# Shardeum Node distribution

**Published by:** [Utsavs](https://paragraph.com/@utsavs/)
**Published on:** 2022-03-15
**URL:** https://paragraph.com/@utsavs/shardeum-node-distribution

## Content

Shardeum has 3 types of nodes :Validator nodesArchive nodesStandby nodesEach 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 runnersMiners would change to different types of system based on the advantages being providedDisadvantages :Very high distribution to Archive nodesNode rewards aren’t fixed, dependent on the number of nodes in the system, lower the betterWorkaround: 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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