Symbol node rewards

[suky321]

Is there any information available that describes what the node rewards will be for Symbol node operators in terms of their balance?

For example the difference between holding 1 million, 2 million or 3 million balance. Just trying to work out the incentive to go for higher balance as opposed to a lower one.

I’ve read about the different parameters like lowering transaction fees on your node, even to zero to encourage competition amongst node operators, and also that delegated harvesters earn 75% with the node operator receiving 25%.

Is there an estimated approximate reward or % ROI for each of the node tiers (1m, 2m, 3m XYM) based on their POS+ based XYM balance, or even information on fixed rewards like the ones on the NEM blockchain which are around 400 XEM per supernode operator.

[eddy]

https://docs.google.com/spreadsheets/u/0/d/1F-EhjKKOwiaFLGZGscjm5i9wLtv0FNGo8KLN8uO4Zkk/htmlview
This

[GodTanu]

There are two nodes now.

・Peer assembly
・API harvest assembly

API nodes are more expensive to maintain.
Is the compensation structure of these nodes different?
Is there any incentive to create an API node?

[cryptonit]

it could be a requirement for be able claim supernode rewards to have the API enabled

[kodtycoon]

Only peer node is needed for harvesting, the rewards don’t change if you don’t run API node.

Edit: as Cryptonit mentioned, supernodes could be different but for the core harvesting as part of consensus and the built in node service fee, it doesnt have any affect

[GodTanu]

There are few incentives for API nodes.
Isn’t that a flaw in the protocol?

The super-node reward system will not last forever.
In the future, the distributed nature of API nodes will be lost.

[jabo38]

@GodTanu

Isn’t that a flaw in the protocol?

I’ve thought some about this.

It is definitely most important to secure the protocol and harvesting and we do this with P2P nodes well. As for API nodes serving data to light clients, we are making it very easy for people to do so. Where as in Ethereum and Bitcoin it is very difficult for community members to run API’s for light clients, in Symbol it isn’t. Most people will earn money for running a P2P node, but if there is no extra drain on resources, many will choose to run an API node altruistically.

I’ll use myself as an example. I buy servers on AWS and like to prepay for three years in advance. But because I’m prepaying for 3 years, I also get slightly larger than needed specs. Now I have that extra hardware and bandwidth, I could chose to run only a P2P node, but why not run an API node too? I don’t have anything to lose and it helps the network.

So for me personally, running an API node in Symbol is a “why not, it will help the network and doesn’t cost me anything extra,” where as in Bitcoin/Ethereum it takes major service providers like Consynsus providing Infura for Ethereum, or Bitpay or Coinbase providing APIs for Bitcoin.

Also, as others have mentioned, anybody building a product on Symbol, will most likely want to also run their own API node just to make sure they have 100% uptime. Many of these will be available to the public too.

So at this point in time, I’m not so worried about there being a lack of API nodes on Symbol in the future. I think there are enough incentives in place for many people to run them. I can’t say this with 100% certainty. We will have to watch and reexamine later. But for now I think it is okay.

[garm]

One must also say that used root servers are relatively cheap to rent from various providers. Per month.
For me now the better choice.
However, one has to wait and see how the network load increases when it goes live.
You could then also consider whether it makes sense to reward nodes that start in new regions.
If you look here (as an example-NIS1- “https://supernodes.nem.io/map”), there is still a lot of scope.

[JohnnyRockQuid]

Great thanks to everyone, you really helped me with your answers

[cryptonit]

supernode rewards will not stay forever but finality voter rewards (5٪) of blockrewards will stay and only >=3mil supernodes can participate

the amount of own coins harvestibg and the fees from other coin harvesting pn top of ur node plus a finality voters payout all together make operate a well maintained supernode a lucrative business even after sn rewards program ends

[suky321]

What kind of % returns on investment does that return? Is it enough to tempt someone who may get better returns for example on crypto savings accounts, some of which offer double digit returns on their stable coins.