v1.4 21/06/2024

$100 Million Decentralized Cloud Initiative 2024 RFP 4

1. The initiative 4

2. About Openmesh 4

3. Openmesh token details 5

   1. The distribution 5

   2. Purpose 5

   3. TGE details 5

4. Disclaimer 5

5. Motivation and Intention 5

   1. Motivation 5

   2. Intention 6

6. Innovation and Industry Impact 6

   1. What is an Xnode? 6

   2. Why is Xnode a Big Deal? 7

7. Xnode Distribution Schedule, Campaigns, and Targets 8

   1. Goals 8

   2. Campaigns and Targets 8

8. Outcomes and Ecosystem Development Goals and KPIs 9

   1. Goals 9

   2. KPIs 9

9. Use Cases, Innovation, and Enabling 9

10. Users & Archetypes of Xnode 10

    1. Individual Users 10

    2. Small Businesses 11

    3. Web3 Protocols and DAOs 11

    4. Large Enterprises 11

    5. Academia 12

11. The Bigger Picture 12

12. Decentralized Cloud Initiative Participation 12

    1. Important dates 13

    2. Important information 13

    3. List of smart contracts 14

    4. Basic Steps 14

    5. Why Participate? 15

13. Bare Metal Providers 16

    1. Equinix 16

    2. Vultr 16

    3. Hivelocity 16

14. Finance, Funds Distribution 17

15. Liabilities and Responsibility 17

16. Transparency & Accountability 17

17. FAQs 18

18. Glossary of Terms 27

19. Relevant Links 27

$100 Million Decentralized Cloud Initiative 2024 RFP

Openmesh launches its ambitious decentralized cloud initiative with the announcement of Xnode One in Paris on June 13th. Xnode One is a decentralized virtual machine capable of building and managing various web2 and web3 applications. In 2023, over 60% of all web3 infrastructure is hosted by private cloud providers. The web3 industry is meant to be decentralized, but today that is not the case. We are here to change that.

For the next 15 days, Openmesh will work with selected Decentralized Cloud Initiative supporters to raise $6.4 million to pay for bare metal server bills, generating an equivalent of US$100 million in public cloud resources to support and accelerate the Web3 ecosystem in 2024. With this initiative, Openmesh will distribute approximately 33,000 Xnodes to the community for free. Major distribution will begin at Proof of Talk, followed by Istanbul blockchain week, Eth Toronto, and Token 2049.

1. The initiative

The Decentralized Cloud Initiative 2024 aims to transform data and IT infrastructure by distributing $100 million worth of public cloud equivalence over the next 12 months. This initiative supports Web3 and Web2 by providing Xnodes deployed on high-performance decentralized virtual machines (DVMs) linked to Non Fungible Tokens (NFTs) - without KYC requirements. Through community funding and partnerships with bare metal providers, Openmesh will create and distribute these decentralized virtual machines, empowering developers and organizations globally, and laying the foundation for decentralized cloud.

Our main goal of this initiative is to accelerate the Web3 space by democratizing access to decentralized cloud infrastructure, reducing costs, and enabling secure, scalable, and efficient data services for developers and organizations worldwide. Through the Decentralized Cloud Initiative 2024, we aim to empower the Web3 community with the tools and resources needed to drive innovation and foster growth in a decentralized digital ecosystem.

2. About Openmesh

Openmesh Network is a four-year-running open-source Decentralized Physical Infrastructure (DePIN) project, with the majority of our 26 team members based in Sydney. Our team brings diverse experience from prominent Web3 projects, including Fantom, Ripple, Ethereum, Cosmos, AWS, and Aragon, as well as traditional technology providers and financial services companies.

Openmesh is a P2P immutable data and decentralized cloud network. It combines the best features of AWS, IPFS, Chainlink, BitTorrent, and Oracle Cloud into a single solution. Openmesh provides immutable data via OpenAPIs and offers Web2 & Web3 Infrastructure as a service through Xnode.

Xnode and Openmesh advancements, breakthroughs, and innovations are designed to accelerate the Web3 industry by building the next generation of open data and infrastructure, which will be pivotal for the next 10-20 years.

3. Openmesh token details

3.1.  The distribution

3.2. Purpose

3.3. TGE details

4. Disclaimer

This proposal is for informational purposes only. Participation in the Decentralized Cloud Initiative 2024 involves inherent risks, and all participants should perform their due diligence and understand the associated risks. Openmesh is not responsible for any financial loss or adverse outcomes resulting from participation.

This proposal is provided for informational purposes only and does not constitute an offer or solicitation for investment or financial advice. Participation in the Decentralized Cloud Initiative (DCI) 2024 as a Participant involves significant risks. Participants should perform their own due diligence and fully understand the associated risks before committing any resources. This initiative is strictly a sponsorship and not an investment.

Key Risks:

• Financial Risk: There is no guarantee of returns, and sponsors may experience a total loss of their contribution.

• Regulatory Risk: The legal status of decentralized projects is uncertain and may vary by jurisdiction. Sponsors are responsible for ensuring compliance with all applicable laws and regulations.

• Technical Risk: The initiative involves complex technologies that may encounter unforeseen issues, leading to potential operational failures.

Nature of Participation: This initiative is a sponsorship to support the development of decentralized cloud infrastructure and the Web3 ecosystem. It is not an investment. By sponsoring the DCI 2024, you are contributing to a community-driven effort to democratize access to decentralized cloud resources and support innovation in the Web3 space.

