Economics

In order for Maru to accrue value, it needs a token, and that token should provide a simple way for developers to pay for computation within Maru. In this chapter we will describe our solution to this.

Design Goals

Maru's economics design is informed by observing the failures and successes of other models that came before us. In synthesis, we make the following design goals:

1. Consistent, budgetable pricing
2. Composition strongly incentivized
3. Zero infrastructure overhead for developers
4. Incentive for investors to hold MARU and participate in the network

To these ends, we take the following high-level approaches:

1. Charge for computation, not data
2. Gas metered by number of STARK trace rows
3. Gas fee allocation based on dataflow topology

Charge for computation, not data

Charging for data - that is, charging per "query" of certain data is hard for several reasons. Firstly, queries are too difficult to price based on relative complexity and size of the data since, before they are executed, it's quite difficult to know how many resources will be consumed. This essentially pushes all pricing onto end-consumers. This leads to highly volatile prices, which are hard to budget for a runway-conscious developer. Even worse, this requires the end-user to pay on-demand for each query, requiring them to have GRT and sign a microtransaction for every query is egregiously bad UX. This, in turn, requires developers to set up a relayer to pay for the user's queries, and that relayer needs sybil-prevention. This pushes a lot of infrastructure costs onto the developer, increasing the cost in engineering-hours of adopting such a solution.

In a streaming context, there's also another problem - since all "queries" are defined at compile-time, the result of each "query" is the same once it's emitted from a stream. Thus there's nothing stopping parties from buying it once and "pirating" it to their peers, effectively reducing "query fees" to zero.

We avoid all of these problems by charging for computation instead of data. In other words, we meter fees based on the computational complexity of the operator(s) that produce a stream of data. Another way to look at it is to see it as "paying for the production of data" instead of data itself.

Gas Metering

If we charge for computation, we need a way of "metering" computation. In a decentralized system, this requires the network to "decide" how much gas a computation consumed. Blockchains do this via consensus, which we explicitly avoid in Maru. The other way to do it is to prove it. Conveniently for Maru, each STARK proof takes the number of trace rows as a public input, so we get a "proof" of the number of trace rows in a computation for free. The remaining question is the following: Is this a good metric for the computational cost of an operator?

The answer is yes. Why? Because proving cost dominates execution cost. And since every delta for every operator is run through an instance of our runtime, and the STARK prover cost scales directly with the number of trace rows of a given runtime instance, the total number of trace rows provides a very solid metric for the cost of computation.

It's totally OK that this ignores the cost of SNARK recursion because the number of recursive SNARK proofs to be generated is proportional to the number of STARK proofs to be accumulated. In other words, the SNARK prover cost is determined by the STARK prover cost, and trace rows directly measure the STARK prover cost.

Thus we define 1 unit of gas to be equal to 1 STARK trace row.

Gas Tank

So now we have a way to meter gas. But two questions still remain:

1. How is each unit of gas priced?
2. How are fees paid?

Since we prioritize price consistency, we have a very simple answer to the first question - 1 unit of gas is priced at 1 yoctoMARU. The tradeoff here made obvious by Solana is the lack of a fee market means the network must be highly spam-resistant and the supply of computation must always be able to fulfill its demand. Maru doesn't have a problem with the former because all of our source streams solve this problem for us - if we pull data from a blockchain, a blockchain will either halt or increase its gas fees, the latter of which is indistinguishable from normal operation from Maru's viewpoint. The latter should be easy-ish to deal with, as demand for computation only increases when new operators or source streams are added, neither of which can cause drastic spikes.

To avoid infrastructure costs and reduce complexity for developers, we use a "gas tank" model to answer the second question. Each operator has a balance of MARU attached to it that serves as its "gas tank". Then, when fees need to be paid, they are deducted directly from the operator's gas tank. If the operator's balance is insufficient to pay the fees, the operator is removed the dataflow, which in will block all downstream operators. Since this event would be catastrophic for any application, network participants are strongly incentivized to ensure there is enough MARU in the operator's account. Since prices are predictable, this should be easy to automate.

