FAQ: K-Value Adjustment
What are K-values?
The K-value is a critical metric that determines the value of a specific GPU specification within the Aethir network. It directly influences the distribution of rewards and the staking thresholds required for various GPU models.
Why are we updating them now?
This is the first major update since launch, driven by:
Changes in market GPU pricing
Better aligning staking and rewards with GPU value, demand, and availability
Preparation for upcoming feature rollouts and broader hardware support
Who is affected by this change?
Only new GPUs are subject to the updated staking amount, but reward changes apply to all GPUs.
How does the new reward structure incentivize higher performance?
If you maintain high uptime and utilization, your relative rewards likely increase
If you provide consistent service, you benefit from the rebalancing
Total reward pools are growing with network usage, so the pie is getting bigger while distribution becomes more merit-based
Some lower-tier GPUs may receive slightly adjusted rewards (a detailed breakdown is shared in the official documentation)
Do I need to do anything?
No. The changes are applied automatically:
No manual claim or staking adjustment is needed
Your dashboard will reflect updated staking requirements for adding new nodes
Where can I see the new K-values?
You can view the updated K-values and reward calculations here: https://docs.aethir.com/aethir-cloud/aethir-cloud-host/operational-requirements-for-cloud-hosts/staking-as-cloud-host/staking-parameters
How often will K-values be updated going forward?
We plan to review K-values periodically based on market conditions, network performance, and ecosystem feedback — no timeline for future K-value changes is currently set.
I just staked recently — will my rewards be recalculated?
Yes. Rewards will be affected for both new and existing GPUs.
What if I unstake and restake the same GPU?
Unstaking and restaking after the update will trigger the new K-value for staking. If you want to retain your current terms, it’s best to leave existing nodes staked.
How were the new K-values and rewards calculated?
They are based on a combination of:
GPU market prices
Supply/demand dynamics in the network
Performance benchmarks across workloads
How does this help the network?
It ensures:
Long-term sustainability of rewards
Fair treatment across Cloud Host sizes and GPU specifications
A more balanced and stable network as new GPU specifications join
How does adjusting K-values drive AI customer demand?
Simple economics:
Adjusted K-values → Lower staking requirements
Lower staking requirements → More GPU supply
More GPU supply → Happier AI and Gaming clients
Happier clients → Maximum utilization for Cloud Hosts
Maximum utilization → Higher rewards
Why does capturing AI demand matter for Cloud Hosts?
Because demand drives utilization, and utilization drives rewards:
Network with the most AI clients = highest GPU utilization
Highest utilization = maximum revenue per GPU
It's better to be on THE platform than A platform
Network effects mean winners takes most
How does this make Aethir #1 for GPU-as-a-Service?
By solving both sides of the market:
For AI builders: Best prices, instant availability, unlimited scale
For Cloud Hosts: Maximum utilization, consistent demand, best returns
When both sides prefer Aethir, we become the default AI infrastructure network
Does this mean Aethir isn't making money?
The opposite. We're adjusting K-values because:
Network demand is strong and growing
We can optimize for utilization with lower barriers to entry
The market opportunity justifies further expansion
We're confident in sustained demand growth - Companies in trouble raise barriers; successful companies lower them to scale
What about providers who staked at higher K-values?
Existing stake is unaffected. You maintain:
Your current staking terms
Your position in the network
Any locked rewards or vesting schedules
How does this affect different GPU types?
Each GPU specification sees proportional K-value adjustment, but the impact varies:
Lower-end GPUs: Become more accessible for Cloud Hosts to contribute
Higher-end GPUs: Maintain premium position, with lower entry barriers
The relative value hierarchy remains, but absolute staking requirements drop
Why not just increase rewards instead of lowering K-values?
K-values do more than set reward levels—they determine:
Network accessibility and growth potential
How rewards are distributed across different GPU specifications
The balance between stake and performance
Market positioning versus competitors - Simply increasing rewards doesn't achieve these strategic objectives
How confident are you about AI demand growth?
Extremely confident based on market signals:
Every tech company is pivoting to AI
GPU shortages are getting worse, not better
AI model sizes are growing exponentially
Inference workloads exploding
No signs of slowing down - the question isn't if demand will grow, but how fast
Will major clouds just lower their prices to compete?
They can't match our economics:
They have massive fixed costs and overhead
Shareholders demand high margins
The centralized model can't scale efficiently
They're supply-constrained - we can sustain prices they can't touch
Is this a one-time change?
K-values will be reviewed periodically as the network evolves, but changes will be:
Infrequent and data-driven
Announced transparently
Based on network performance metrics
Designed to maintain stability while enabling growth
What if this attracts low-quality providers?
Our quality controls remain unchanged:
Performance requirements: Still stringent
KYC requirements: Still mandatory
Slashing mechanisms: Still active
Monitoring systems: Still enforcing standards
Why should AI builders trust Aethir?
Because we solve their biggest pain points:
No more begging for GPU allocations
No more runway-killing prices
No more capacity constraints
Just GPUs when and where they need them, at prices that work
How quickly will we see increased demand?
The progression will be rapid:
Immediate: New Cloud Hosts and additional GPUs onboarding
Weeks: Capacity expansion visible to the market
Months: AI builders migrating to Aethir
Quarters: Utilization rates climbing significantly
Years: Aethir recognized as the GPU compute leader
Bottom line: Should I be concerned?
Only if you're not providing quality service. This change:
Rewards active, reliable Cloud Hosts
Positions Aethir to capture massive AI demand
Accelerates network growth and utilization
Benefits everyone positioned for the AI boom
The Reality: K-values were conservative protective measures. Now that we've proven the model works and AI demand is exploding, we're optimizing for growth. This is what winning looks like.
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