Sponsorship Details:

• Personal Capacity: You are acting in a personal capacity and not as part of a registered entity. The DAO and its members, including Openmesh, are not registered entities and operate without formal legal recognition.

• No Guarantees: Openmesh and the DAO make no representations, warranties, or guarantees regarding the performance or future value of the sOPEN tokens or any related assets.

• Own Due Diligence: It is your responsibility to conduct thorough due diligence and seek independent advice if necessary. You should fully understand the risks involved before participating.

• Liability: Openmesh and the DAO are not responsible for any financial loss, adverse outcomes, or legal implications arising from your participation. All sponsorship activities are undertaken at your own risk.

Indemnification: By participating in this initiative, you agree to indemnify, defend, and hold harmless the DAO, its members, and Openmesh from any claims, losses, damages, liabilities, penalties, actions, proceedings, judgments, or any other costs arising out of or related to your participation in the initiative. This includes, but is not limited to, any actions taken by end users of the virtual machines.

End-User Responsibility: The end user, who receives the virtual machines from the DAO for testing purposes, is solely responsible for any actions taken using the virtual machines. As a sponsor, you shall not be liable for any misuse, illegal activities, or violations of terms by the end user. All participants must adhere to the terms of this agreement and applicable laws.

5. Motivation and Intention

5.1. Motivation

90% of the world's data and IT infrastructure is controlled by 4-5 corporations & we are supposed to trust them. The centralization of data and IT infrastructure, in particular cloud technologies by a few corporations poses significant challenges, including:

• Centralized control acting as a chokepoint for decentralization.

• Information asymmetry, leading to social inequality and scandals.
  
  

5.2. Intention

The Decentralized Cloud Initiative 2024 seeks to:

• From a democratic point of view, deciding what is best for society should be shared by everyone, not just a single company or a few people. Big corporations often act like they have this right, but that should not be the case.

• Have an affordable, better choice compared to a go-to provider like AWS.

• Democratize access to high-performance computing resources. Allowing Decentralized Autonomous Organizations (DAOs) and Smart Contracts to run servers.

• Enable developers to build decentralized data clouds efficiently and cost-effectively.

• Foster innovation by removing barriers imposed by centralized entities.

• Promote privacy and security by decentralizing data control.

• Support the growth of the Openmesh ecosystem and the neighboring Web3 and Web2 communities.
  
  5.2. Intention

The Decentralized Cloud Initiative 2024 aims to achieve the following:

1. Promote Democratic Decision-Making: Ensure that decisions about what is best for society are made collectively by everyone, not just by a single company or a select few. Large corporations often act as if they have this right, but this initiative challenges that notion.

2. Provide an Affordable Alternative: Offer a cost-effective and superior option compared to major providers like AWS, making high-performance computing resources accessible to a broader audience.

3. Democratize Access to Computing Resources: Allow Decentralized Autonomous Organizations (DAOs) and Smart Contracts to run servers, enabling more equitable access to these resources.

4. Enable Efficient Decentralized Cloud Development: Empower developers to build decentralized data clouds efficiently and cost-effectively, reducing reliance on centralized entities.

5. Foster Innovation: Remove barriers imposed by centralized entities, encouraging innovation and creativity within the ecosystem.

6. Promote Privacy and Security: Enhance privacy and security by decentralizing data control, ensuring users have more control over their information.

7. Support Ecosystem Growth: Strengthen the Openmesh ecosystem and its neighboring Web3 and Web2 communities, driving overall growth and development.

6. Innovation and Industry Impact

Openmesh's cutting-edge open-source cloud infrastructure and global open data network aim to store and share critical global data without intermediaries. Our flagship product, Xnode, enables developers to create decentralized data clouds quickly and cost-effectively. The initiative's impact includes significant cost reductions, increased deployment speed, and enhanced data security and accessibility.

6.1. What is an Xnode?

• An Xnode is an ‘anything’ node. Xnode is a single tenanted or self-hosted machine. Xnode is the term for the whole machine, regardless whether you’re using a personal computer, bare metal deployment, VPS,  or hosted on a public cloud. 

• On this machine, the operator deploys services of their choice, whether that’s data analytics software, website hosting, blockchain nodes, computer game servers, a combination of all the above or something entirely different…the possibilities are endless. It’s the operator’s choice based on their requirements. An Xnode’s resource specifications are chosen by the deployer, therefore they vary. 

• The Xnode One has a fixed specification in terms of CPU, RAM and storage. Also included is two weeks of GPU capabilities. Please refer to the later section of this document for full specification details. 

6.2. Why is Xnode a Big Deal?

• Today, the world doesn’t truly have Web3, it’s deployed on primarily centralized infrastructure. That’s an Achilles heel, which is a problem. 

• Xnode leverages the reliability of established cloud services, physical infrastructure, and data centers to accelerate the growth and development of the decentralized network ecosystem and Web3 in general.

• By integrating these known and proven technologies, Openmesh ensures a stable and secure foundation for building and deploying decentralized applications and services. 

• Openmesh takes these technologies to the next level by introducing a new kind of peer-to-peer (P2P) open cloud infrastructure that encompasses compute, storage, and GPU resources. This innovative approach allows for a more decentralized, flexible, and efficient utilization of these existing cloud resources, breaking away from traditional centralized models.

