October 31, 2025
Article
HyperCycle Primitives:
On-Chain Representations & Tokenomics
Introduction
HyperCycle engineers network infrastructure designed to support large-scale AI collaboration. It enables AI agents to transact, communicate, and coordinate directly with one another without intermediaries, unlocking real-time finality, with scalable throughput, and seamless micro-payments.
Built for developers, enterprises, and innovators, HyperCycle turns isolated AI models into interoperable agents on the Internet of AI (IoAI) for higher intelligence or more revenue. Its architecture supports autonomous operation, royalty-based agent deployment and integration with existing systems, while maintaining high standards of privacy and compliance.
HyperCycle lays the foundation for a new kind of AI-native economy, where intelligence flows freely, value moves instantly and collaboration becomes the default.
HyperCycle: History
HyperCycle was founded in October 2022 by a team of seasoned professionals in AI, telecommunications and web technologies. Their objective was to develop a peer-to-peer network for multi-agent systems, connecting AI entities directly without intermediaries.
HyperCycle utilises Toda/IP and Earth64 technologies.
The HyperCycle TGE took place on May 12th 2023 with the following launchpads: SingularityDAO, Seedify, Poolz, and Vent Finance, raising over 8 million USD.
HyperCycle sold 280k+ Node Factory Licences in its first year, reaching unicorn status, and has sold 600k+ Node Factory Licences to date.
On-Chain Representations
HyperCycle uses on-chain representations that point to native assets, providing asset owners with a unique, verifiable digital record of ownership, securely stored in the owner’s cryptographic wallet.
HyPC
Supply:
The maximum supply of the HyPC token is 2,147,483,648, HyPC is an ERC-20 token on Ethereum.
Utility:
HyPC acts as a place holder for CHyPC (c_HyPC) pointers on mainnet and can be converted to CHyPC at a 1:1 ratio. The CHyPC is married to a License to create a Node Factory. 1024 CHyPC per Level-10 are required. CHyPC are native assets represented on the Ethereum chain as a ERC-721 Non fungible token (NFT) at levels 10 to 19, mirroring the Node Factory Licence structure.
HyPC Tokenomics:
Node Factories
Node Factories are represented on the Ethereum chain as a ERC-1155 Non fungible token (NFT).
S and R Tokens:
Upon the establishment of a Node Factory (the “marriage” of CHyPC and a Node Factory Licence), the Node Factory acquires two tokens: the S token and the R token. The quantity of S and R tokens corresponds to the level of the Node Factory.
For example:
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A Level‑10 Node Factory, set up with a Level‑10 Node Factory Licence and 1,024 HyPC, would acquire 1,024 S tokens and 1,024 R tokens.
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A Level‑11 Node Factory would acquire 2,048 of each token.
The S token represents a “Share” in the Node Factory and is used for voting on management actions, proportional to the percentage of ownership held by each participant. This mechanism is particularly useful for Node Factories with multiple owners, whereas a sole owner would retain 100% of the S tokens and full voting rights.
The R token represents “Revenue” of the Node Factory and is utilised for distributing income among all active participants in its operations, such as the operator, hardware provider, or AI developer.
These mechanisms, bound within smart contracts, ensure transparent, verifiable, and secure governance of the Node Factory.
Proof-of-n²-Work
The Node Factory utilises The Proof-of-n²-Work consensus mechanism that leverages deterministic distributed computing (DDC). In each “heartbeat” cycle, nodes perform local computational and communication tasks.
Unlocking Network Nodes:
The Node Factory has the ability to unlock, through the Proof-of-n²-Work consensus mechanism, 1023 Network Nodes (per level 10), in addition to the initial Boundary Node (which can also be converted to a Network Node), over an estimated timeframe of 8 years.
HyperCycle Node Factories operate at these levels
Software Stack:
Network Nodes in a Node Factory consist of the following software:
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Virtual Machine (VM): The ability to programme tasks and payment workflows.
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Transaction Machines (TMs): Handles fast, secure micropayments.
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AI Machines (AIMs): For AI Agents and models.
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Node Manager (NM): Keeps tasks running smoothly.
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Merkle Module: Makes sure transactions and records are secure.
HyperCycle Node Factories empower owners, operators, businesses, developers and educators to actively participate in the Internet of AI (IoAI).
Expansion to BASE chain
On the 24th May 2025 HyperCycle strategically expanded to the BASE chain through a value asset transfer as part of the first phase of C.8.
This initiative provided current owners of the Node Factory with the option to own and manage an identical amount of assets on Base, which have the ability to enjoy significant improvements. This extension of licensing and functionality included the launch of a new type of representation of Node Factory, the Advanced Node Factory Enclosure (ANFE).
This enabled seamless migration of $2.5 billion worth of asset value via ANFE’s representation on Base. Anchored in ERC-721 software licences, this asset value transition was facilitated by HyperCycle’s strategic use of on-chain representations that point to native assets, ensuring that while licensing rights are verifiable, the core assets are independent of traditional ledger-based systems.
