Greetings!
As work is being done to decrease rewards for Gen-1 and increase the decentralization among Gen-1 NPs, the question arises regarding the rewards amount that node providers would get if they incurred additional costs to relocate their nodes to a new country not yet represented on the IC thereby increasing decentralization.
When Gen-1 and Gen-2 reward amounts were in the earliest stages of discussion years ago, it became clear to everyone that data center costs vary widely around the world. As the topology stands right now, there are already nodes set up in the countries of the world that are most economical and stable.
It is therefore clear that if one of the new NPs who are purchasing “excess” Gen-1 servers is willing to move those nodes to a new country, they would incur:
- Higher DC costs than any of the current Gen-1 NPs
- Significant transportation and import costs to move the servers
It is recognized that adding another country to the topology is more desirable for decentralization compared to if the nodes remain running in a country/region that already has many other nodes. We therefore feel that at this time, a slight increase in rewards is justified for a NP who moves nodes to a new country.
We would therefore like to propose a Gen-1.1 rewards value that is a 10% increase over the highest current Gen-1 base reward value, for nodes in a country that is new to the IC, with the understanding that:
- Due to the recent change from Gen-1 to Gen-1.1, these base rates are 33% less than Gen-1 NPs got originally, so this is still a significant decrease from the Gen-1 amounts.
- This proposal is only for moves that occur as part of the Gen-1 to Gen-1.1 transition happening in Q4 2024 - Q1 2025.
- The current highest Gen-1 reward value is 1234 XDR, so the proposed value would be 1357 XDR.
- The “new country” should not currently have any Gen-1 or Gen-2 nodes running as of December 2024, nor should it be a country that is an EU member.
We welcome any thoughts that the community has.