Who, how and how much pays to node providers?

General DFINITY
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  • As far as I know node providers are payed in ICPs. Are those ICPs automatically minted by some protocol or Difinity has an ability to mint them manually?
  • Using info from the dashboard, I calculated that node providers’ reward is pegged to USD or SDR, not ICP (the lower ICP price, the bigger their reward in ICP). So node providers receive about 1.5 mln USD each month. Are my estimates correct?
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:point_down::point_down:

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Thank you. This is exactly what I was thinking about! One question is left.

  • Are node providers’ rewards minted automatically or manually by Dfinity?
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As it is something every month, surely it is automated. But I can’t confirm it…

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Yes, correct this is automated.

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When are node rewards distributed?

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Ah never mind, the proposal is created on the 14th of each month. Proposal: 54781 - IC Dashboard

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Wait… the last node provider reward proposal was in June of this year? How about the other proposals for July and after? Proposal: 65056 - IC Dashboard

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Hi @jzxchiang the payout of node provider rewards has been automated in the middle of this year.

You can monitor the payouts to node providers over time on the IC dashboard here

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Thank you, this answers my question!

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I have a question. I keep seeing that rewards for running a node provider are ICPs. However when I look at the calculations I seem to keep stumbling across the phrase XDR. What is that? if I used the calculation with the context of for example opening 1 node in Australia. Can someone more experienced tell me what the numbers might look like in terms of monthly rewards? I would greatly appreciate it. Just having a hard time figuring out the mathematics behind it lol (maths isn’t my forte). Thank you legends in advance.

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XDR is the standard symbol for a virtual currency equivalent to asset called “Special Drawing Rights” which is defined by the IMF using a weight aggregate of real (fiat) currencies. Basically it is an international monetary asset unit which varies with a combination of USD, EUR, RMB, YEN, etc weighted by the dominance of each currency.
The Internet Computer uses the current XDR exchange rate as an international stable currency equivalent when calculating (a) node provider rewards to be paid each month in ICP tokens, and (b) conversion of ICP to XTC which are the cycles tokens burnt by canisters (smart contracts) to do computational work on the IC blockchain.

Specifically for the per-country node provider remuneration tables you are probably referring to, you can convert XDR into your preferred currency using many public FX exchange information websites. Then consider the monthly rewards per node as payments of that real currency amount in the current equivalent value of ICP tokens.

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so i’ve just tried to do the calculation, and here’s a breakdown of it - just want to get a fresh pair of eyes to confirm I did it right.
reward(g, n) = cost(g) * mult(g) * r(np, g) / (4 * 12) - note this is for one node.
cost - 47000
mult- 2
r - 0.95
I got 1856.25 - which I assume is ICP. Now I went onto the converter and punched in 1856.25 ICP to XDR which gave me 18457.63 now when I convert that into AUD (my native currency) I get $36,803.96. Is this sound right?
Any help would be appreciated <3

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hi,
I’m planning to became a node provider .
any suggestions ?