What is a Location NFT and How to Earn it?
GEODNET is the world’s largest decentralized network of GNSS reference stations, as well as one of the leading web3 #DePIN (Decentralized Physical Infrastructure Network) projects. A permanent GNSS reference station on the GEODNET network is called a Satellite Miner. The long-term goal is to fully cover the land surface of the Earth with 100,000 evenly placed Satellite Miners, which will form a network about twenty times larger than any existing Continuously Operated Reference Station (“CORS”) network.
Previous #DePIN projects have struggled to create even network coverage as many blockchain and crypto enthusiasts currently live in major cities, and there are also generally fewer people in rural areas. The GEODNET Location NFT is an important tool that incentivizes even geographical deployment distribution. Each GEODNET Location NFT is a unique, non-fungible ERC-20 token issued on Polygon.
For reference, here’s the GEODNET Location NFT collection on Opensea: https://opensea.io/collection/geodnet-location-nft
Location NFT — How to Earn? One Per Hex Rule
The Location NFT is awarded to the first high-performance Satellite Miner installed in a GEODNET Hex. At the end of each month, a new batch of GEODNET NFTs is sent to the newly-qualified Satellite Miners’ wallet addresses on file.
To qualify, the Satellite Miner must receive 98% or more of the eligible rewards for a 30-day period, and it must be the first Satellite Miner in the hex to do so. This metric is known as the Rolling Rewards Rate (RRR), and it is prominently displayed on the console.
To reach the 98% threshold, the installation of Satellite Miner needs to be optimal and the online rate needs to be very close to perfect. But with a clear view sky and a stable connection, this is easily achievable.
Prior to April 1, 2023, GEODNET issued Location NFTs to all Satellite Miners that maintained a 30-day RRR exceeding 98% as a reward for early adoption.
As of April 1, 2023, only the first eligible miner in a hex will receive a Location NFT.
Crowded Hexes
In a crowded hex with multiple Satellite Miners, only the Miner with a Location NFT is eligible to receive the full rewards rate. The other Satellite Miners will split eligible rewards.
(Note, for hexes where multiple Location NFTs were rewarded prior to April 1, 2023, all the Location NFT holders in that hex are eligible for the maximum reward rate).
What if my Satellite Miner has an NFT, but my RRR later drops?
If the Miner RRR drops, the miner does not lose the Location NFT. However, the rewards rate does drop in accordance with the current Miner performance. In other words, the Location NFT does not guarantee rewards. The Location NFT only guarantees that the Satellite Miner is eligible for the maximum rewards.
Future Benefits for Location NFT Holders
GeoDAO, the Foundation behind GEODNET, is considering additional benefits for Location NFT holders. In particular, there is active discussion on how the Location NFT holder may be able to preferentially participate in Governance activities.
When considering the proposition of Satellite Mining, keep in mind the added value and benefits of acquiring a Location NFT.
