NuNet Financial Report 2022 and Outlook for 2023
NuNet has covered much ground in 2022 toward achieving its mission to be the leading platform of seamless, low-cost compute processing.
Summary: Reaching New Heights
NuNet has covered much ground in 2022 toward achieving its mission to be the leading platform of seamless, low-cost compute processing. Over the year, NuNet built a strong foundation for future growth as we pushed the boundaries of technology to deliver much-needed decentralized compute processing services. During this period of activity, NuNet structured operations, formed a motivated management and technology team, refined the product development model, and integrated short, medium and long-term strategies in line with current industry, market conditions and prospects.
NuNet adheres to the principals of transparency and accountability when it comes to our finances. As such, it is our responsibility and desire to provide the community with a high level overview of NuNet financial position in context of the overall business strategy.
The NuNet treasury balance remains strong at year end December 31, 2022 with the amount of $3.1 million, down from $5.2 million as of 31th December 2021 following a year of intense development. Based on the current NuNet burn rate as proposed on the 2023 Budget, this translates to 1 to 1.5 years of uninterrupted operation on a most conservative estimate. Nor does this calculation take into account the R&D and minting reserve in NTX tokens which stood at a near all-time high after a rebound in early 2023.
Looking ahead on the operational front, NuNet is thrilled to announce that we are close to achieving the major milestone of launching the Public Alpha version in 2023 to mark the next phase of NTX token utility!
2022 Achievements
NuNet has delivered concrete operational results this year
- Formation of a 25 members core team (14 developers, 6 marketing and operations and 5 core management team — including CEO, business, marketing, HR leads and financial controller).
- Set up the NuNet platform development model, align the team, operations and corporate structure accordingly, in terms of IT infrastructure and development flow, marketing activities, social media presence, and community building.
- Importantly, NuNet has the technical development roadmap, fundamentals of marketing, business development and financial sustainability and HR strategies.
Platform Developments
This year NuNet was awarded grants for two projects via Cardano Project Catalyst funding:
- Fund7 — Decentralized SPO Use Case
- NuNet is actively developing this use case.
- Fund8 — Decentralized GPU ML use case
- NuNet has completed this use case and successfully tested onboarding GPUs onto NuNet Platform.
- Successfully launched a testers program and onboarded community devices to the platform.
Tokenomics
- Launch of network tokenomics aspects was planned for early 2022 on the ETH network based on NuNet’s private Alpha release prior to TGE.
- NuNet released its public Alpha with integration to Cardano — this took more time than planned due to technical, organizational and external reasons. An Alpha version that compensates compute providers for use cases in NTX-ADA is scheduled for Q1 2023.
- Full-fledged network tokenomics and token design deployment to be built during 2023 and released at the end of that year.
Marketing and Community Building
- Launch of updated website and information hub in Q4 2022.
- Launch of testers platform on Discord and successful onboarding of 250+ Compute Providers.
- Built a strong online presence on Twitter, Telegram, LinkedIn and Discord.
- Presence at Rare Bloom event in Colorado, Cardano Community summits in London, Wiesbaden, Brisbane, Oslo, Madrid, LA, Houston, Bangkok and physical presence at the Event in Lausanne, Switzerland.
- Launch of Earndrop and NFT program which sees community members rewarded for aiding in the development of the NuNet platform.
Financials
NuNet deployed $2.5 million of TGE receipts on December 31, 2022. Some 46% was spent on developing the platform, corporate structure and management and 54% was used for non-development activities (setting up and supporting NTX external tokenomics, ensuring NTX token liquidity and related costs). This cost structure was forged by the necessity to build a strong foundation to start the development and operations. After foundation building in 2022, NuNet forecasts to spend a similar amount in 2023, of which 80% is earmarked purely on platform development activities.
Treasury Balance
NuNet Treasury Balance
NTX/BTC Dynamics
The dynamics of the NTX token in comparison with BTC (as a representative of the situation in crypto market) from launch day till February 15, 2023, the day this Report was completed, is visualized in the graph below.
NTX/BTC Dynamics
Distribution of Supply
The distribution of the total supply of issued tokens at the end of the reporting period of December 31, 2022 is shown in the graph below.
Distribution of NTX Supply — Distributed & Circulating and At NuNets Disposal
Distribution of NTX Supply — Unlocked & Locked Units of NTX
Team
Key Leadership Team
NuNet formed its key management team in 2022 to lead the development of the platform in 2023. The team’s internal structuring is aimed to streamline the development process and improve platform functionalities. With a clear vision in mind, the team worked diligently to identify the key areas of focus and establish a strategic roadmap for the upcoming year. The team’s efforts have resulted in increased efficiency and productivity in line with a strong foundation for the future growth and success of the platform. As NuNet moves into the new year, it is poised to capitalize on its progress and deliver a robust and reliable platform that meets the needs of its users.
Team Structure
NuNet has recently published its team organizational structure and will continue to update the structure as the team develops and expands.
