Node Operation Rewards

A total of 9% of the token allocation is dedicated to users operating nodes. To ensure the sustainability of network operations and a balanced distribution of value, a halving mechanism is designed to occur every year. Based on this mechanism, the rewards for running nodes in the first year amount to 108,000,000, which is approximately 9,000,000 per month.

Rewards Form & Settlement Time

Participants operating a node will receive rewards in the form of $veSonic. Node Rewards are distributed daily, with settlement occurring at 00:00 UTC. Users can log in to the Node Dashboard to check their rewards. To withdraw $veSonic to the blockchain, users need to claim it and ensure their Solana address has enough gas.

Details on Node Operation Rewards Distribution

1. Proof of Work Basis: Node rewards are calculated based on proof of work. When a Node NFT successfully completes a validation and is verified, it earns a corresponding amount of proof of work. (The amount depends on whether the Node is delegated to another Node Validators(addresses) or self-delegated.)

2. Validation Process: Validation occurs every 1-2 minutes. Each round of validation will involve the system randomly selecting a portion of Node NFTs to participate in the validation process. The Node Validators (addresses) to which these Node NFTs are delegated will then submit the validation results.

3. Reward Distribution: After submitting validation results, the system rewards the Node Validators(addresses) with y*100 proof of work, where y is the number of Node NFTs delegated to that Node Validators(addresses) and selected for validation in that round. A percentage x% (which is set by the Node Validators(addresses) owner) of the reward is allocated as a commission fee to the Node Validators(addresses). The remaining y*100*(1-x%) is evenly distributed among the Node NFTs that participated in the validation.

4. Daily Rewards Calculation: By 00:00 UTC the following day, the system aggregates the proof of work from all Node NFTs and distributes the daily Node rewards based on their accumulated work, weighted accordingly.

Important Note: Ensure the stability of your Node Validators (addresses) network to increase the chances of your Node NFTs being selected for each round of validation. If the Node Validators (addresses) are inactive, the delegated Node NFTs will also be unable to participate in validation.