Gas Futures Market

As a way for passive token holders to participate in the network, we introduce a "gas futures market". This serves the following functions:

• Allow developers to have not just consistent, but fixed prices in any currency (USDC, ETH, etc).
• Provide yield to token holders who provide gas liquidity

A "gas future" is defined as the following:

1. The seller (developer) agrees to pay the buyer (token holder) a fixed amount of a specific token (USDC, ETH, etc) each epoch
2. The buyer (token holder) agrees to place a fixed amount of MARU into a specific operator's gas tank each epoch.

It seems like there are two potential problems with the futures market. Firstly, each operator has its own futures market, fragmenting liquidity. Secondly, investors who buy such a future from developers are betting against, not in favor of the price of Maru relative to the token chosen by the developer. However, we can assume there will inevitably be a secondary market, and a secondary market addresses both problems. It addresses the first problem by providing a way to trade futures on different operators, allowing liquidity to freely shift between operators. It addresses the second problem because a secondary market will inevitably allow traders to short-sell their gas futures.

Gas Payment

That leaves the third question, to which our answer is slightly more complicated. We split the protocol into "epochs", which are roughly 10 minutes long. Each epoch, the following occurs:

1. The total number of trace rows consumed by each operator is calculated and proven. This is the amount of gas that has to be paid for each operator.
2. The corresponding amount of yoctoMARU is deducted from each operator's account into a "rebate pool".
3. K% of the rebate pool is distributed to the holders of gas futures (see next section)
4. The rebate pool is distributed evenly across all worker nodes

Since workers are paid the same regardless of which operator they run, and operators may vary in terms of proving cost, it is important that operators are assigned to workers in a random-ish, unbiasable manner so that on average they earn a roughly equal income. In the hosted testnet, this will be trivial. Doing this in a decentralized manner is an open problem to which we have several avenues outlined in open problems.

Potential Drawbacks

Since the operator trace counts are proven, it's impossible for nodes to lie about how many trace rows they produced without being detected. If they do so anyways, they will get slashed. This eliminates the possibility for a wide variety of attacks involving lying about the amount gas consumed.

One potential issue with this protocol is that the amount of fees workers collect is proportional to the number of trace rows. That means workers potentially have the incentive to add extra useless trace rows to their STARK proofs to earn more fees. This can manifest in two ways - firstly by the prover submitting their own, less-efficient operator implementations to the dataflow, and secondly by inserting extra padding rows in each Aincrad execution trace. Since padding rows are the only legal row that does nothing, this is the only way a worker node could carry out this "attack".

The former is mitigated by market forces - developers will always prefer to pay for the more-efficient version. The second can be mitigated with a slight addition to the Aincrad STARK. We can add a new public input num_useful_rows, which is the total number of trace rows minus padding rows. Then the STARK can check this against the end of the program's execution, which the prover can't manipulate because the hash of the program's bytecode is included in the STARK. Then, in addition to verifying the proof, the verifier can check that the final trace length is the smallest power of two greater than or equal to num_useful_rows. This allows the verifier to detect when the trace is longer than it should be.

It's also prossible to do this by adding redundancy r to the operator assignments and comparing the trace length of each of the r STARK proofs, but this requires adding complexity to the process by which STARK proofs are submitted and it also duplicates work.

Benefits

1. It's easy for any honest node that meets the minimum stake requirement to be profitable as long as there is enough demand in the network. If there is not enough demand, then it will no longer be profitable, so the number of nodes will scale down until it is profitable. This acts as a sort of "market-driven auto-scaling".
2. There is a strong incentive for the developer community to come together and co-optimize their infrastructure, factoring out common sub-components and sharing the gas costs.
3. Investors have a strong reason to hold MARU, since they can earn yield by proving gas liquidity through the futures market.
4. Developers need no additional infarstructure to use Maru - no relayers to pay query fees and no authentication services to protect those relayers from spam.
5. Developers have consistent prices, potentially fixed prices if they so wish.
6. Developers don't need to hold MARU to use Maru.