NuNet Team Organizational Structure
Development Roadmap
As we move into 2023, NuNet is excited to share our updated development roadmap with our community and supporters. The NuNet vision is to create a fully decentralized global economy of computing based on a platform that shares individual compute resources in a decentralized cloud. 2023 will be a pivotal year towards achieving that goal. Due to the complexity of research and development involved in building the platform, as well as based on experience from 2022, we will reduce the planning horizon and update yearly roadmaps only.
In this 2023 roadmap, NuNet outlines the key milestones we aim to reach in the coming year, with a focus on delivering a robust and user-friendly platform that empowers developers, users, and organizations to harness the full potential of decentralized computing. We are committed to building a sustainable and scalable ecosystem that supports innovation and collaboration, and look forward to sharing our progress and achievements with you in the months ahead. Most importantly, NuNet invites the community to monitor and participate in the development and testing via our development portal.
NuNets 2023 Development Roadmap
Technical Milestone Details
- Integration of libp2p to DMS and seamless replacement of the nunet-adapter which currently uses py-ipv8 for p2p networking.
- Filter Out features of libp2p, compare with functionality already obtained by the nunet-adapter and layout replacement api from libp2p
- Make clear the implementation effort needed and list specific undertakings
Data Persistence/Storage Design Phase
- Considering that personal devices have a high availability turnaround, the network should be able to switch processes while keeping data. This relates to Cardano node deployment (SPO Computing use-case) where the node has to be available 24/7 and it downloads a copy of the blockchain on each instance. To avoid process switching and the redownload of the blockchain, data persistence across devices must be possible.
Device Health Check
- Design and implement
- Network status dashboard to monitor the NuNet platform.
Dev-Ops / Platform Engineering
Platform Security — Architecture and Design
- Encompasses all security aspects, including firewall between containers deployed on the network and machines (in both directions), securing communications between machines and different algorithms, setting up internal infosec policies and practices, designing platform security infrastructure, pentest teams and programs, constant attack vector analysis, a feature that is both technical and organizational.
Earndrop Portal
- NuNet is running an extensive Earndrop program where the community can participate in the developments of the platform and be rewarded for contributions. This will primarily be done via utility NFTs which integrate into the platform.
- NuNet enables SPOs to run computing workflows on community provisioned hardware, increasing resilience and aiding decentralization. The project is financed via grant from Cardano Catalyst Fund7. See project’s short summary and full proposal on Catalyst or GDrive.
- Develop platform functionalities needed for real use-case of Fake News Warning Showcase application, developed by NuNet as a part of Private Alpha release.
Decentralized GPU — Single GPU
- NuNet platform that connects decentralized GPU hardware providers and enables secure, safe and decentralized access to GPUs for Cardano. See project scoping discussion with external stakeholders and full description as a Cardano Catalyst Fund8 proposal on the Catalyst platform
- Data is an integral part of computing. The decentralized computing economy needs an equally decentralized data economy — the boundary between the two is vanishing. We will design a NuNet data mesh to allow all machines, all services running on those machines to search, match to specified needs, ingest, use and compensate [for usage, storage] data in the most granular way.
- The data mesh infrastructure used by NuNet network will be created via specifying, designing and maintaining data related APIs. Data description API, Data ingestion API and Data streaming API — whether separate or form a single API — API specific work is tracked via (epic &19).
- All machines act in the network as completely decentralized nodes, but are owned by physical or legal persons. To establish this relation, each machine has to be identified by a key that can only be signed / read by the owner. This also applies to containers that will run on NuNet.
- A program with UI for device onboarding and activity monitoring, with a UI where a compute provider can set resource allocation, monitor deployments, track earnings and manage device availability. This program will be responsible for dependency installation, p2p communication management, advertisement of deployed services and health status reports. This program will eventually replace and perform the tasks of the onboarding script and adapter.
- A major upgrade from the onboarding script is the ability to manage device fleet from the app.
Public Alpha/Mainnet
The Public Alpha launch is a crucial milestone for NuNet in its mission to create a fully decentralized global economy of computing. The launch will allow us to showcase our platform to a wider audience, gather feedback and make improvements before full launch.
This is a significant step towards achieving our long-term vision of providing a secure, decentralized, and affordable platform for global compute resources. By enabling anyone to rent out idle computing resources or use those of others, we aim to create a more equitable and accessible economy where people and organizations can benefit from a fair and open marketplace. The Public Alpha launch is an opportunity for us to demonstrate the power and potential of our platform, and to build on the momentum already established in the blockchain and decentralized computing industries.
As NuNet moves forward to the next stage of development we wanted to share this Countdown to Public Alpha blog to give an indication as to when Public Alpha will launch and the features included. We have created this countdown chart to monitor what tasks have been completed in relation to the launch of Public Alpha.
NuNet Is Hiring!
NuNet currently has a number of open positions for various roles within the team. If you have the skills and desire to join us in our journey, you can find more information and contact us through our careers page.
About NuNet
NuNet lets anyone share and monetize their compute resources, turning cloud computing power from a centralized service into an open protocol powered by blockchain. Find out more via:
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