ANFE
The Advanced Node Factory Enclosure (ANFE) is the open secure enclosure for further network connectivity components and AI agent distribution, which ensures secure distribution of rights to run advanced AI agents on the Internet of AI (IoAI).
Key Points:
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Utilises the same licensing structure (HyPCL) as a Node Factory.
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Operates with the same functionality and software stack as the Node Factory.
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Delivered ready to go, preconstructed from CHyPCe and a Node Factory Licence.
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No S or R tokens.
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Represented on Base.
The Advanced Node Factory Enclosure (ANFE) provides the following benefits:
Low cost fees - Actions like appointing a manager or adding licenses to your ANFE cost pennies and settle within seconds on the Base chain.
Simplified management - ANFEs are represented on Base as a single ERC-721 Non fungible token (NFT) with no S or R tokens for simplified management.
Software Enclosure - In addition to the CHyPCe and Node Factory Licence the ANFE can be pre-loaded with additional software products.
CHyPCe
Supply:
The maximum supply of CHyPCe (c_HyPC) is 2,147,483,648. CHyPCe are native assets represented on Base as an ERC-721 Non fungible token (NFT) at levels 10-19 mirroring the Node Factory Licence structure.
CHyPCe are not individually tradeable on open markets. Therefore only a maximum of 2,097,152 level 10 bundles (1024 CHyPCe) can ever be purchased and only as part of a preconstructed ANFE. The remaining 2,145,386,496 CHyPCe must be unlocked through Proof-of-n²-Work, bound to the network nodes unlocked. The estimated timeframe for an ANFE to achieve all unlocks is 8 years.
Software Utility & Production
The ANFE has the inherent capability to enclose many other software products that Node Factory owners may wish to produce,
such as AI agents, performance enhancers, optimisation tools and more, in addition to the Node Factory Licence.
These supplementary products can enhance node intelligence, improve operational efficiency and increase reward‑earning potential, often delivering all three benefits simultaneously.
Each time an ANFE unlocks a new Network Node, it also unlocks any other software licences pre‑loaded into the ANFE. As a result, every Network Node unlocked via an ANFE is provisioned with the full suite of included capabilities.
This model, underpinned by the technical capabilities of the ANFE, can be perpetuated by both HyperCycle and ANFE stakeholders. It strategically positions the ANFE as a platform with the capacity to produce software product licences through structured agreements with third‑party software providers, fostering mutually advantageous partnerships and delivering sustainable, long‑term value creation.
The following software products are available to purchase, pre‑loaded, onto the ANFE at the time of order:
Aimifier, Quantum Verify, IoAI Box, IoAI Federated, IoAI Registry, Open IoAI, Space Nodes and IoAI Search.
Contract Address:
On-Chain Representations: ETH
HyPC: 0xea7b7dc089c9a4a916b5a7a37617f59fd54e37e4
HyPCL (Node Factory Licence): 0xd32CB5f76989A27782e44c5297AAba728Ad61669
c_HyPC (CHyPC): 0x21468e63abF3783020750F7b2e57d4B34aFAfba6
ERC-1155 (Node Factory): 0x4BFbA79CF232361a53eDdd17C67C6c77A6F00379
On-Chain Representations: BASE
c_HyPC (CHyPCe): 0x674DdC6e324142713431a21D3E1BD0140cC700f7
HyPCL (ANFE Licence): 0x282b61FcBA0d77a8eE3e0De225AF6BFC11f44659
Advanced Node Factory Enclosure (ANFE): 0x8c0075D087de9588DdF5c1441dF39828d695bc2f
c_AIMF (Aimifier)
0x998d350C59Fd7a4a524fcc987Adc811f25b886F4
c_IAIb (IoAI Box)
0x1dcbEEc07614aB8b3AEe828f19a9299ad0772eC1
c_IAIf (IoAI Federated)
0xf319fea203EB534BE138F86682B42d359424e905
c_IAIr (IoAI Registry)
0xaaA03DBEa02373Ce123b02B590265De428B17172
c_IAIs (IoAI Search)
0xe283deFF3736C12E313C19dF6FBbC896fcf246d3
c_OpnAI (Open IoAI)
0x4795f8af5c8d2D9bceA287d7448435879A6d46dF
c_QntV (Quantum Verify)
0x1512D4A43596a34593D6913462068F089879E8Cc
c_SpcN (Space Nodes)
0x2Be0d36d961E15879C865B0fA828710C65f60940
Bridging Web3 and Traditional Business
HyperCycle utilises cryptographic technology whilst adopting proven enterprise methods. It leverages deterministic consensus, NFT-based representations and other cryptographic primitives for security and data protection, whilst grounding itself in familiar practices such as licensing models, structured partnerships, and compliance. This dual approach lets enterprises adopt advanced cryptography without abandoning established frameworks. Participants can engage as crypto‑native actors or conventional stakeholders. By uniting cryptographic innovation with business‑oriented assurances, HyperCycle facilitates an Internet of AI open to developers, enterprises, investors, educators, and autonomous AI agents.
For detailed information on the concepts and terms referenced in this article please read the whitepaper:
HyperCycle Core 1.08