Title: Reward Function Design for Incentivizing Convergence in Decentralized Knowledge Graphs

Abstract

We propose a reward mechanism for decentralized systems built on the Collective Focus Theorem (CFT), where agents submit microblocks to a DAG representing partial computations toward a converging focus vector ( \pi ). The reward mechanism ensures that agents are fairly incentivized for submitting verified, convergence-aligned work. Our design combines multiple convergence indicators into a hybrid reward function, balancing simplicity, robustness, game resistance, and long-term epistemic value.

1. Introduction

The Collective Focus Theorem proves that token-weighted random walks in authenticated, directed graphs converge to a unique stationary distribution ( \pi ). To compute this distribution in a distributed fashion, agents (“neurons”) submit microblocks containing partial focus updates. However, to encourage meaningful participation and prevent manipulation, we need a verifiable and fair reward system.

This paper defines and compares several candidate reward functions and proposes a hybrid approach optimized for long-term convergence and resistance to manipulation.

2. Design Goals

The reward function must:

  • Incentivize accurate computation toward ( \pi )
  • Be locally verifiable
  • Prevent reward extraction via oscillation or noise
  • Reward both short-term and long-term contributions
  • Scale with network size

3. Microblock Data Model

Each microblock includes:

  • Parent block references
  • Subgraph slice and cyberlinks
  • Token state ( t_j )
  • Input and output focus values: ( \pi^{(t)}, \pi^{(t+1)} )
  • Proof hash and signature

4. Candidate Reward Functions

4.1 ( \Delta\pi ) Norm-Based Reward

[ R_1 = \alpha \cdot \sum_j |\pi_j^{(t+1)} - \pi_j^t| ]

Pros: Simple, easy to verify
Cons: Gameable by oscillation

4.2 Entropy Reduction Reward

[ R_2 = \beta \cdot (H(\pi^t) - H(\pi^{t+1})) ]

Where entropy is ( H(\pi) = -\sum_j \pi_j \log \pi_j )

Pros: Rewards semantic sharpening
Cons: Computationally heavier

4.3 Cosine Similarity to Target

[ R_3 = \gamma \cdot \text{cos}(\pi^{(t+1)}, \pi^*) ]

Pros: Alignment with oracle( \pi^* )
Cons: Requires trusted reference; hard for local compute

4.4 Spectral Gap Improvement

[ R_4 = \delta \cdot (\lambda_2^t - \lambda_2^{t+1}) ]

Where ( \lambda_2 ) is the second eigenvalue of the transition matrix

Pros: Measures global convergence speedup
Cons: Expensive and non-local

4.5 Predictive Alignment Reward

[ R_5 = \epsilon \cdot \text{align}(\pi_j^{(t+1)}, \pi_j^{T}) ]

Pros: Favors early correct contributions
Cons: Requires delayed validation

5. Composite Hybrid Model

We propose the following hybrid reward function:

[ \text{Reward} = \alpha \cdot \Delta\pi + \beta \cdot \Delta H + \gamma \cdot \text{DAGWeight} + \epsilon \cdot \text{AlignmentBonus} ]

Where:

  • ( \Delta\pi ): total L1 delta in focus vector
  • ( \Delta H ): entropy drop
  • DAGWeight: number of descendant blocks referencing this one
  • AlignmentBonus: comparison with future ( \pi^T ) (optional, delayed)

6. Implementation Strategy

  • Fast local rewards use ( \Delta\pi ) and ( \Delta H )
  • Checkpoints add alignment and spectral verification bonuses
  • Validators sample and verify blocks probabilistically

7. Conclusion

This hybrid function aligns incentives with convergence, penalizes noise, rewards foresight, and supports scaling. It anchors computation in provable improvements to ( \pi ), the collective intelligence substrate.

Future work includes benchmarking reward trajectories and testing robustness against coordinated spam and adversarial updates.