Best Practices

Operational guidelines for running a successful GPU provider operation on Silicon Network.

Hardware Management

Vendor Data Synchronization

Sync vendor data daily via Hardware > Settings

• Monitor sync status every morning
• Address sync failures within 6 hours
• Rotate API keys quarterly for security

Why it matters: Stale data leads to inaccurate earnings reporting and owner complaints.

Performance Monitoring

Investigate any GPU showing no earnings for an unexpected amount of time

24-hour checklist:

• Verify GPU still deployed on vendor platform
• Check NFT pairing intact
• Confirm server activation status
• Review vendor platform alerts

48-hour checklist:

• Contact vendor support
• Check hardware status
• Review rental demand for GPU type

72+ hours:

• Communicate with affected owner
• Document issue and resolution

NFT Operations

Minting Strategy

Mint unpaired NFTs for pre-sales only

• Avoid creating excess unpaired inventory
• Track expected hardware delivery dates
• Communicate delivery timelines to buyers
• Have pairing plan before minting

Why it matters: Unpaired NFTs don't generate earnings, leading to buyer dissatisfaction.

Pairing Timeliness

Pair NFTs within 24 hours of provisioning and rental on a vendor platform

• Prepare pairing details in advance
• Batch pair when possible for efficiency
• Verify successful pairing immediately
• Confirm earnings begin tracking

Impact: Every day unpaired = lost revenue for owners and reputation risk for you.

Financial Management

Wallet Balance Maintenance

Maintain wallet balance of at least 1.5x upcoming 30-day payouts

Monitoring schedule:

• Daily: Check balance vs upcoming payouts
• Weekly: Top up if below threshold
• Monthly: Review buffer adequacy

Why 1.5x?

• Accounts for payout growth between top-ups
• Provides buffer for urgent payments
• Maintains payment reliability reputation

Payment Schedules

Pay owners on consistent schedule (weekly/monthly)

Weekly payments:

• Pros: Predictable cash flow, happier owners
• Cons: More admin time
• Best for: Smaller operations (<100 GPUs)

Bi-weekly payments:

• Pros: Balance of frequency and efficiency
• Cons: Requires clear communication
• Best for: Mid-size operations (100-500 GPUs)

Monthly payments:

• Pros: Lowest transaction costs, simplified accounting
• Cons: Longer wait for owners, requires larger balance
• Best for: Large operations (500+ GPUs)

Record Keeping

Export transaction data monthly for records

Monthly export checklist:

• All transactions (Financials > All transactions)
• Monthly statement (Settings > Statements)
• GPU performance data
• Payout records
• Owner communications

Storage requirements:

• Keep 7+ years for tax purposes
• Store in multiple locations (cloud + local)
• Organize by month and year
• Document any anomalies or disputes

Security

Authentication

Enable 2FA in Settings > Security

• Use authenticator app
• Store backup codes securely
• Test recovery process
• Require for all admin users

API Key Management

Rotate API keys quarterly (Settings > Access)

Rotation schedule:

• Q1: January 15
• Q2: April 15
• Q3: July 15
• Q4: October 15

Rotation process:

1. Generate new API key
2. Test new key in staging (if available)
3. Update production systems
4. Verify functionality
5. Delete old key
6. Document change

Operational Excellence

Documentation

Maintain comprehensive documentation:

System documentation:

• Vendor integration details
• Server inventory and locations
• Network architecture
• Disaster recovery procedures

Process documentation:

• Onboarding new GPUs workflow
• Payment processing procedures
• Owner communication templates
• Incident response playbook

Historical documentation:

• Performance trends and analysis
• Issues and resolutions
• Owner feedback and complaints
• System changes and upgrades

Communication

With owners:

• Establish clear communication channels
• Respond to inquiries within 24 hours
• Provide proactive updates on issues
• Share performance reports regularly

With vendors:

• Maintain direct support contacts
• Document all technical issues
• Track SLA compliance
• Review performance quarterly

Internal:

• Daily stand-ups for operational team
• Weekly performance reviews
• Monthly business reviews
• Quarterly strategic planning

Capacity Planning

Growth planning:

• Monitor utilization trends
• Plan hardware procurement 90 days ahead
• Coordinate with vendors on availability
• Pre-sell unpaired NFTs cautiously

Resource allocation:

• Balance owner demand across vendors
• Diversify hardware types
• Plan for hardware lifecycle
• Budget for replacements and upgrades

Compliance and Legal

Regulatory Awareness

Understand commodity ownership positioning:

• Avoid investment language (ROI, yield, returns)
• Focus on infrastructure ownership
• Emphasize active participation required
• Include appropriate disclaimers

Disclaimer requirements:

• "Past performance is not indicative of future results"
• "This offering is not a security or investment product"
• "GPU ownership and earnings subject to market conditions"

Tax Considerations

Maintain records for tax reporting:

• Gross revenue (earnings before owner payouts)
• Owner payouts (potential 1099 obligations)
• Operating expenses (infrastructure)
• Capital equipment (GPU purchases)

Continuous Improvement

Performance Review Cadence

Weekly:

• Review operational metrics
• Address immediate issues
• Update short-term priorities

Monthly:

• Analyze financial performance
• Review owner satisfaction
• Plan next month's capacity

Quarterly:

• Strategic business review
• Vendor relationship assessment
• Technology stack evaluation
• Team performance and training

Annually:

• Comprehensive business analysis
• Multi-year strategic planning
• Major system upgrades
• Budget and resource allocation

Metrics That Matter

Track these KPIs consistently:

Operational:

• GPU utilization rate targets
• Average earnings per GPU
• Vendor uptime and reliability
• Time to pair newly provisioned hardware

Financial:

• Gross revenue growth
• Net margin after payouts
• Payment processing costs
• Working capital efficiency

Customer:

• Owner retention rate
• Average owner GPU count
• Support ticket resolution time
• Owner satisfaction score

Resources

Internal Tools

• Monitoring Guide - Comprehensive tracking
• Payment Guide - Process payments correctly
• Troubleshooting - Resolve common issues

External Resources

• Base network status and documentation
• Vendor platform status pages
• GPU performance benchmarks
• Industry news and trends