Vite Incentive Plan — Full Node Rewards Program Upgrade

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Vite Labs

3 min readMar 29, 2021

Vite is launching a brand new Full Node Rewards Program to increase participation in the Vite Mainnet and provide more flexibility for full node providers to earn rewards. This rewards program upgrade will take place on April 3, 2021 and will replace the current Vite Full Node Incentive Plan.

The difference between the current and new Full Node Rewards Program

Compared with a fixed amount of daily base rewards, the new Full Node Rewards Program comes with a new structure and incentives. A new Snapshot Block Producer (SBP) named “FullNodePool“ will be set up and maintained by Vite Labs. It will be backed by 10 million VITE votes from the Vite Foundation. All income for the “FullNodePool“ SBP, including block creation rewards and voting rewards, will be shared with all eligible full nodes.

The size of the full node rewards pool varies on a daily basis. It will determine the incentives provided by the Vite Foundation. The calculation is as follows:

a. On a daily basis, when the size of the full node rewards pool ( x ) is no more than 8,000 VITE, an equal mount will be provided by the Vite Foundation.

b. On a daily basis, when the size of the full node rewards pool ( x ) is above 8,000 VITE, the incentives are determined by the following equation.

The following graph provides a visualization on how incentives are calculated.

Important details on the upgrade

Scheduled upgrade time: 14:00 on April 3, 2021 (UTC + 8)
Rewards pool SBP name: FullNodePool
Rewards distribution time: Starting at 13:30 (UTC +8) daily
The total specific daily rewards are dynamic and based on the equation;
Rewards will be shared equally by all live (uptime is above 90%) full nodes in the pool;
A new staking contract will be deployed to align with the upgrade. Existing full-node operators are required to cancel the original staking and re-stake for the new smart contract after 14:00 (UTC+8) on April 3.
A 72-hour migrating window will be granted, starting at 14:00 (UTC+8) on April 3 to April 6. During the migration, full node rewards will be distributed based on the up-time on April 2. Starting on April 6, the rewards distribution will follow the new program.

FAQ

What is a full node?

In Vite network, a full node is responsible for maintaining a complete copy of ledger, sending or receiving transactions, and verifying all transactions in the network. Full nodes can also participate in SBP election and voting. A full node exposes HTTP/WEBSOCKET APIs externally and has a command line console at local.

How to run a full node?

Please visit: https://vite.wiki/tutorial/node/install.html#installation

What are Block Creation Rewards and Voting Rewards?

An annual inflation of up to 3% of circulation of VITE are minted as Snapshot Block Producer (SBP) rewards. These rewards are split equally in two parts. 50% of rewards will be given to block producers in number of the blocks created, called Block Creation Reward. The other 50% of rewards will be given to the top 100 SBPs as Voting Rewards determined by the amount of votes received in a particular cycle.

The Vite Foundation reserves the right of final interpretation.

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