Agencies

Agencies form the infrastructure of the MxAgent network, operating the essential hardware and software that keep the decentralized system running. Their primary function is to serve AI Agents to consumers, facilitating the accessibility and reliability of the network.

Dual Revenue Streams for Agencies

1. Usage Fees: Agencies earn $AGENT from the Usage Fees paid by developers or users for accessing AI Agents. These fees are allocated to agencies based on an exponential rebate function, ensuring a fair distribution that rewards agencies in proportion to their contributions.

2. Node Operate Rewards: Agencies also benefit from the network's annual issuance of tokens. A 3% issuance is distributed among agencies according to the number of AI Agents they have deployed. This incentivizes Agencies to actively deploy and manage AI Agents, and to provide Proofs of Agent (POAs) to verify accurate deployment.

Staking and Allocation

To participate as an Agency, a minimum stake of 10,000 $AGENT is required. This staking serves as a commitment to the network and is proportional to the query load managed by the Agency. Agencies are encouraged to stake more $AGENT to increase their capacity and improve their service quality.

Delegation Dynamics

Agencies can augment their stake by accepting $AGENT delegations from Delegators. This allows them to scale up their operations and serve more queries. However, there is a cap on how much they can leverage from Delegators--up to 16 times their initial stake. Should an Agency become over-delegated, it must increase its own stake to utilize the additional $AGENT.

Reward Variability

The rewards an Agency receives are not fixed; they depend on various factors such as the initial stake, the amount of $AGENT delegated, the quality of service provided, and other operational metrics. This dynamic system ensures that agencies are motivated to maintain high standards and contribute meaningfully to the network.