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Shardeum has 3 types of nodes :
Validator nodes
Archive nodes
Standby nodes
Each of these are necessary to the health of the system and have to be incentivized to run the nodes. The incentive structure for each of them :
Constant Node Distribution :
Divide the incentives in such a way that number of nodes remain in a 50:30:20 ratio for Validator : Archive : Standby
Things to consider : Validator and Standby nodes would have similar cost of running but Archive nodes would require much heavier hardware & computing thus it would be more expensive. We are assuming an archive node costs 3x validator node.
Total Rewards >= # of Nodes x Cost per node
Validator : Rv = Cv x Nv = C x 0.5x (50%) = 0.5Cx
Archive : Ra = Ca x Na = 3C x 0.3x (Cost of running 3x validator) = 0.9Cx
Standby : Rs = Cs x Ns = C x 0.2x = 0.2Cx
Rv : Ra :Rs = 0.5 : 0.9 : 0.2 = 32:56:12
So,
Validator nodes : 50% nodes in system - 32% Rewards - ~6M SHM*
Archive nodes : 30% nodes in system - 56% Rewards - ~10M SHM
Standby nodes : 20% nodes in system - 12% Rewards - ~2M SHM
Benefits :
Provide fixed incentives to the node runners
Miners would change to different types of system based on the advantages being provided
Disadvantages :
Very high distribution to Archive nodes
Node rewards aren’t fixed, dependent on the number of nodes in the system, lower the better
Workaround: Few 100 archive nodes would be enough to maintain security of the system, they do not need to scale with the total number of nodes, have a hardcap on the token distributed to archive nodes (<5m $)
Calculation Reference:
Shardeum Total Supply : 508 M
Available Supply : 250 M
Staked Supply (80%) : 200 M
*Inflation Rewards (9%) : 18M token per year
Dollar Rewards (500 Mn FDV) : 18 Mn
Shardeum has 3 types of nodes :
Validator nodes
Archive nodes
Standby nodes
Each of these are necessary to the health of the system and have to be incentivized to run the nodes. The incentive structure for each of them :
Constant Node Distribution :
Divide the incentives in such a way that number of nodes remain in a 50:30:20 ratio for Validator : Archive : Standby
Things to consider : Validator and Standby nodes would have similar cost of running but Archive nodes would require much heavier hardware & computing thus it would be more expensive. We are assuming an archive node costs 3x validator node.
Total Rewards >= # of Nodes x Cost per node
Validator : Rv = Cv x Nv = C x 0.5x (50%) = 0.5Cx
Archive : Ra = Ca x Na = 3C x 0.3x (Cost of running 3x validator) = 0.9Cx
Standby : Rs = Cs x Ns = C x 0.2x = 0.2Cx
Rv : Ra :Rs = 0.5 : 0.9 : 0.2 = 32:56:12
So,
Validator nodes : 50% nodes in system - 32% Rewards - ~6M SHM*
Archive nodes : 30% nodes in system - 56% Rewards - ~10M SHM
Standby nodes : 20% nodes in system - 12% Rewards - ~2M SHM
Benefits :
Provide fixed incentives to the node runners
Miners would change to different types of system based on the advantages being provided
Disadvantages :
Very high distribution to Archive nodes
Node rewards aren’t fixed, dependent on the number of nodes in the system, lower the better
Workaround: Few 100 archive nodes would be enough to maintain security of the system, they do not need to scale with the total number of nodes, have a hardcap on the token distributed to archive nodes (<5m $)
Calculation Reference:
Shardeum Total Supply : 508 M
Available Supply : 250 M
Staked Supply (80%) : 200 M
*Inflation Rewards (9%) : 18M token per year
Dollar Rewards (500 Mn FDV) : 18 Mn
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