SmartNode rewards explained!

in smartcash •  9 months ago

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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.

SmartNode Rewards

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.

rewardnode2.gif

Payment Calculations

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.

If you have any questions or want to join the community, join us here!
Discord:
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Slack:
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Forums:

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!

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I hope I can get a Smartnode someday!!

Congratulations @allemeister!
Your post was mentioned in the Steemit Hit Parade for newcomers in the following category:

  • Pending payout - Ranked 9 with $ 93,93

I also upvoted your post to increase its reward
If you Like my work to promoting newcomers and give them more visibility on Steemit, feel free to vote for my witness! You can do it here or use SteemConnect

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Thanks mate! :) appreciate it a lot!

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Σ$$$ Tipped @allemeister Σ10 SMART! Comment @smartbot help to claim. Currently the price of SmartCash in the market is $0.356 USD per SMART. Current value of the tip is $3.56 USD. To find out more about SmartCash, please visit https://smartcash.cc.

Great explanation,i have resteemed for my followers to see.

Thank you very much.

Great article. Explains the smartnode payout process perfectly.

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Thanks scooter!

This is the best explanation I have seen yet!! The 5 day period is what I came up with by the calculations, but your explanation was easy enough for anyone to understand!

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Thanks! Tried to make it as easy to understand as possible.
Hopefully it helps people out!

Good explanation, I am thinking of setting up a few nodes but I'm a total amateur. This helps many people understand exactly how the nodes get paid. I guess every five days is pretty good. Do you know the approx payout on a node every five days is right now?

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Aye :) Keep in mind that 5 days is an interval average, so in the long run (if the nodecount stays the same) you'll average 5 days.

Approximate payout is 226 SmartCash atm. Calculations are included in the post :)

@allemeister, you also got this MASSIVE upvote from yoo? Wonderful!

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Indeed! Really insane :D!
Working on next article but it will take a few days to polish / fix graphics.

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wow, I like your drive and ambition! We have a lot in common. Come to my group, let's grow together! https://discord.gg/JMkJM8x

Nice article

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I didn’t know you were on Steemit! Thanks for helping get my wallet converted and updated properly a few months back! Now following! #TeamSmartcash

Good work mate, i know the community was wondering how SmartNode rewards are done.

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Thanks :D!

It looks like the SmartNode will reach 20,000 since there is no limit yet. Do you think it would still be profitable if that number is reach.

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Of course, with more nodes, the ROI will be lower.

But, adding the SmartRewards on top of rewards from nodes, it will still be profitable even with a much higher pool of nodes.

With InstantPay being implemented and hopefully integrated with merchants, along with more exchanges, the price will hopefully rise. Not only making it more profitable, but also make it more costly to set up new nodes and thus, slowing down the increase of nodes.

I look forward to see how the future plans out :D

Good explanation, but a big mess. I didn't find that with other coins.

Great info. I just finished the set up for my first SmartNode...Now, counting the days for the first payment!

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Awesome! Congratulations! :)

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Thanks a lot!!

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Σ$$$ Tipped @allemeister Σ250 SMART! Comment @smartbot help to claim. Currently the price of SmartCash in the market is $0.286 USD per SMART. Current value of the tip is $71.50 USD. To find out more about SmartCash, please visit https://smartcash.cc.

I have had a real struggle getting there but have achieved the 10000 smart and I am now waiting patiently for my wallet to update... couple more days and my node should join the others

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Join the SmartCash discord for assistance if needed! We help a lot of people out that get stuck/has questions. Especially support for setting up nodes :) https://discord.gg/TH3TKn

Very informative ! Must read for every Smartnoder.

OK, I've been sitting on my stash of Smart -- hearing that we can reap both by staking and posting a smart node is double incentive to get my head around the instruction. Thank-you.

Learned a lot from this Post ! :) Happy to have a SmartNode running, can't wait for my first Payout

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Happy that I could help! :D Did you receive a payment yet :D?