• What is this new model? Xnode builds a foundation of decentralized infrastructure, ensuring that no single authority can alter the data, its services, or the network. This architecture inherently resists censorship, promoting democracy, equality, and accessibility for all, regardless of location or background.

• The first use of this infrastructure is to provide free data and services. Xnodes work together to provide a fully democratic data layer, offering free historical and real-time immutable data to anyone, anywhere, at any time. 

• More so, Xnodes bridge the gap between the Web2 and Web3 worlds by creating a composable and interoperable network. This network is designed to seamlessly integrate different technologies, platforms, and services, enabling a smooth transition and interaction between the traditional internet and the decentralized web. For example, using Xnode Studio you can build an Xnode which runs an Ethereum RPC node (Web3), consumes Web2 data collected by the network, then pushes that combined data into Snowflake to run enterprise-grade analytics (Web2). Results can be transported elsewhere via an API. 

• Xnodes bring these innovations in big data and analytics to the decentralized world, and in return bring real benefits you can touch and use from the decentralized world. By leveraging the power of mesh networks’ datamesh philosophy, Openmesh is transforming how data is analyzed, stored, and utilized, paving the way for more secure, transparent, and efficient data ecosystems.

• Xnodes also address node operator viability and sustainability which is a critical issue in decentralized networks. No distributed network is truly distributed if it relies on a limited number of independent node operators or is hosted in centralized data centers. The costs associated with running nodes, such as electricity, internet, and hardware maintenance, can sometimes outweigh the rewards, especially in a bear market. This breakthrough focuses on creating a balance between the costs and rewards of operating a node, making it economically viable for a wider range of individuals and organizations to participate in the network.

• To increase economic viability for node operators further, in a future Xnode implementation Xnode operators will be able to contribute spare resources to a P2P storage and compute marketplace and request payment from resource consumers. This forms a resource pool - the Openmesh Cloud. 

7. Xnode Distribution Schedule, Campaigns, and Targets

7.1. Goals:

• Fund $6 million worth of bare metal to generate $100 million worth of equivalent decentralized cloud credit via Xnodes for 2024.

• Distribute Xnodes at major events and competitions, including:

  • Proof of Talk (June 10-11)

  • EthGlobal Brussels (July 12-14)

  • Token2049 (September 18-19)

  • SmartCon (October 30-31)

  • ODI Hack NYC 2024 (November 2024)

  • Openmesh Startup Competition (Ongoing)

  • Xnode Competition (Ongoing)

7.2. Campaigns and Targets:

• Launch the Decentralized Cloud Initiative 2024 RFP on OpenR&D.

• Share the RFP with community members and other potential supporters.

• Ensure timely distribution and activation of Xnode for NFT claimers.

8. Outcomes and Ecosystem Development Goals and KPIs

8.1. Goals:

• Establish a robust decentralized cloud ecosystem.

• Support Web3 and Web2 developers with high-performance computing resources.

• Achieve widespread adoption of Xnodes and Openmesh infrastructure.

8.2. KPIs:

• Number of Xnodes distributed and activated.

• Number of applications and solutions built using Xnodes.

• Community growth and participation.

• Developer engagement and feedback to refine Xnode performance and Xnode Studio UI/UX.

• Number of conversions from initiative Xnode recipients to Early Validator Pass sales

9. Use Cases, Innovation, and Enabling

Xnodes enables developers to build decentralized data clouds, connect globally, share data securely, and automate cloud setups. Use cases include:

• Node Hosting: Xnodes can host blockchain nodes, supporting various blockchain networks and facilitating decentralized validation and consensus mechanisms.

• Decentralized applications (dApps) development.

• Decentralized Social Networks: Xnodes can power social networking platforms, enabling decentralized communication and content sharing without centralized control.

• Collaboration Tools: Tools for project management, document sharing, and team collaboration can be hosted on Xnodes, ensuring secure and decentralized access.

• Data analytics and visualization for Web3 and Web2 data individually or combined.

• Decentralized AI and Machine Learning Model Training

• Direct Data Access: Pull free immutable data directly from the Openmesh Network to your Xnode, bypassing conventional internet routes.

• Cost-Free Data Transfer: Access this data without incurring additional internet service provider fees, making it an economical choice for data-intensive operations.

• Game Hosting: Xnodes can host online games, offering decentralized servers for multiplayer games, increasing security and reducing central points of failure. Own your virtual world.

• Secure data sharing and collaboration.

• Model Training and Inference: Xnodes can be used to train and deploy machine learning models, leveraging decentralized compute power for AI applications.

• Data Processing Pipelines: AI and ML workflows can be executed on Xnodes, enabling efficient data processing and analysis in a decentralized manner.

• Website Hosting: Xnodes can host websites, offering decentralized and resilient infrastructure for web applications, reducing the risk of downtime and censorship.

• Decentralized Data Lakes: Xnodes can be used to create and manage decentralized data lakes, allowing for the secure storage and retrieval of large datasets across a distributed network.

• Data Analytics: With integrated analytics engines like Pythia (powered by Openmesh), users can analyze large volumes of data stored on Xnodes, extracting actionable insights and powering data-driven decision-making.

• Backup and Disaster Recovery: Xnodes provide a decentralized solution for backing up critical data and ensuring business continuity in the event of data loss or centralized system failures.

