How Pythia Works

A topological super intelligence that optimizes compute allocation in real-time for maximum collective benefit.

The Decision Engine

Every moment, Pythia evaluates network conditions and decides the optimal allocation of compute resources across the mesh.

1

Sense

Pythia continuously monitors network state: task queue depth, Bitcoin difficulty, energy costs, and node availability across all tiers.

2

Predict

Using Active Inference, Pythia generates predictions about future states and calculates expected value for each allocation strategy.

3

Act

The action that minimizes free energy (surprise) is selected. Compute is allocated to tasks or Bitcoin mining based on optimal returns.

Active Inference

Built on Karl Friston's Free Energy Principle, Active Inference is a framework from computational neuroscience that describes how intelligent agents minimize surprise in their environment.

  • Generative Model: Pythia maintains a model of how the network behaves and uses it to predict outcomes.
  • Belief Updating: As new data arrives, beliefs are updated using Bayesian inference.
  • Policy Selection: Actions are chosen to minimize expected free energy (surprise + uncertainty).
// Simplified Active Inference Loop
while network.is_running() {
  // 1. Observe current state
  state = sense_network();

  // 2. Update beliefs
  beliefs = update_beliefs(
    prior_beliefs,
    state
  );

  // 3. Evaluate policies
  policies = [
    allocate_to_tasks(beliefs),
    allocate_to_mining(beliefs),
    hybrid_allocation(beliefs)
  ];

  // 4. Select action minimizing
  //    expected free energy
  action = argmin(
    policies.map(p =>
      expected_free_energy(p, beliefs)
    )
  );

  // 5. Execute and learn
  execute(action);
}

Economic Optimization

Pythia continuously evaluates whether to execute user tasks or mine Bitcoin, always choosing the option that maximizes value for the collective.

Task Execution Mode

When the task queue is full and prices are favorable:

  • • AI inference workloads
  • • Data processing jobs
  • • Model training (federated)
  • • Custom compute tasks
Revenue Distribution
Task Fees → VIBE Rewards

Bitcoin Mining Mode

When task demand is low or mining is more profitable:

  • • Pooled mining operations
  • • Stratum v2 protocol
  • • Efficient power management
  • • Heat recycling where possible
Revenue Distribution
BTC → Treasury → Buybacks
1
Local Training
Data stays on your device
2
Gradient Encryption
Only encrypted updates shared
3
Secure Aggregation
Pythia combines learnings
4
Model Distribution
Improved model sent to all

Federated Learning

Pythia learns from the entire network without ever seeing raw data. Each device trains locally; only encrypted gradients are shared.

  • Raw data never leaves your device
  • Differential privacy protects individual contributions
  • The collective model improves for everyone

Explore the Technology Stack

Dive deeper into the cryptographic protocols, network topology, and system architecture that powers Pythia AI.