilibrium) model introduces a series of significant changes aimed at providing supply and demand balance for the network and improving the predictability of rendering and AI job services. This model not only helps creators better predict the costs of rendering and AI jobs but also encourages node operators to provide computing services more efficiently, thereby enhancing the overall performance of the Render network.

In the BME model, the RNDR token is no longer just a medium of exchange but has more functions. One important change is the introduction of a burn mechanism, where RNDR paid by users for tasks will be burned. Specifically, 95% of the RNDR paid by users will be burned, while the remaining 5% will be donated to the RNDR Foundation. The implementation of this burn mechanism is expected to gradually reduce the supply of RNDR tokens, thereby lowering the risk of inflation.

In addition to the burn mechanism, the new model also introduces a points system that allows service providers to earn points based on the network services they provide and receive RNDR emission rewards based on their points ratio. This incentive mechanism is expected to attract more computing resource providers and rendering nodes to join the Render network, thereby improving the network's availability and performance.

The Emission Plan Also Adjusts the Token Economic Model of RNDR, Whether There Will Be Positive Effects Remains to Be Seen

According to the emission plan, a total of 6.84 million RNDR tokens will be emitted each year, which will be distributed to various participants, including node operators, liquidity providers, creators, computing nodes, and Sol token upgrade rewards. This distribution is expected to ensure a balanced allocation of tokens within the Render ecosystem.

It is particularly noteworthy that, according to the emission plan, the annual inflation rate of RNDR tokens will be maintained at 1.8%. However, the new model also adds a burn mechanism for RNDR. According to the Render network usage report, since October 2023, network usage has shown a steady growth trend. Based on the payment volume in October 2023, the estimated amount of RNDR tokens burned within a year is 4,053,600, resulting in an annual burn rate of 1.1%. Considering these factors, the actual annual inflation rate of RNDR tokens is expected to stabilize around 0.7%.

In summary, Render Network's new economic model introduces a series of changes, including a burn mechanism and a points system, which are expected to enhance the stability and predictability of RNDR tokens. As the usage of the Render network continues to grow, RNDR tokens are expected to gradually enter a deflationary state, creating more favorable conditions for the sustainable development of the network. The implementation of this model will bring more opportunities and challenges to Render Network and its ecosystem in the future.

Opportunities and Challenges Coexist, Whether RNDR Can Undergo Significant Changes Remains to Be Observed

The official launch of the BME economic model for the Render project marks a new development stage for the project, bringing a series of opportunities and challenges for its ecosystem and the future development of RNDR tokens. This initiative is expected to not only improve the performance of the Render network but also help reduce inflation risks, thereby providing users and participants with more stable and sustainable rendering services.

However, the new economic model also faces some potential issues and challenges, including how to ensure the effective operation of the burn mechanism and how to attract more computing resource providers and rendering nodes to join the network. The Render team has shown a high level of commitment and will continue to work on optimizing the economic model, closely monitoring user feedback and market reactions to ensure the project's sustainable development.

As time goes on, we will closely monitor the development of Render and RNDR tokens in the decentralized rendering field. Notably, in the third quarter of this year, the Render network has achieved a series of significant milestones, including large-scale projection mapping rendering and the processing of the first light field rendering on the network, all of which are part of spatial rendering. With the increase in emerging spatial rendering work and the network's improved support for local Cinema4D files, the autumn growth will become an important turning point, and these changes are expected to be increasingly applied by the end of the year, with this growth trend likely to continue into early 2024.