Reward batching: Wistful Wagyu’s killer feature
Wistful Wagyu has landed — and it’s packing some features that service node operators have been requesting for ages! This hardfork, we’re making changes to the staking rules for service nodes as well as how rewards get doled out.
It’s important to note something which is not changing — the block reward. The service node reward will remain at 16.5 OXEN per block, with a 2 minute block time thanks to Pulse.
Bulk billing: Batching service node rewards
With batching, we are changing the frequency service node are paid their rewards due and the way in which rewards are processed.
Previously, rewards were very simple. Each block there is a block leader who ‘creates’ the block, and they are paid the entire 16.5 OXEN reward immediately. Although this is conceptually simpler, it results in some technical problems (like dust accruing to nodes, requiring wallet sweeps to resolve) and some more human problems (like being difficult to predict when you will earn a reward).
Batching addresses these issues (and more)! Now, the network will track the rewards accrued by each service node address over a period of time, then reward every service node in one batch transaction. This also has the benefit of reducing the amount of outputs on the blockchain, thus reducing the blockchain growth.
Now, each block reward will be shared amongst all active service nodes who have been active for 1 day (720 blocks). At the current network size of ~1,800 nodes, each node would earn 0.00916 OXEN per block.
Note that, under the current model, a service node would earn 16.5 OXEN in 1/1,800 blocks. So, over any given 1,800 block period, a service node would earn the same amount of OXEN (16.5) in the old system and the new system.
The batch transaction will be issued to your wallet by the network every 3.5 days (2,520 blocks) — so service nodes will reliably receive rewards every 3.5 days. Here is a simple calculation showing the earnings of one service node in a network of 1,800 nodes.
The service node will be paid 23.1 OXEN every 3.5 days. However, if the same wallet address is actually running 2 service nodes, they will be paid twice as much, but no more often.
And be paid 46.2 OXEN instead. Overall, this is much more convenient for people running multiple nodes, will reduce the need for wallet sweeps (a common bug-bear for service node operators), give operators more predictable payment types, and…because we have reduced the number of output txs, we can also change our staking rules to allow for more contributors.
Ten’s a party: Changes to service node contributions
The number of contributors to a service node is increasing from 4 to 10 — meaning 1 operator and up to 9 contributors can jointly stake the 15,000 OXEN requirement to start a service node.
The rules for minimum stakes are not changing, but the amounts are changing due to the higher number of contributors. To calculate the minimum contribution required, divide the amount remaining to achieve a full stake (15,000) by the amount of open slots remaining.
For example, if an operator contributed the minimum 3,750, there would be 11,250 OXEN required to fill the entire stake.
The operator has taken up 1 of the maximum 10 contribution slots, so there are 9 remaining.
1,250 OXEN is now the minimum contribution. Continuing, if the third contributor chooses to stake more OXEN than the minimum contribution, it will lower the minimum contribution for the following contributors. For example, if they chose to stake 2,050 OXEN.
The minimum contribution for future contributors is now lower — 1,150 OXEN.
You can continue calculating this value as more contributions are made until the full 15,000 OXEN stake requirement is met. Note that, just as before the hard fork, you cannot make a contribution which would cause the service node to exceed a 15,000 OXEN take.
This change also introduces the concept of a ‘small contributor’, which is someone who contributes less than 25% of the service node's total stake (less than 3,750 OXEN). To try and prevent a large increase in unlocks due to the extra number of people contributing to nodes, small contributors will not be able request an unlock until 30 days after the service node is created (that is, its full stake is met and it is participating in the network). Once this 30-day period has passed, unlock requests will be executed after 14 days. For example, if a service node was created on January 1, a small contributor would not be able to request an unlock until January 30, with their funds finally unlocking on February 14.
Large contributors (3,750 OXEN or more) and operators are able to request an unlock at any time. Additionally, a service node operator must stake at least 25% (3,750 OXEN) of the service node’s requirement.
Get in touch
We’ve been working on Wistful Wagyu for a while, and it should provide a bunch of really big quality of life upgrades for people running service nodes. We are excited to see how these changes will impact the network and hope to see more people getting involved with contributing to service nodes now that the financial barrier to entry has been lowered.
If you are a service node operator and need help upgrading your service node, follow the instructions here, get some help in the service node channel on Telegram, or join the Oxen open group on Session.
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