papers/experience-ledger-dso/sections/10-economic-model.tex

\section{Economic Model}


\subsection{Cost Breakdown}

\begin{table}[t]
\centering
\caption{Experience Ledger Operational Costs (Annual)}
\label{tab:costs}
\begin{tabular}{lcc}
\toprule
\textbf{Component} & \textbf{Cost (USD)} & \textbf{Notes} \\
\midrule
\IPFS{} pinning (3 nodes) & 1,200 & 100 GB storage \\
Arweave archival (52 versions) & 15.60 & 200-year guarantee \\
On-chain transactions (104) & 10.40 & 2× per week \\
Embedding generation & 500 & ZenEmbed API \\
LLM introspection (extraction) & 2,000 & GPT-4 / DeepSeek \\
Governance platform & 0 & Open-source \\
\midrule
\textbf{Total} & \textbf{3,726} & \multirow{2}{*}{vs. \$50K+ for single fine-tune} \\
\bottomrule
\end{tabular}
\end{table}

\textbf{Sustainability}: A 501(c)(3) non-profit (\Zoo{} Labs Foundation) can sustain this with modest grants or community donations. For comparison, training a single 70B model from scratch costs \$2--5M.

\subsection{Incentive Alignment}

\textbf{Data Contributors}:
\begin{itemize}
    \item Earn KEEPER tokens proportional to contribution quality
    \item Receive inference credits (1 credit = 1000 tokens)
    \item Gain reputation for governance participation
\end{itemize}

\textbf{GPU Operators}:
\begin{itemize}
    \item Earn fees for inference ($\sim$\$0.02/query)
    \item Stake KEEPER as collateral (slashed for incorrect proofs)
    \item Priority routing for high-reputation nodes
\end{itemize}

\textbf{KEEPER Holders}:
\begin{itemize}
    \item Voting power in \DAO{}
    \item Revenue share from commercial API usage (20\% allocated to treasury)
    \item Deflationary tokenomics: 10\% of fees burned quarterly
\end{itemize}