⚙️Node System

DAO Governance Incentive Mechanism

To further encourage community-led growth, BitEngine introduces an upgraded Node Progression and DAO Governance Incentive Mechanism. This model is designed to reward users for their active participation, team-building efforts, and staking contributions — all while reinforcing decentralized governance and sustainable community development.

Node Levels & Organic Upgrades

Every new user joins the system as an M1 Node and is automatically placed within the platform’s global node structure. Node advancement follows a bottom-up, organic expansion model:

• When sufficient direct or indirect contributions are made through team-building, the node is automatically promoted to the next level (e.g., M1 → M2 → M3, and so on);

• No additional investment is required for upgrades — progress is determined solely by community engagement and staking activity;

• Higher-level nodes enjoy increased incentive potential and expanded governance participation within the DAO structure.

DAO Governance Contribution Incentives

As a decentralized ecosystem, BitEngine rewards users not only for growing the network but also for contributing meaningfully to its governance. The DAO Governance Contribution Incentive is built upon the following principles:

• Incentive Source: A portion of platform revenue is algorithmically distributed to nodes based on their effective contribution and team activity;

• Distributed Allocation Logic: Through a layered, decentralized structure, rewards are algorithmically assigned according to each node’s position, contribution level, and team dynamics;

• Governance Weight: Incentives scale with node level — higher-ranking nodes gradually unlock greater influence over community proposals, DAO decisions, and ecosystem development;

• Fairness & Transparency: All calculations and reward distributions are executed via smart contracts, ensuring full transparency and tamper-proof integrity.

This incentive framework is designed not simply to drive short-term growth, but to align economic incentives with the long-term vision of decentralized governance and community autonomy.

Node Levels & Rights Overview (Partial)

Node Level	Sample Qualification Criteria	Key Benefits & Incentives
M1	Registration, base eligibility	Basic participation
M2	2 qualified direct referrals	Access to base-level incentives
M3	≥ 4 qualified referrals	Increased incentive share
M4–M8	Staking contributions + team size	Greater DAO voting rights, deeper incentive layers

Note: Higher-level nodes gain access to broader layers of community-based revenue sharing and play a more active role in governance.

Scarcity & Structural Balance Mechanism

To maintain structural fairness and long-term sustainability, BitEngine has implemented mechanisms to manage node upgrades and governance balance:

• “Frozen Tier Progression”: Nodes aiming to advance to the top level (e.g. M7 → M8) may be required to meet additional growth conditions (e.g. expanded team size) or await structural vacancies;

• Governance Cap Management: Role distribution and participation are strategically limited to prevent centralization of power, preserving the spirit of distributed governance.