EarthNode Rewards - Part 1

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EarthNode Rewards – Part 1 - Inflation Rewards.

There are two types of network incentives available for EarthNode operators and delegators.

  1. Inflation Rewards - 29 percent of the total amount of WMT is set aside for inflation rewards, which will be split between those who run nodes and those who stake. Over time, inflation will go down, which will mean that rewards will be higher at the beginning of the network, and the system will reach zero inflation in 20 years. This creates a balance between risk and return for node operators throughout the network’s maturation stages.

  2. Transaction Fees - The transaction fees will be paid in WMT to node operators, who may then split the fees with people who have staked WMTs on their nodes. The total rewards for node operators will be the same as the total amount of network fees on World Mobile Chain. Stakers will be able to stake their tokens to node operators of choice and will in turn be awarded a share of transaction fees.

In the next article, we will explore the many types of transactions that an ENO will be able to engage in, as well as the potential rewards of operating communications and other telecom services on the network.

In this article, we will focus on the inflation part of the EarthNode operators (ENO) rewards to show through examples of the potential rewards that could be earned.

Let’s begin.

In order to give some examples for inflation rewards, we have made a few assumptions:

  • Number of EarthNode operators (ENOs): 1,000.

  • Number of WMT staked per operator: 100,000.

  • Total amount staked by ENOs: 100,000,000.

  • All EarthNode operators have nodes that operate with 100% uptime.

  • All EarthNode operators have equal chance in the random selection (no quality weighting).

The reward for EarthNode operators is divided into four parts:

  • A base reward for operating the node with consistent quality.

  • A fixed fee of 5%.

  • A variable fee (set to 5% in the example) which can be set by each operator to compete based on their operational costs.

  • A delegator reward for the 100,000 WMT that they are staking.

The following three key parameters will influence the actual rewards received per ENO:

  1. EarthNode : Base Level Rewards – World Mobile implements a ratio of rewards to ensure that EarthNode operators receive a base level of rewards regardless of the amount of delegation they attain. This will initially be set at a ratio of 10:90 with 10% of the rewards going to EarthNodes and 90% going to delegators.

  2. EarthNode : Delegation amount - If a node operator has more tokens staked to their node they will receive greater rewards than a node with the minimum amount staked. This represents 90% of the rewards based on the ENO:Delegator ratio described above.

  3. Saturation Point – Once the saturation point is achieved, additional delegated stake does not enhance the amount of token rewards allocated to the EarthNode operator. The purpose of establishing a saturation point is to ensure that the network is sufficiently decentralized and that there is not an excessive concentration of stake on specific nodes. The initial value for the saturation point parameter is 8,533,333.

Example 1: Equal stake per ENO

This example shows an estimate of rewards assuming all nodes had an equal stake and the node remained operational for 12 months from the first, ninth, and fifteenth month following the launch of mainnet.

Note: If a node launches in the first month it is expected to get more rewards than a node launched in the ninth or the fifteenth month after mainnet.

Example 1: Equal stake per ENO

Example 2: No delegation stake for an ENO

This example shows a rough estimate of how much a node would earn if it only staked the minimum amount (100,000 WMT) to be operational and stayed available for twelve months from the first, ninth, and fifteenth month after mainnet launched.

Note: If a node launches in the first month after mainnet, it is expected to receive higher rewards than if it launches in the ninth or fifteenth month.

Example 2: No delegation stake for an ENO

Example 3: Full delegation for an ENO

This example shows an estimate of rewards assuming a node attained the maximum amount staked from delegators to reach the saturation point and was operational for 12 months from the first, ninth, and fifteenth month after the launch of mainnet.

Note: If a node launches in the first month it is expected to receive higher rewards than if it launches in the ninth or the fifteenth month after mainnet.

Example 3: Full delegation for an ENO

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