Provider Settlement

Important Clarification on Settlement Flow:

Provider settlement is a two-step process:

1. Step 1 - Settlement: When deployment closes or settles, provider receives ACT (not AKT directly)
2. Step 2 - Provider Burn: Provider calls akash tx bme burn-act to convert ACT → AKT

The burn is provider-initiated, not automatic at settlement time. This allows providers to:

• Accumulate ACT and burn in batches
• Time their conversions strategically
• Potentially hold ACT if desired

Note: Provider software will eventually automate the burn-act transaction, but currently it must be done manually.

Provider Burn Command:

akash tx bme burn-act <amount>uact --from <provider-wallet> -y

After Provider Burns ACT:

• Provider’s ACT balance decreases
• Provider receives AKT (from vault’s remint_credits if sufficient, or newly minted)
• vault-state.total_burned.uact increases
• vault-state.remint_credits decreases (non-inflationary) or total_minted.uakt increases (inflationary)

Test 3.1: Verify Provider Receives ACT at Settlement

Objective: Confirm providers receive ACT (not AKT) when deployment settles/closes

Preconditions:

• Active deployment with provider
• Provider has known ACT/AKT balance

User Actions:

1. Record provider’s balances before close:

   akash query bank balances <provider-address>

2. Close deployment (or wait for settlement)
3. Record provider’s balances after:

   akash query bank balances <provider-address>

Expected Results:

• Provider ACT balance increases (receives ACT for compute)
• Provider AKT may increase slightly (bid deposit return)
• BME vault-state unchanged at this step (no burn yet)

Test 3.2: Provider Burns ACT to Receive AKT (Non-Inflationary)

Objective: Verify provider can convert ACT to AKT using burn-act, paid from remint credits

Preconditions:

• Provider has ACT balance (from settlement)
• Vault has sufficient remint_credits

User Actions:

1. Record pre-burn state:

   # Provider balances
   akash query bank balances <provider-address>
   
   # BME vault state
   akash query bme vault-state

2. Provider burns ACT:

   akash tx bme burn-act <amount>uact --from <provider-wallet> -y

3. Wait for epoch (~1 minute)

4. Record post-burn state:

   akash query bank balances <provider-address>
   akash query bme vault-state

Expected Results:

• Provider ACT balance decreased by burn amount
• Provider AKT balance increased (ACT amount / oracle price)
• vault-state.total_burned.uact increased
• vault-state.remint_credits decreased
• vault-state.total_minted.uakt unchanged (non-inflationary)

Test 3.3: Provider Burns ACT When AKT Price Rose

Objective: Verify provider receives fewer AKT when price increased (same USD value)

User Actions:

1. Record provider’s initial AKT balance
2. Record RemintCredits and TotalMinted
3. Record oracle price: P_start = $1.00
4. Create deployment, let it run for known compute cost (e.g., $100 USD worth)
5. [Testnet Admin] Adjust oracle price to P_settle = $1.25
6. Wait for settlement epoch
7. Query provider’s AKT balance and BME state

Expected Results:

• Compute cost: $100 USD
• At $1.25: Provider receives 100 / 1.25 = 80 AKT
• RemintCredits decreased by 80 AKT
• TotalMinted unchanged
• Provider received correct USD value in AKT terms

Test 3.4: Provider Payment When AKT Price Dropped (Inflationary Path)

Objective: Verify settlement mints new AKT when remint credits insufficient

User Actions:

1. Record:
   • Provider’s initial AKT balance
   • RemintCredits (note the amount)
   • TotalMinted
   • Total AKT supply
2. Record oracle price: P_start = $1.00
3. Create deployment with deposit that results in known remint credits
4. Let it run for compute cost exceeding remint credits at dropped price
5. [Testnet Admin] Adjust oracle price to P_settle = $0.50
6. Wait for settlement epoch
7. Query all metrics

Expected Results:

• Provider should receive full AKT amount owed
• RemintCredits depleted (reduced to 0 or near 0)
• TotalMinted increased by shortfall amount
• Total AKT supply increased

Critical Verification:

• This confirms the inflationary path works correctly
• Compare total supply before/after

Test 3.5: Multiple Settlements - Remint Credit Depletion Over Time

Objective: Verify system behavior as remint credits deplete across multiple settlements

User Actions:

1. Create deployment with 1000 AKT deposit (1000 remint credits)
2. [Testnet Admin] Drop price so settlements require more AKT than accrued
3. Let multiple settlement epochs occur
4. Track RemintCredits and TotalMinted after each epoch

Expected Results:

• First settlements use remint credits only
• Eventually remint credits deplete
• Later settlements require new minting
• Clear transition visible in metrics