Mana will be a crucial component of the IOTA 2.0 network. It serves as a glue that ties everything together. Here are a few resources to reference if you’d like to learn more about mana and its role in the upcoming IOTA 2.0 network:
BUILD.5 intends on leveraging this unique commodity to make it more useful, accessible, and profitable to interact with. One of the key features of mana that hasn’t been publicized is that it may be used as the “gas” that will power the execution of smart contracts (SCs) directly on the Tangle. So, while this and other attributes may change as we travel through the development process with the IOTA Foundation and the rest of the ecosystem, our goal continues to be to push the boundaries of innovation to bring this technology to market.
Through our research and development process it is very clear that generating and sharing mana will be a rather complicated process. Abstracting away this complexity is essential if we want to have a flourishing ecosystem of applications executing business logic on Tangle. To solve for this, BUILD.5 is proud to share more information on the operational models being designed to drive our Mana Station module.
Mana Station at its core is a marketplace where SC creators and users can buy or sell mana, for their smart contract execution needs. Nodes with sufficient mana can offer their resources to give access to the Tangle and power smart contracts in exchange for compensation.
It acts as a key link between BUILD.5 components and is a separate module used to operate SCs and business logic internally. It allows for the generation of mana through node management and rewards node operators with fees collected.
The design of the Mana Station should foster a thriving ecosystem where node operators are incentivized to contribute mana, and smart contracts and applications have access to sufficient mana resources to function effectively. By creating a well-balanced and dynamic marketplace, the Mana Station will play a pivotal role in supporting the growth and adoption of IOTA 2.0’s smart contract capabilities.
The BUILD.5 platform will be the largest issuer of transactions on IOTA 2.0, so it’s imperative that we have a system available that can be called on for 24/7 access to input and execute information on the Tangle.
As a leading adopter and implementer of IOTA 2.0 SCs, BUILD.5 will cause an immediate demand for mana. Over time this demand will grow as more creators connect into the IOTA world and require execution bandwidth.
While initially designed for internal consumption to power BUILD.5’s SCs and business logic, the Mana Station’s decentralized nature allows it to be extended for external utilization by other applications and developers.
General node operators will finally be able to generate revenue by supplying mana to the Mana Station and can charge fees in different currencies (USDT, IOTA, BUILD). This will ensure a constant supply of mana ready to be deployed.
Developers can create applications, set up a node with the BUILD.5 console, and make that node the default node for their application. This enables them to immediately start earning revenue from user transactions. The constant demand from consumers using their application ensures a continuous flow of fees.
The Mana Station’s rules, fee structures, and other parameters will be governed through community-driven consensus mechanisms like BUILD token voting to ensure transparency and fairness. Decentralizing the decision making process of this critical infrastructure will ensure continued support and adoption.
Simply having public nodes is not sufficient; the ecosystem requires a balance between supply and demand. The Mana Station facilitates a balanced economy between mana suppliers (node managers generating mana) and mana consumers (SCs and applications). It acts as a trustless intermediary that charges fees for the services provided, and a portion of these fees is distributed back to the node operators.
The BUILD.5 team is actively working with enterprises to create demand for mana while also focusing on increasing the supply through this novel module. You can’t have one without the other.
Over time, variations in costs will occur, necessitating the management of mana supply. Spikes in demand and low supply could be addressed by increasing fees to avoid running out of mana (an application never wants downtime). The Mana Station module will implement a fee system that allows for control and management of fees. A key thing to note here is that since IOTA is feeless, the BUILD.5 community will have full control over the fee structure and pricing strategy.
The Mana Station helps balance the supply and demand of mana and plays a critical role in the broader ecosystem of IOTA 2.0. The ecosystem requires this symmetry between consumers and contributors. It’s essential to have a distribution system like the Mana Station in place to ensure a well-functioning market to access the Tangle and have the ability to execute logic on it.
A “Billing Station” may be enabled to power (charge fee) existing centralized partner functions prior to L1 SC activation. There would be no supply side nodes in this instance, but just as SOON created a veritable treasure trove of information that gave birth to the BUILD.5 code base, this would allow a similar level of information gathering in relation to demand in the market.
Overall, the Mana Station will serve as the backbone of the IOTA 2.0 network, providing a mechanism for balancing supply and demand of mana while powering SCs and applications across the ecosystem. It enables both BUILD.5 and node operators to generate revenue and ensures a continuous flow of fees to sustain the network’s functionality and growth.