See full apps: https://www.openmesh.network/xnode/template-products

10. Users & Archetypes of Xnode

10.1 Individual Users

• Developers (Devs): Building and testing applications, particularly in decentralized and Web3 environments.

• Tech Enthusiasts and Hobbyists: Exploring decentralized technologies and peer-to-peer networks.

• Freelancers and Independent Developers: Developing personal or freelance projects needing scalable resources.

• Data Scientists: Handling large-scale data processing, analytics, and modeling for various applications.

• Home Stakers, Node Operators, Self-Custodians and Blockchain Enthusiasts: Engaging in proof of stake and other blockchain node operations such as running your own RPC.

• Quantitative Analysts (Quants): Conducting complex data analysis, financial modeling, and algorithm development.

• Traders: Engaging in financial markets, requiring real-time data analysis and secure transaction platforms.

• Financial Engineers: Developing financial models and strategies, often involving complex data and algorithms.

• Entrepreneurs: Innovating and creating new businesses, particularly in tech and digital sectors.

10.2. Small Businesses

• Startups: Seeking cost-effective, scalable infrastructure for growth.

• Small Tech Companies: Needing robust infrastructure for software development and app hosting.

• Web3 Companies: Developing and managing blockchain, cryptocurrency, and decentralized applications.

• Hedge Funds: Engaging in financial trading and investments, requiring secure and efficient data processing capabilities.

• Quantitative Trading Firms (Quant Firms): Specializing in algorithmic trading and requiring robust computational infrastructure.

10.3. Web3 Protocols and DAOs

• Blockchain and Cryptocurrency Platforms: Developing and managing decentralized applications and currencies.

• Decentralized Autonomous Organizations (DAOs): Operating with decentralized governance and decision-making processes.

• NFT and Digital Asset Platforms: Managing and distributing non-fungible tokens and digital assets.

• Decentralized Finance (DeFi) Platforms: Offering financial services on blockchain networks.

• Web3 Developers and Innovators: Creating new applications and services in the Web3 space.

10.4. Large Enterprises

• Large Financial Institutions: Utilizing decentralized infrastructure for secure transactions, blockchain applications, and extensive data processing.

• Major Healthcare Providers and Hospitals: Managing patient data, telemedicine services, and large-scale healthcare operations on a decentralized network.

• Large Retailers and E-commerce Platforms: Handling extensive online retail operations, requiring scalable infrastructure.

• Regulatory Bodies and Large Law Firms: Overseeing compliance, legal aspects of technology use, and extensive data management.

10.5. Academia

• Research Institutions: Conducting advanced research, particularly in data-intensive fields.

• Academic Libraries and Archives: Using decentralized storage for preserving academic materials.

11. The Bigger Picture

The Decentralized Cloud Initiative 2024 aligns with Openmesh's vision to democratize data access and eliminate information asymmetry. Our main vision is to accelerate the Web3 space by liberating access to decentralized cloud infrastructure, reducing costs, and enabling secure, scalable, and efficient data services for developers and organizations worldwide. By providing decentralized cloud infrastructure, we empower individuals and organizations to innovate without reliance on centralized entities.

Through the Decentralized Cloud Initiative 2024, we aim to empower the Web3 community with the tools and resources needed to drive innovation and foster growth in a decentralized digital ecosystem. This initiative not only reduces the barriers to entry for developing decentralized applications but also ensures that the infrastructure supporting these applications is accessible, affordable, and resilient.

As a supporter of this initiative, you are part of the movement to question and disrupt the status quo. Acting as pioneers, your contribution builds the foundation of a new resilient network for humans and agents to interact at scale for decades to come. 

12. Decentralized Cloud Initiative Participation

Contribution Tiers: Participate by paying bare metal server bills in tiers of $50,000, $100,000, or $500,000 to support the creation of Xnodes.

Purpose: These payments will facilitate the establishment of Xnodes, which Openmesh will distribute for free over the next 12 months at major Web3 events worldwide.

Direct Payments: All payments are to be made in stable coins (USDT, USDC, DAI, or ETH) directly to the bare metal providers, such as Equinix, Vultr, and Hivelocity. Openmesh does not handle these transactions.

Incentives for Participants: As a token of appreciation, upon successful transaction, OpenmeshDAO will allocate sOPEN tokens to each participant. These tokens can be claimed over a 12-month period with a 12-month vesting schedule.

Token Generation Event (TGE): Participants will be able to swap sOPEN tokens for OPEN tokens at a 1:1 ratio during the Token Generation Event (TGE) on July 7, 2024.

Transparency: Openmesh is not involved in the transaction process. Participants will directly interact with the bare metal providers for all financial transactions.

Allocation of sOPEN Tokens: The sOPEN tokens will be allocated once the payment to the bare metal provider is confirmed.

KYC Requirements: Participants will need to complete the KYC process with the bare metal provider to facilitate the transaction.

Server Setup: The bare metal servers funded through this initiative will be used to deploy Xnodes, enhancing the decentralized cloud infrastructure.

Major Web3 Events: Xnodes will be distributed at significant Web3 events such as Proof of Talk, EthGlobal Brussels, Token2049, SmartCon, ODI Hack NYC 2024, and ongoing competitions like the Openmesh Startup Competition and Xnode Competition.

Participant Responsibilities: Ensure timely and accurate payment of the selected badge amount and completion of the KYC process with the bare metal provider.

