Current Profit Calculation of Profitable Node
Profitable node: The registered nodes that can obtain the rewards of voting, including BP and BP candidates.
The nodes that obtain more than 0.5% of the total weighted votes are the profitable nodes. The top 23 nodes are BPs, and the rest are BP candidates.
EOSC mainnet will distribute rewards for profitable nodes according to their proportion of the total weighted votes with every block produced. And the rewards will be further distributed accordingly.
For BPs:
- 70% of profits goes to the reward pool, and the nodes can freely adjust the dividend ratio.
- 15% of profits is distributed to nodes’ accounts as the basic salary.
- 15% of profits goes to nodes’ accounts as block rewards.
For BP candidates:
- 70% of profits go to the reward pool, and the nodes can freely adjust the dividend ratio.
- 15% of profits is distributed to nodes’ accounts as the basic salary.
- 15% of profits goes to EOSForce foundation account.
Remark: If the node does not produce blocks or pay the deposit, the node and the voters can not obtain any profits.
Profit Calculation after FIP#7 Takes Effect
To lower the threshold of the node, EOSC mainnet passed EOSC Mainnet Improvement Proposal FIP#7, making some adjustments to the node rewards.
After EOSC Mainnet Improvement Proposal FIP#7 takes effect, the block rewards of EOSC mainnet are distributed as follows:
- 10% of block rewards is distributed by the block-generating nodes in proportion to the number of blocks.
- 10% of block rewards is distributed by all profitable nodes’ rewards according to the proportion of voting weighted votes.
- For 50% of block rewards, the nodes can freely adjust the dividend ratio.
- 30% of block rewards goes to decentralized budget system.
Q & A
Q1: Why do the backward BPs and BP candidates get few rewards?
A: This is because a large number of weighted votes are concentrated in the top BPs, and there are big gaps between the number of votes of nodes. According to the profit distribution formula Node Profit = All the reward of profitable nodes * The proportion of the total weighted votes, the reward for the backward BPs and BP candidates are few.
The problem that the node reward distribution gap is too large will be improved after EOSC Mainnet Improvement Proposal FIP#7 takes effect.
After EOSC Mainnet Improvement Proposal FIP#7 takes effect, In addition to distributing the block rewards according to the proportion of voting weighted votes, BPs (Block Producers) will also distribute 10% of the block rewards according to proportion of the number of produced blocks.
Q2: Why is there less profit when vote for a node than for other nodes?
A: Because the amount of the reward pool of some nodes is relatively large, there are a lot of dividends to be claimed. If a large number of votes are suddenly cast to these nodes, according to the calculation formula of dividends (To-be-claimed dividends = The proportion of voting age * The amount of reward pool), it is known that the reward pool is larger, and our dividends will be more. The extra part is essentially diluting the dividends that the historical voters did not claim.
This problem will also be solved at the next EOSC mainnet update.
Q3: For voters, what factors will affect the voting rewards?
After EOSC Mainnet Improvement Proposal FIP#7 takes effect, the rewards that voters can receive are affected by the following factors:
- Block-producing stability of the voted node.
- Whether the voted node pays the deposit.
- The dividend ratio set by the voted node.
The rewards that voters can receive has nothing to do with the number of votes the node receives. Theoretically, if all the block producers have the same block-producing stability and dividend ratio, and all deposits have been paid. No matter which node a voter votes for, the dividends that can be obtained are the same.
