Network Expansion Mechanism (Opt In)

Abstract
Over the last 20 years we have see demand for compute resources outpace supply by approximately 3:1 ratio. With the now present and rapid expansion of AI, estimates for this ratio over the next 5-10 years have increased to a 5:1 ratio. As adoption for Venice grows, it is foreseeable that we will hit this same bottleneck irrespective of the incentives currently built into the system regarding supply inflation, VCU usage, and staking APR. To reduce this bottleneck, it would be favorable to begin expanding the VCU network capacity sooner than later.

Proposal
- Allow Venice stakers to contribute their staking rewards towards expansion of the Network Capacity.
- Make this an Opt-in/Opt-out feature
- Have options for partial/full allocation of staking rewards to be contributed for Network infrastructure expansion.

Rational

As the network capacity expands, we also have a relative increase in the intrinsic value of each token — that is, how much a person has staked as a percentage (%) of the staking pool, corresponds with the percentage (%) of the total network capacity for inference service. With this in mind, by allowing stakers to opt-in and contribute to expanding the infrastructure, this provides the means to increase the intrinsic value of the token as opposed to increasing individual rewards.

As a supplementary measure to the existing incentives built into the system (which essentially uses ‘on-demand’ approach to expansion of network), this enables the community to contribute and give back with a more “in preparation” approach to increasing network capacity.

Conclusion
The demand for compute power and inference is increasing rapidly in demand and trending as such. Efforts towards meeting demand ‘on-request’ are most likely to create bottlenecks, and this is foreseeable. In addition to ‘on-demand’ efforts to provide for compute supply, we should take a more proactive approach and prepare what is inevitably on the horizon ahead.
By giving stakers the option to redirect their own rewards to this cause, we simultaneously increase intrinsic value of the Venice token, whilst inviting community to further participate directly in the growth of the network within an altruistic manner.

Thank you for you time and consideration, I welcome your feedback and thoughts.