Liability: Participants are not liable for any illegal activities conducted by end users of the VPS services. Hivelocity and other providers handle all legal issues related to service misuse.

Commitment to Decentralization: By participating, you are supporting the decentralization of cloud infrastructure and contributing to the growth and development of the Web3 ecosystem.

12.3. List of smart contracts

Audits… 

12.4. Basic Steps:

• Make sure the DCI main page is www.abc.com

• Select available ticket size and whitelist yourself. 

• You must use the Ethereum network to whitelist and can only send following ERC20 assets (USDT, USDC, DAI and ETH) to the bare metal provider.

• You only can send the amount you have whitelisted. 

• You will be required to use the same wallet where you will receive sOPEN tokens.

• Contact the appropriate bare metal provider based on your ticket to complete your KYC. The bare metal provider will provide you with an invoice, a wallet address and a point of contact to clarify any questions you have.

• Once you have completed the KYC, wait for 24-48 hours to reflect on your record with the whitelisting process.

• Connect your wallet to see if your KYC was successful. You can connect your wallet and you will see if your KYC is successful.

• Wait for the period where you can send your assets to the bare metal provider. You will see a timer on the website.

• When the timer is indicated for you to send assets, try sending a smaller amount and confirm with the bare metal provider to ensure everything is working fine.

• Complete your complete transaction. Your transaction confirmation will be displayed www.abc.com

• Wait up to 24 hours to complete your DCI participation

• Once the DCI participation is completed, you can go to www.get tokens page, connect your wallet and mint sOPEN for 12 months. Any sOPEN you get you can swap in to OPEN in 1:1 ratio through OPEN Swap smart contract.

12.5. Why Participate?

• Support Decentralization: Contribute to the democratization of cloud infrastructure, reducing dependency on centralized cloud providers.

• Empower Innovation: Provide developers and organizations with access to high-performance decentralized virtual machines (Xnodes), fostering innovation and growth in the Web3 ecosystem.

• Cost Reduction: Benefit from significant cost savings compared to traditional cloud services, making high-performance computing resources more affordable and accessible.

• Secure and Scalable: Ensure secure, scalable, and efficient data services, which are critical for both Web2 and Web3 applications.

• Historical Movement: Be part of a groundbreaking initiative that accelerates the adoption of Web3 technologies, marking a significant step towards a decentralized digital future.

• Community Engagement: Join a global community of like-minded individuals and organizations dedicated to promoting decentralization and open-source technologies.

• Transparency and Accountability: Participate in an initiative committed to maintaining high levels of transparency and accountability, with clear documentation and regular updates.

• No Direct Payments to Openmesh: Funds go directly to bare metal providers, ensuring a straightforward and transparent financial flow without intermediary involvement.

• Risk Mitigation: Benefit from indemnity against liabilities arising from end users' misuse of services, with Hivelocity managing any legal issues related to unlawful activities.

• Technological Advancement: Support the development and deployment of cutting-edge decentralized cloud infrastructure, paving the way for the future of the internet.

• Collaborative Environment: Contribute to a collaborative environment where resources and knowledge are shared to drive collective progress in the Web3 space.

• Proliferation of dApps: Enable the creation and deployment of more decentralized applications (dApps) in the Web3 space, enhancing the ecosystem with innovative solutions.

• Enhanced Privacy and Security: Participate in an initiative that prioritizes privacy and security by decentralizing data control, reducing the risk of data breaches and unauthorized access.

• Future-proof Infrastructure: Invest in infrastructure designed to support the next generation of Web3 applications and services, ensuring long-term viability and sustainability.

• Support for DAOs and Smart Contracts: Empower Decentralized Autonomous Organizations (DAOs) and smart contracts to operate servers and manage data, enhancing their functionality and reach.

13. Bare metal providers

13.1. Equinix

Founded in 1998, Equinix is a global leader in digital infrastructure, with over 20 years of experience in the industry. The company operates in more than 200 data centers across 52 markets worldwide, providing a reliable and expansive network. Equinix employs over 10,000 professionals and is renowned for its robust and secure interconnection solutions, making it a trusted partner for businesses aiming to scale and secure their digital infrastructure.

13.2. Vultr

Vultr, established in 2014, has rapidly grown to become a key player in cloud infrastructure. With a presence in 25 locations worldwide, Vultr offers a wide range of cloud services to meet diverse business needs. The company employs a dedicated team of professionals committed to providing high-performance cloud computing and reliable services. Vultr’s reputation for speed, simplicity, and performance has made it a preferred choice for developers and businesses globally.

13.3. Hivelocity

Founded in 2002, Hivelocity has over two decades of experience in providing dedicated server and cloud hosting solutions. The company operates data centers in 10 locations across North America and Europe, serving a global customer base. Hivelocity’s team of more than 100 employees is dedicated to delivering high-quality, scalable hosting solutions. Known for their exceptional customer service and reliable infrastructure, Hivelocity has built a strong reputation in the hosting industry.

14. Finance, Funds Distribution

All funds contributed by DCI participants are directed exclusively to bare metal providers. This means that participants are essentially paying the invoices issued by these providers directly, ensuring transparency and accountability. Importantly, no stable coins or other payments are made to OpenmeshDAO or the Openmesh team at any point during this process. By handling funds in this manner, we maintain a clear and straightforward financial flow, ensuring that every dollar contributed goes towards securing the necessary infrastructure to support the decentralized cloud initiative.

