In this short post I will explain SmartNode rewards.
SmartNodes, the masternode system in SmartCash, have gained a lot of popularity in the 10 days since their launch. The number of SmartNodes has grown from from about 5000 nodes at time of launch to 8000 nodes at time of writing! This amazing growth is wonderful for the network, but has created a lot of questions from the community.
There has been uncertainty on how these rewards are distributed.
With the help from the developers I'm able to clarify how they work.
Disclaimer: Values in caluclations are subject to change as node count changes and block height increases., calculations are made with the node & block numbers at time of publication.
All enabled SmartNodes are put in a line based on uptime since their last reward.
To begin with I will explain what can make SmartNodes to lose their position in the line:
- Downtime of 60 minutes or more will mark nodes as EXPIRED and would send them to the back of the line when they are restored.
- Running the "start-all" command from the dekstop wallet will send non-expired nodes to the back of the line as if they are starting fresh.
"Start-missing" will only attempt start nodes that are not ENABLED and in need of a restart and is the advised way to start or restart multiple nodes.
- If the IP address of the node changes, the node will go to the back of the line.
A static IP is required for a node to remain functional and eligable for rewards.
How nodes are chosen for payments
The top 10% of the total amount enabled nodes in the line are part of the selection pool.
Selection for payments is determined by the block hash and transaction ID. Which in turn is used to select a node in the selection pool for the next reward.
As of now there are 8000 nodes. Assuming all 8000 are enabled, the top 800 in line are currently in the selection pool and are waiting to be chosen for the next SmartNode block reward.
SmartCash blocks take 55 seconds to solve.
This means that 1570 blocks are solved per day. (86400/55 = 1570)
10% of the block rewards are distributed for SmartNode rewards.
This is calculated by (5000*143500/block height) * (10/100) = SmartNode reward
At this moment the SmartNode reward is 228 SmartCash.
To calculate the payment interval a calculation of Amount Of Enabled Nodes / Block Rate is made.
At this moment there are 8000 enabled nodes so... 8000/1570 = 5 days
What does the 5 days mean?
5 days is the average time interval for the next payment.
It can be 1 day, it can be 10 days, but the average interval is 5 days.
This means that there is no guarantee that the node will receive a reward within 5 days, but an interval average.
Note: There is a delay for first payment after the initial 10,000 smart collateral transaction. This delay is calculated by (2.6 minutes) * (number of enabled nodes).
After the first payment, the rewards are calculated as stated above.
Example: If I make my 10,000 smart collateral transactions to a new address for a fresh node with the current 8000 node count, it will take up to 14 days for the first reward.
SmartRewards on top of SmartNode Rewards!
SmartNodes are also eligible for SmartRewards!
SmartRewards are distributed after snapshots which occur the 25th each month.
To be eligible for SmartRewards a minimum of 1000 SmartCash is needed in an address (10.000 are already in the node addresses as collateral) and needs to have no outgoing transactions since last snapshot.
15% of the block rewards from all blocks between two snapshots are distributed between all eligible addresses proportionally to their value.
If all funds in the node are untouched between two snapshots, both SmartRewards and Node Rewards are accumulated.
If you want to learn more about SmartCash, read my guide here.
Shoutout to Solarminer for helping with clarifying information, and Zaphoid for helping with the article!
Constructive criticism and resteems are greatly appreciated!
Thanks for reading!