Guardian Node Rewards
Overview
A total of 250,000,000 $TOPIA tokens are allocated for distribution as Guardian Node assertion rewards over a 3 year timeline.
Rewards are distributed to Guardian Node operators relative to the number of Node Keys they have tied to their operation. The most Node Keys associated with a Guardian Node relative to all other Node Keys in use across all Nodes, the greater the share of rewards per assertion challenge.
Assertion Challenge Rewards
Rewards are issued to nodes each time they participate in an assertion challenge. An assertion challenge is an automatic process that Guardian Nodes participate in to assert the valid state of HYCHAIN's blockchain.
The interval between assertions may be variable, but a predictable amount of $TOPIA can be expected to be distributed each month, relative to the total $TOPIA tokens allocated over three years for rewards. Approximately 6,944,444 $TOPIA are distributed amongst qualifying nodes participating in assertion challenges every month.
Network Fees
Guardian Nodes are rewarded 25% of all transaction fees on the HYCHAIN network. These fees are distributed proportionally to nodes based on their challenge participation and number of keys associated with each node relative to the total number of node keys in operation. Network fee rewards begin immediately when Guardian Nodes become operational.
Rewards Example
Suppose in a month, HYCHAIN's entire network processes 30 million transactions across all games and systems. This translates to an average rate of about 11 transactions per second.
If in this example, the average fee per transaction is 0.4 $TOPIA, the total transaction fees for that month add up to 12 million $TOPIA. Out of these fees, 25% (which equals 3 million $TOPIA) is distributed as rewards to active nodes based on their contribution, measured by the number of node keys they hold. Please note that transaction fees are subject to variability and adjustment up or down over time.
Consider we operate a node that is active 100% of the time throughout the month with 50 Node Keys assigned to it. If the total number of active Node Keys across the network for the month is 12,000, our node's contribution reward is calculated as holding a 50/12,000 share of the total keys, which is approximately 0.4% of the month's rewards.
The calculation of our node's rewards for the month takes into account two components: the share of distributed transaction fees and monthly reward pool. The total rewards for the month are roughly estimated at 6,944,444 $TOPIA from the monthly reward pool plus 3,000,000 $TOPIA from transaction fees, resulting in approximately 9,944,444 $TOPIA.
Therefore, our node's share of the rewards for the month in this example, at 0.4% of the total monthly rewards, is roughly 39,777 $TOPIA.
Updated 3 months ago