15. Liabilities and Responsibility

As a participant in the Decentralized Cloud Initiative (DCI), you are obligated to pay for the bare metal servers by settling the invoices issued directly by the providers. Additionally, you must provide your KYC-compliant account information to Openmesh, which will facilitate the distribution of Virtual Private Servers (VPS) from each bare metal server to end users at no cost. It is critical to note that as a DCI participant, you are not liable for any unlawful activities conducted by end users of these VPS.

Pursuant to Hivelocity's Terms of Service and Privacy Policy, any misuse or illegal activities undertaken by end users fall outside the scope of liability for the DCI participant. Hivelocity's terms explicitly state that customers are accountable for their own use of the services, and any breach of legal statutes or violation of Hivelocity's Acceptable Use Policy by end users will be managed by Hivelocity. DCI participants, serving merely as intermediaries by providing their KYC-compliant accounts, are indemnified against such liabilities.

16. Transparency & Accountability

Openmesh hereby commits to maintaining rigorous transparency and accountability throughout the Decentralized Cloud Initiative (DCI) 2024. Each procedural step, from fundraising to the distribution and deployment of Xnodes, will be conducted with full disclosure to safeguard the interests of all stakeholders.

To uphold transparency, Openmesh will:

1. Ensure clear and detailed documentation of all financial transactions, allowing participants to verify the allocation of funds directly to the bare metal providers.

2. Provide regular updates to the community and participants on the initiative's progress, including the number of Xnodes distributed, the performance metrics of the decentralized cloud infrastructure, and any encountered challenges.

3. Grant access to the Service Level Agreements (SLAs) and Privacy Policies of the bare metal providers, such as Hivelocity, thereby ensuring participants are fully informed of the terms and conditions governing the use of the services.

Participants are hereby advised that engagement in this initiative entails inherent risks. Openmesh recommends that all participants thoroughly review the privacy policies and risk disclaimers issued by both Openmesh and the bare metal providers. While Openmesh will endeavor to mitigate risks and execute operations in good faith, participants should be cognizant of the potential risks associated with contributing to a decentralized cloud infrastructure project.

17. FAQs

What is the Decentralized Cloud Initiative (DCI)?

• Answer: The DCI is an initiative by Openmesh to decentralize cloud infrastructure by deploying Xnodes, which are distributed for free to support Web3 applications. Participants contribute by paying for bare metal server bills.

How do I participate in the DCI?

• Answer: You can participate by paying for bare metal server bills in denominations of $50,000, $100,000, or $500,000. Payments are made in stable coins directly to the bare metal providers.

What are Xnodes?

• Answer: Xnodes are decentralized virtual machines capable of running various Web2 and Web3 applications. They are created and maintained using the infrastructure funded by the DCI.

 Who are the bare metal providers involved in this initiative?

• Answer: The providers include Equinix, Vultr, and Hivelocity, all of which are reputable companies with extensive experience in providing cloud infrastructure services.

 How are payments made?

• Answer: Payments are made in stable coins (USDT, USDC, DAI, or ETH) directly to the bare metal providers. Openmesh does not handle any payments.

What incentives do participants receive?

• Answer: Participants receive sOPEN tokens as an incentive. These tokens can be claimed over a 12-month period with a 12-month vesting schedule and can be swapped for OPEN tokens during the Token Generation Event (TGE) on July 7, 2024.

What is the purpose of sOPEN tokens?

• Answer: sOPEN tokens serve as a reward for participants. They can be swapped for OPEN tokens at a 1:1 ratio during the TGE.

When is the Token Generation Event (TGE)?

• Answer: The TGE is scheduled for July 7, 2024. During this event, sOPEN tokens can be swapped for OPEN tokens.

Do I need to complete KYC?

• Answer: Yes, participants need to complete the KYC process with the bare metal provider to facilitate the transaction.

What happens if end users misuse the VPS services?

• Answer: Participants are not liable for any illegal activities conducted by end users of the VPS services. Hivelocity and other providers handle all legal issues related to service misuse.

How will Xnodes be distributed?

• Answer: Xnodes will be distributed for free at major Web3 events such as Proof of Talk, EthGlobal Brussels, Token2049, SmartCon, ODI Hack NYC 2024, and ongoing competitions like the Openmesh Startup Competition and Xnode Competition.

How does this initiative support Web3?

• Answer: By providing decentralized cloud infrastructure, the initiative reduces dependency on centralized providers, lowers costs, and fosters innovation in the Web3 ecosystem.

What are the benefits of using Xnodes?

• Answer: Xnodes offer secure, scalable, and efficient data services, enabling developers and organizations to run decentralized applications and services more effectively.

Is there a deadline to participate?

• Answer: Participants can join the initiative at any time, but early participation is encouraged to maximize the benefits and incentives offered.

What is the total funding goal of the DCI?

• Answer: The DCI aims to raise $6.4 million to pay for bare metal server bills, generating an equivalent of $100 million in public cloud resources.

 How will my contribution be used?

• Answer: Your contribution will be used to fund the bare metal servers necessary to create Xnodes. These Xnodes will then be distributed to support the decentralized cloud infrastructure.

What kind of applications can run on Xnodes?

• Answer: Xnodes can run a wide range of applications, including blockchain nodes, decentralized applications (dApps), data analytics, machine learning models, website hosting, and more.

