I have noticed that my 2 nodes have been earning a LOT less over the past 3 months. Logically my first step was to check the network explorer to see if there was a huge spike of validators. Indeed there were a few more validators. In fact there were a total of 14% more validators added over the last few months. However my two nodes combined have provided a total of 35% less network rewards over the same time period. What is worse is that one of my nodes (the one that was shipped to me later) has made up 74% of my total network rewards. Is this something that is planned? I don’t want to accuse Incognito of anything, and this is most likely just a coincidence, but has anyone else experienced anything similar?
pNode rewards decrease over time?
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From the whitepaper section titled Network Incentive: Privacy (PRV) Mining & Distribution
The block rewards decreased on 10/29/2020; decreasing from 10.92 PRV to 9.94 PRV per earning epoch.
Thus your pNodes should be earning around ~6.956 PRV to ~10.434 PRV per full committee selection cycle – down from ~7.644 PRV to ~11.466 PRV for most of last year.
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I get that but my concern is the total number of days before each mining reward. It is also weird that the node that earns the most (by a wide majority) is the node that was shipped to me last.
This is so normal. Incognito swaps the validators randomly (afaik it uses uniform distribution model). I haven’t calculated recently but to my expert guess, within 3-4 months, all nodes should earn similar rewards according to that model. You already watch them for 3 months but probably the start time of your observation is not the same for all nodes.
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This is very normal. Node selection is totally random, but uniform over a longer time span. With over 2500 nodes to select from, 3-6 months may not be a statistically significant time span to evaluate the performance of two nodes.
I started staking my first node in June 2020, and I’ve added a few since then. I post my stats here for the community, feel free to check it out: Weekly Earning Statistics for 12 vNodes - Week Ending Dec 12, 2020
While it is true that the number of validators have grown at an average rate of about 8-10% each month, and the 1st block reward reduction of 9% occurred end of October 2020 - the value of the token (PRV) has increased by a larger factor (month over month). So at the end of the day, the total fiat/dollar value of your rewards are still going up, besides the variance in node selection cycles.
Based on my 6 months of staking data, I’ve seen the averages come down as the network grows, which is very natural. Here’s how the unit economic analysis of a node looks like if I considered the last 4 months of my data:
For a standard pNode (staked by Incognito) - you would be earning an average of about 0.75 PRV per day.
For a fully staked pNode (you stake 1750 PRV) - you would be earning an average of about 2.14 PRV per day. This the same for a fully staked Virtual Node as well.
Disclaimer: These numbers are based of my averages for the last 6 months, run across 12 nodes. They may differ for you or other validators on the network. These numbers will also change over time.
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