Provider Incentive Pilot 3

[lechenghiskhan]

Background

To date, Akash has completed two Provider Incentive Pilots. The first passed in February 2024 and the second passed in November 2024.

These pilots have brought over 800 total GPUs onto Akash Network and as of the writing of this proposal, PIP02 is fully committed to the following models and terms:

GPU Model	Count	Committed Cost	Weighted avg term (months)
H200	88	$1,902,672.00	12.00
H100	456	$5,804,993.76	9.37
A100	160	$2,310,537.60	12.00
RTX 4090	104	$318,067.20	12.00

Reporting on PIP01 and PIP02

Public PIP01 reporting

Public PIP02 reporting

To date, Overclock Labs, has returned nearly 500,000 AKT generated by these GPUs back to the Community Pool. The reports linked above are publicly available.

The next step

The PIP programs were low-risk pilots for learning which GPUs were best, discovering capable providers, testing/building essential software, and creating the operational and support frameworks to ensure long-term success. We will leverage the same phased approach established through the PIP programs that will inform various aspects of Akash’s Starcluster Program, which brings hardware ownership directly to Akash.

The Akash Core team proposes a phased approach as a precursor to Starcluster that will take the form of a third Provider Incentive Pilot (PIP03). PIP03 will help:

1. Qualify and validate tenants for newer, more powerful GPU models
2. Build a demand pipeline before fully committing to hardware acquisition
3. Sizing the program in terms of the number of GPUs

Provider Incentive Pilot 3 - Budget

The third Provider Incentive Pilot will focus on three of the newest GPU models in smaller quantities on 12-month contracts to assess performance and develop a customer base for a successful launch of the Starcluster Program: NVIDIA's B200, RTX PRO 6000, and 5090 GPUs, according to the following breakdown and estimates:

Model	B200	RTX PRO 6000	RTX 5090
Quantity	32	24	24
$/hr cost est	$3.80	$1.50	$0.60
Term (months)	12	12	12
Total cost est	$1,050,624	$311,040	$124,416
Sub Total	$1,486,080
Vol buffer (35.31%)	$524,735
Grant Total	$2,010,815

Benefits

1. Greater flexibility. 12-month contracts afford the network greater flexibility and lower financial commitments.
2. Increasing confidence. By bringing on a smaller quantity of GPUs, we will be able to conduct thorough customer qualifications and appropriately scale/develop a demand pipeline that will create greater conviction in the GPU models and quantities pursued by the Starcluster Program.
3. Reducing risk. By honing in on the exact GPU models Akash’s customers are looking for via PIP03, the risk of overcommitting to purchased hardware is dramatically reduced.

Program Administration

The Pilot Program Administrator (PPA) will continue to oversee all administration responsibilities. Anyone can apply to be the PPA, provided they meet the following criteria, which were outlined in the previous pilot:

• Should have extensive experience in managing the community.
• Must possess deep expertise in managing Akash providers.
• Should be publicly known and respected within the Akash Community.
• Should have contributed to the Akash open-source repositories.

Responsibilities:

• Commit time and resources towards administering the program.
• Disclose all payments to the public and maintain a strict record of all costs that are subject to third-party audit, if necessary.
• Provide server management and support to participants.
• Provide responsible settlement services (e.g., AKT to USD) for participants as needed.
• Builds tools for verifying compute.

Limited Market Impact & Transparent Reporting

Limited Market Impact

Overclock Labs will custody the requested funds on behalf of the Akash Network in a new, distinct wallet so that funds from any other source are not commingled.

All funds will be liquidated and managed in a manner that ensures minimal impact on the market. These funds will be managed with the same care and attention as all previous Community Funding Proposals with liquidations done in a fashion that will not adversely affect the market. In practice, the effort of this liquidation will add depth to the AKT market for buyers looking to enter.

Transparent Reporting

All costs and records will be made publicly available through reports to ensure maximum transparency and accountability.

Support & Expenses

The PPA will be responsible for technical and logistical support ranging from server management and settlement services (AKT to USD) to building and managing tools necessary for verifying compute resources.

Expenses incurred will include, but are not limited to: transaction and settlement fees, support and bounties paid to insiders or vendors, applicable taxes, and software.

At the end of this program, just as was done with Prior PIPs, all revenue collected by the Akash Network Core Team, net of expenses, will be returned to the Community Pool.