Thread by @whp_wessel

Two important developments have been recently evolved for
@RenderToken:

1. Proposed tokenomics changing $RNDR from a simple ’17 ICO token to an utility token with clear value accrual

2. The flocking of Ethereum miners to the Render Network

Let’s dive in! 🧵

1/ First of all, what the heck is Render Network?

Founded by @JulesUrbach, it allows for the rendering of an artist’s work matching with a computer's spar GPU-capacity.

Already envisioned in 2009, Jules Urbach patented the token-based billing model for server-side rendering.

2/ There are two crucial advantages underlying Render Network's:

1. Pricing arbitrage: NVIDIA's monopoly in GPUs dictates the Cloud Giants pay 10x the price for 20% more efficiency compared to consumer GPUs.

This made $RNDR 79% cheaper than the median render farm alternative.

3/

2. Scalability.

It's common to reserve computation power at AWS/GCP/Azure.

Render Network has the ability to scale up to urgent demands without needing to pay exuberant costs

4/ This is because utilization rates are typically at 1% - an artist can easily reach an urgent deadline without paying surge pricing.

Utilization rate is the usage over total GPU capacity of the network.

5/ Render Network has proven a clear product-market fit:

In the first half of '22, 5.3M frames were rendered, a doubling from the year prior despite the fall in NFT activity.

This translates to 900K $RNDR spent, amounting to $225,000 rev using $RNDR fixed pricing per OB hour.

6/ What's cool is that some of the greatest NFT artists are using @RenderToken themselves:

@beeple, @fvckrender, @muratpak, @Ness_Graphics

7/ Render Network runs on spar GPU-capacity of computers.

It's no surprise Render Network has become a home ground for ETH miners after the successful Merge.

In fact, the wave of new node-operators forced Render Network to pause the application for node-operators.

8/
Let's sum up what we know about @RenderToken thus far:

-It's a network of distributed GPUs which renders an artist video or NFT

-Render's USP are pricing arbitrage & scalability

-Used by the NFT artist chads

-ETH miners getaway postPoW

9/ So hear me out.

What started as a simple ICO token is getting redesigned from the ground up.

Following Proof of Physical Work's fav @helium & @Hivemapper, $RNDR is proposed to use a burn/mint model, opening up value accrual to its holders.

10/ There has been push-back from the community.

Should the token should be accretive to investors?

This would only confuse the artist and node-operators from the utility the network creates.

11/ @multicoincap led the 30M round in Dec of '21.

Their investment associate @shayonsengupta recently proposed the tokenomics change in RNP-001

github.com/rndr-network/R…

12/ In a similar fashion to @helium, the artist would burn X USD of $RNDR for the node operator to render the project.

Using newly minted tokens*, Node operators are giving Coupon and Availability rewards.

*a 20% supply increase is proposed

13/ If the emissions are scaled down while demand has not yet evolved to sustain node operators, a net emissions cap is necessary.

This cap will still provide node-operatos with incentives after the max supply has been reached.

14/ While @RenderToken has clearly been successful in providing a 10x better product to its users, the network is positioning itself for the next wave of demand.

15/ Aside from the new tokenomics, the move to @solana and the direct implementation of @metaplex, support for #redshift3d and #cinema4dnext as well as @OTOY's Octane will position Render Network for the coming decade where rendering demand will explode.

medium.com/render-token/r…

Interested in reading more content from Chapter One Labs?Check out the @chapterone library!

threadsby.me/its/chapterone
FYI: the author holds $RNDR, NFA, etc