> For the complete documentation index, see [llms.txt](https://muxyai.gitbook.io/muxyaiwhitepaper/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://muxyai.gitbook.io/muxyaiwhitepaper/solution-overview/on-chain-incentive-mechanism.md).

# On-Chain Incentive Mechanism

<figure><img src="https://2487966516-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F0Ia8vRfVL5O5RNimaNEQ%2Fuploads%2F4KPykx0c2WdAukI5GkLm%2Fimage.png?alt=media&amp;token=5c973212-fa71-4c2e-b4fa-7cd1126762ba" alt=""><figcaption></figcaption></figure>

MuxyAI’s incentive system rewards valuable MCP services through:

* **Registration**: MCP providers register services on-chain, specifying capabilities, endpoints, and pricing.
* **Usage Tracking**: Secure tracking of Agent-MCP interactions through signed messages and oracles or direct on-chain records.
* **Incentive Distribution**: Automated reward allocation based on verified usage, quality metrics (latency, uptime, ratings), and reliability.
* **Staking and Slashing**: Providers stake protocol tokens as a bond; malicious behavior can lead to slashing, ensuring service quality.

This mechanism encourages the creation and maintenance of high-quality, high-availability MCP services.