Reward Rules for IOST Nodes

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IOST

5 min readMar 25, 2019

IOST Node Options

IOST Nodes are successfully on-boarded into the IOST network if they receive 2.1 Million votes or more. IOST Nodes can choose to be:

Servi Node

A Servi Node is a “full” node that stores the full transaction history of the IOST blockchain, produces blocks and validates transactions. This requires a moderately powerful server and large disk space. It must stay up to date with the current IOST protocol version and remain stable. Servi Nodes are rewarded for this by earning from the “Block Production” reward pool (25% of total rewards). Opting to be a Servi Node is recommended for those with technical knowledge of servers, coding and blockchain protocols.

Partner Node

A Partner Node is a node that does not produce blocks and is meant for non-technical users who wish to contribute to the ecosystem and earn rewards. There is no setup or maintenance required by you. It is the easiest way to earn from contributing to the ecosystem and recommended for marketers, websites, investors, evangelists etc. You earn rewards based on your share of votes as well as your contribution to the ecosystem in which ever way you choose.

Rewards Summary

Elected IOST Nodes share in 4% of the total circulating supply (840 Million IOST) annually as rewards, of which:

420 Million IOST comes from the IOST Ecosystem Fund, and
420 Million IOST comes from Token Issuance.

For the IOST Ecosystem Fund (“Ecosystem Rewards”), rewards are paid quarterly, based on:

the share of votes you received from Voters (210 Million IOST) and
the contributions that you made, scored by the IOST Foundation (210 Million IOST).

For Token Issuance (“Token Issuance Rewards”), rewards are paid daily, based on:

the share of votes you received from Voters (210 Million IOST) and
the number of blocks you produced (210 Million IOST). Block production rewards are only given for Servi Nodes who operate servers meeting the minimum server requirements. Partner Nodes do not qualify.
If a Servi Node has problems producing blocks, it will be penalized if it affects the operation of the IOST Mainnet.

Daily Rewards Distribution Rules

Daily Share of Votes Rewards

The system will issue the daily voting rewards every 24 hours, and distribute it according to the proportion of votes obtained by each IOST Partner at the time of issuance.
Voters can only receive their voting rewards after the IOST Nodes claim their rewards. The rewards need to be claimed manually by activating the system contract. For a step-by-step guide, please refer to: IOST Nodes — Rewards Claim Guide.
Rewards issued are not affected by any subsequent change in votes, and can be collected at any time without deadline.

Daily Block Rewards

The block rewards are distributed according to the number of block produced.
Every block is awarded approximately 3.3 IOST. Block rewards are issued every 24 hours, and need to be manually claimed by activating the system contract.
Rewards issued are not affected by any subsequent change in votes, and can be collected at any time without deadline.

Quarterly Rewards Distribution Rules

Quarterly Share of Votes Rewards

The more votes and the longer the votes are maintained, IOST Nodes will receive more rewards.
The system snapshots the number of votes received by IOST Nodes daily and records a score equal to the number of votes obtained for each Node.
The score is cleared every three months. When awarding quarterly share of vote rewards, we will sum the scores of all Nodes at the end of the quarter. The formula is as follows:

Quarterly share of votes rewards received by an elected IOST Partner = (total score of an elected IOST Node across the quarter) / (total score of all elected IOST Nodes across the quarter) * (share of votes rewards pool from Ecosystem Rewards for the quarter)

Example

Assuming that quarterly share of vote rewards are given on July 10 for the quarter April 1 to June 30, and only three Nodes: A, B, and C are voted in during this period.

Node A: From April 1 to June 30 (91 days), A received an average of 3,000,000 votes daily. At the time of reward issuance, A maintains over 2.1 Million votes (elected status).
Node B: B received 21,000,000 votes on June 30, with 0 votes prior to this date. At the time of reward issuance, B has over 2.1 Million votes (elected status).
Node C: from May 1 to May 31 (31 days), C received an average of 21,000,000 votes daily, after which they have 0 votes. At the time of reward issuance, C has 0 votes (un-elected status).

Quarterly share of vote rewards A receives = (3,000,000*91)/(3,000,000*91 + 21,000,000*1 + 21,000,000*31) * (share of votes rewards pool from Ecosystem Rewards for the quarter)

Quarterly share of vote rewards B receives = (21,000,000*1)/(3,000,000*91 + 21,000,000*1 + 21,000,000*31) * (share of votes rewards pool from Ecosystem Rewards for the quarter)

Quarterly share of vote rewards C receives = (21,000,000*31)/(3,000,000*91 + 21,000,000*1 + 21,000,000*31) * (share of votes rewards pool from Ecosystem Rewards for the quarter)

Quarterly Contribution Rewards Rules

Assessment and grading will be made by IOST Foundation according to the contribution of Nodes to the IOST ecosystem. IOST Nodes will receive rewards based on their contribution score.
This is designed to incentivize IOST Nodes who actually contribute to the growth of the ecosystem and help these IOST Nodes achieve a larger proportion of returns compared to passive investors.
IOST has previously released the IOST Nodes — Contribution Reward System, and will make amendments based on community feedback to better serve the ecosystem.
Rewards issued are not affected by any subsequent change in votes, and can be collected at any time without deadline.

Quarterly Rewards Distribution Schedule

Quarterly rewards issued based on the share of votes and Partner contributions with the expected 2019 claim schedule being:

April 2019: Rewards for Share of Votes and Partner Contributions made from 10 March to 31 March, 2019.
July 10, 2019: Rewards for Share of Votes and Partner Contributions made from 1 April to 30 June, 2019.
October 10, 2019: Rewards for Share of Votes and Partner Contributions made from 1 July to 30 September, 2019.
January 10, 2020: Rewards for Share of Votes and Partner Contributions made from 1 October to 31 December, 2019.

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