HyperCycle Core 1.08

4.1.2 The CHyPC/CHyPCe Token: Cryptographic Identity and Economic Backing
 

Node Factory identities are securely established through specialized tokens known as CHyPC tokens (on Ethereum) and CHyPCe tokens (on Base). Each CHyPC or CHyPCe token economically backs a Node Factory by containing a quantity of HyPC or HyPCe tokens exactly equal to the total number of Network Node Licenses the Node Factory can produce.
 

This explicit economic backing serves to prevent Sybil attacks by imposing a meaningful economic cost on identity creation, aligning factory owners' incentives with network health and security. Additionally, it forms the foundational basis of a Node Factory’s digital identity, an identity progressively reinforced through cryptographically verifiable Tilling data that accumulates over time. This method creates a transparent, auditable, and economically-backed record of operational performance for each license.
 

4.1.3 Algorithmic Description of Node Factory Splitting
 

Node Factory splitting enables an existing Node Factory to structurally subdivide into independently operating sub-factories, preserving the independent existence of the original parent license. Splitting spawns two lower-level Node Factories rooted at the already existing child licenses of the parent license. Crucially, the original parent license at level 10 retains its separate, isolated status and continues representing the right to run a node, and can unlock exactly one additional Network Node license once all subordinate level 1 licenses have been activated.
 

Splitting a Node Factory involves significant operational and economic considerations and should be undertaken only when compelling strategic or operational reasons exist. The explicit steps of the splitting process are as follows:
 

1. Temporary License Deactivation: Licenses associated with a Node Factory undergoing splitting must temporarily cease active participation, resulting in temporary node downtime. Licenses under splitting do not accumulate Tilling Scores during this downtime. This procedure represents the current operational standard.
    

2. Spawning Lower-Level Node Factories: The original parent license spawns two new Node Factories rooted at its immediate child licenses. The parent license itself retains independent existence as a separate node license at its original hierarchical level.
    

3. Partitioning of CHyPC/CHyPCe Collateral: Collateral associated with the parent license (CHyPC/CHyPCe tokens) is carefully partitioned as follows:
    

• The parent license retains sufficient HyPC collateral for its own cryptographic identity backing (2 HyPC for level 10, 1 HyPC for levels 9–2).

• The remaining CHyPC collateral is divided equally between the two newly spawned lower-level Node Factories. Each child receives an amount equal to one less than a power of two, including the necessary [1] HyPC for its own potential future split and collateral for all descendant licenses.

• No new CHyPC or CHyPCe tokens are created during this operation.

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4. Establish Independent Node Factories: Each spawned lower-level Node Factory, paired with its allocated CHyPC/CHyPCe collateral, becomes independently operational, immediately valid for operation and accumulation of Tilling Scores. In the special case of splitting at Level 2, the resulting child licenses are not Node Factories but isolated Network Node Licenses, each independently operational with their allocated collateral.
 

5. Reactivation of Licenses: Licenses previously taken offline during splitting resume participation once splitting is complete, now authorized under their newly independent licenses. These licenses immediately resume accumulating Tilling Scores and operational data.
 

Historical Tilling data and operational histories are preserved across splitting events, ensuring continuity, transparency, and verifiability within the HyperCycle node ecosystem. Splitting remains a significant operation requiring careful planning and execution.
 

4.2 The Tilling Algorithm: A Proof-of-Performance Protocol
 

Tilling is HyperCycle’s cryptographic process for continuously verifying nodes’ operational performance. It plays a critical dual role in securing the network by ensuring nodes operate reliably and in determining the unlocking of new Network Node Licenses, based directly on proven, quantifiable performance.
 

4.2.1 Formal Definition and Calculation of the Tilling Score
 

Tilling is a continuous proof-of-performance mechanism that cryptographically verifies operational quality across the HyperCycle node ecosystem. Specifically, it captures metrics reflecting node reliability, computational effectiveness, and operational integrity. These metrics determine whether and when licenses become eligible to unlock additional Network Node Licenses. 
 

Through continuous verification, Tilling ensures all participants maintain a high standard of performance, aligning incentives and reinforcing security and reliability throughout the Internet of AI.
 

4.2.2 Metric Incorporation: Uptime, Computation, and Reputation
 

The Tilling Score quantifies operational performance, combining three fundamental metrics into a single numerical score:

Uptime

Measures the percentage of network cycles during which a node is online and responsive, serving as a baseline operational requirement.
 

Computation

Assesses both the quantity and quality (e.g., accuracy and timeliness) of computational tasks performed by the node.

Reputation

Evaluates operational integrity, including adherence to network protocols, consistency of successful task completion, and reliability of transactions.
 

Each metric forms a performance ratio Ri​ calculated as follows:

Rᵢ = Pᵢ × F(t)

where:
 

• Pᵢ represents the measured performance (expressed as a percentage) for metric i ∈ {u,c,r} (respectively, uptime, computation, and reputation).

• F(t) is a scaling factor that starts at 1.0 upon initial license activation and gradually increases over time, reaching a value of 2.0 after 18 months.
   

The overall Tilling Score S combines these ratios multiplicatively as​

S = Rᵤ ​× R꜀ ​× Rᵣ ,

with the following provisos:
 

• For Node Factory Licenses (Level 10) and Network Node Licenses (Levels 9–2), reaching a Tilling Score of 2.0 allows an unlock event to be explicitly triggered. Each triggered unlock produces exactly two Network Node Licenses at the next lower level. Further increases in the Tilling Score beyond 2.0 at a given license do not trigger additional unlock events; however, the parent licenses continue to accumulate their performance ratios, increasing their Tilling Scores without an upper bound;
   

• Newly produced Network Node Licenses always begin with an initial Tilling Score of 1.0 upon unlocking, and subsequently accumulate their own Tilling Scores based on their individual operational performance.
   

This structured approach, where the Tilling Score determines eligibility to unlock new licenses, and hence produce new nodes, incentivizes sustained high-quality operations, aligning economic rewards directly with continuous, verifiable node performance.

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Table 4.2: Tilling Score Calculation