How does this initiative benefit the broader Web3 community?

• Answer: The initiative democratizes access to high-performance computing resources, supports innovation, and helps build a more resilient and decentralized internet infrastructure.

What is the role of Openmesh in this initiative?

• Answer: Openmesh facilitates the creation and distribution of Xnodes but does not handle any financial transactions. They also provide the sOPEN token incentives to participants.

How can I get more information or support?

• Answer: For more information or support, you can visit the Openmesh website or contact their support team through the provided contact channels. Regular updates and detailed documentation will also be available to participants.

What is the Decentralized Cloud Initiative 2024?

• Answer: : A program to distribute US $100 million of public cloud equivalence over the next 12 months to support Web3 and Web2 developers.

How does the Decentralized Cloud Initiative 2024 work?

• Answer: RFP Participants (Initiative supporters) fund bare metal servers and donate these machine’s resources to Openmesh DAO. Openmesh DAO distributes the resources in the form of Xnodes deployed on Virtual Machines - Decentralized Virtual Machines (DVMs). DVM operators receive high-performance Xnodes which have their ownership attached to NFTs. Operators can use the Xnodes for building whatever they choose with decentralized data cloud services.

What are Xnodes?

• Answer: Xnodes are high-performance virtual machines with specific technical specifications. Their ownership is tied to a Non Fungible Token(NFT) and is provided without KYC requirements.

What are the technical specifications of an Xnode?

• Answer: Each Xnode has 8 vCPU, 16 GB RAM, 320+ GB SSD, and 1/10th of a NVIDIA A100 GPU for 2 weeks.

How is an Xnode attached to an NFT?

• Answer: Each Xnode is linked to a unique ERC-721 NFT on the Ethereum mainnet blockchain, ensuring ownership and enabling tracking within the Web3 ecosystem. These NFTs are transferable however the DVM will deactivate 12 months after the activation of the first owner.

What is the purpose of the Decentralized Cloud Initiative 2024?

• Answer: To democratize access to cloud computing resources, reduce costs, and promote decentralized data control.

Who can participate in the initiative?

• Answer: Developers, organizations, and individuals interested in decentralized cloud services and supporting the Openmesh ecosystem.

What is the ticket size for participation?

• Answer: Ticket sizes range from $5,000 to $50,000, with each ticket corresponding to a specific allocation of Xnodes.

How are funds allocated in the initiative?

• Answer: Funds are sent directly by participants to bare metal providers to purchase and provision servers, which are then configured into Xnodes by the Openmesh DAO.

What is the role of bare metal providers?

• Answer: They supply and provision the physical servers that are used to create Xnodes.

How do Operators claim their Xnodes?

• Answer: Operators receive a physical card with activation details. They follow the instructions on the card to connect their Web3 wallet and mint an NFT. Then they assign the NFT to an XNode to activate it.

What events will feature the distribution of Xnodes?

• Answer: Major events such as, but not limited to: Proof of Talk, EthGlobal Brussels, Token2049, and SmartCon.

What is the benefit of using Xnodes over traditional cloud services?

• Answer: Xnodes offer significant cost reductions, faster deployment, and decentralized data control without the need for KYC.

What happens if a bare metal provider goes bankrupt?

• Answer: Risk mitigation strategies and insurance mechanisms will be in place to protect participants' investments and ensure continuity.

How does the staking process work for Xnode NFTs?

• Answer: Xnode Operators can stake their Xnode NFTs to earn sOPEN tokens, which are vested over 12 months and can be converted to OPEN tokens in the future.

What is sOPEN?

• Answer: sOPEN is a token awarded to early beta testers, which can be swapped to OPEN tokens after the Token Generation Event (TGE).

When is the TGE for OPEN tokens?

• Answer: The TGE for OPEN tokens is scheduled for the end of June 2024.

What support is available for participants?

• Answer: Openmesh technical contributors will monitor hardware to best provide uptime of Xnodes.Technical support is available from Openmesh contributors to assist initiative participants with any issues or questions during and after onboarding.

How can developers use Xnodes?

• Answer Developers can use Xnodes for various applications, including dApp development, data analytics, and secure data sharing.

What is Xnode Studio?

• Answer: A skyscanner for infrastructure, and an app store with over 1000 templates and apps for easy customization and deployment of appropriate network and data infrastructure based on individual use cases for each Xnode.

How does the Xnode activation process work?

• Answer: Persons follow instructions on the provided physical card to link their Xnode to their Web3 wallet and activate it, becoming an Xnode Operator.

What is the governance model for Openmesh?

• Answer: Openmesh is an open-source project governed by a community of contributors, without a central authority. It is a Decentralized Autonomous Organization (DAO).

What is GenesisNet?

• Answer: GenesisNet is Openmesh's foundational network enabling decentralized data connectivity.

How does Openmesh ensure data privacy and security?

• Answer: By decentralizing data control and utilizing robust encryption and security protocols.

What kind of applications can be built using Xnodes?

• Answer: Applications range from decentralized finance (DeFi) platforms to data analytics tools, social networks, and more.

Can Xnodes be traded or rented?

• Answer: Yes, since Xnodes’ access are attached to NFTs, they can be traded or rented within the Web3 ecosystem.

What is the expected cost reduction using Xnodes?

• Answer: Xnodes facilitate a 10-15 fold cost reduction in running and operating data clouds.

How does Openmesh contribute to reducing information asymmetry?

• Answer: By providing open access to a reliable source of immutable data, enabling transparency and fairness.

What are the benefits of decentralizing data clouds?

• Answer: Decentralization reduces reliance on centralized entities which enhances privacy and promotes innovation without censorship.

How are Xnodes beneficial for startups?

• Answer: Startups can leverage Xnodes for cost-effective, scalable, and secure cloud infrastructure, accelerating their development processes.

What kind of support do bare metal providers offer?

• Answer: Bare metal providers offer provisioning, maintenance, uptime guarantees, and technical support.

How does Openmesh handle scalability?

• Answer: Openmesh's decentralized mesh architecture ensures scalable and resilient cloud services.

What is the importance of open-source governance for Openmesh?

• Answer: Open-source governance ensures transparency, community involvement, and prevents control by any single individual, or single entity, or single power.

Can enterprises benefit from using Xnodes?

• Answer: Yes, enterprises can use Xnodes for scalable, secure, and cost-effective cloud solutions.

What is the role of NFTs in the Decentralized Cloud Initiative?

• Answer: NFTs ensure unique identification and ownership of Xnodes, enabling tracking and peer-to-peer transfer (no middleman) within the Web3 ecosystem.

How does Openmesh support the Web3 ecosystem?

• Answer: By providing infrastructure and tools for decentralized applications, fostering innovation and growth.

What is the significance of the Decentralized Cloud Initiative 2024 for the industry?

• Answer: It represents a major shift towards decentralized, community-driven cloud infrastructure, challenging traditional centralized models.

How can Xnode Operators ensure they receive their Xnodes?

• Answer: By following the activation instructions provided on their physical cards, linking their Xnodes to Web3 wallets under their control

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What are the environmental impacts of using Xnodes?

• Answer: Decentralized cloud solutions can optimize resource usage and potentially reduce the environmental footprint compared to traditional data centers.

 What kind of legal disclaimers should participants be aware of?

• Answer: Participants should review disclaimers regarding risk, responsibility, and the legal obligations of bare metal providers and Openmesh.

How does the Decentralized Cloud Initiative 2024 align with Openmesh's ethos?

• Answer: It aligns with the ethos of community-driven, open-source, and decentralized infrastructure development.

What is the long-term vision for Openmesh?

• Answer: To become the internet's open data fabric, enabling universal access to reliable data, cloud compute and storage infrastructure, and fostering innovation.

How does Openmesh handle data sovereignty?

• Answer: By decentralizing data control, Openmesh ensures data sovereignty and prevents interference from external entities.

Can educational institutions benefit from using Xnodes?

• Answer: Yes, educational institutions can use Xnodes for research, data analysis, and developing educational tools.

What measures are in place to ensure the reliability of Xnodes?

• Answer: Ongoing monitoring, support, and technical assistance ensure the reliability and optimal performance of Xnodes. Openmesh technical contributors will monitor hardware to best provide uptime of Xnodes. Technical support is available from Openmesh contributors to assist initiative participants with any issues or questions during and after onboarding. Xnode operators will be suggested to interact with the Openmesh community for questions or support as it is an open source community driven project. Openmesh technical contributors or other core contributors will not support Xnode operators directly.

How does Openmesh plan to handle the high demand for Xnodes?

• Answer: By scaling infrastructure and leveraging community funding to meet demand.

What is the community's role in the Decentralized Cloud Initiative 2024?

• Answer: The community funds, supports, and helps govern the initiative, ensuring it remains decentralized and community-driven.

How can participants provide feedback or ask questions about the initiative?

• Answer: Participants can join Openmesh's community forums, attend informational sessions, and contact support for any queries.

What is the timeline for the Decentralized Cloud Initiative 2024?

• Answer: The initiative runs throughout 2024, with major events and distributions scheduled throughout the year.

18.  Glossary of Terms

• Xnode: High-performance virtual machine performing storage and compute attached to an NFT.

• Openmesh Core - Openmesh Core is a small Go program that runs on this machine. It’s the program that keeps an Xnode in the Openmesh network. This network is the globally-spanning collection of Xnodes all of which are connected in a mesh topology and communicate with each other.

• Xnode Studio - A Skyscanner for infrastructure, and app store for services. Making Xnode deployment easy.

• XnodeOS - The operating system for Xnodes. It is downstream from the open source operating system named NixOS. Using a Nix-derived OS makes Xnodes highly configurable and reproducible. 

• Openmesh Cloud - Xnodes share storage and compute resources into a Peer-to-Peer (P2P) matching engine, forming a resource pool for decentralized cloud.

• sOPEN: ERC-20 token distributed to participants, convertible to OPEN.

• OPEN: The Openmesh DAO governance token (ERC-20).

• Bare Metal Provider: Companies providing physical servers for decentralized cloud infrastructure.

• Participant - A person participating in this initiative who is purchasing and sponsoringdonating server resources to the Openmesh DAO.

• Xnode Operator - A person with current ownership of an activated Xnode NFT linked to an running Xnode. 

• OpenR&D - This is an Openmesh DAO governed platform for people to find tasks to contribute to the development of the Openmesh technology or wider ecosystem. Contributors are rewarded for their work. It is a decentralized platform similar to Upwork, however with no middleman to take a fee.

• Openmesh Network

• Openmesh DAO