Calculating Rewards

Operating a node or delegating to a node operator comes with rewards. A total of 20% of the SOPH supply will be allocated to node rewards distributed over three years. The rewards will be distributed as follows:

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Full Nodes

A total of 5% of the SOPH supply is allocated to full node rewards.

This will be distributed proportionally over three years, with approximately 0.032% distributed weekly.

Example Calculation:

• Let’s assume an operator has 20,000 delegated memberships
• The total supply of $SOPH tokens is 10 billion
• Weekly distribution is approximately 0.032% of the total supply
• There are 80,000 active delegated memberships, including yours
• Your weekly reward would be:
• $\frac{10^{10} \times 0.00032 \times 20,000}{80,000} \approx 800,000$ $SOPH

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Light Nodes

10% of the SOPH supply is allocated to light node rewards.

This will be distributed proportionally every week. It has a linear vesting over three years, with approximately 0.064% distributed weekly.

However, there is a minimum liveness threshold to meet to qualify for the rewards.

Example Calculation:

• Let’s assume there is an operator running a light node with 20 memberships delegated to it
• The total supply of $SOPH tokens is 10 billion
• There are 60,000 active memberships
• The reward is distributed weekly over 156 weeks
• The weekly reward of that operator would be:
• $\frac{10^{10} \times 0.1 \times 20}{156 \times 60,000} \approx 2,136$ $SOPH

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Delegated Guardians

Another 5% of the SOPH supply will be used to reward those who delegated their Guardian Membership.

This 5% will be distributed proportionally every week over three years and will only be given to delegated memberships that are on currently active nodes.

Memberships that are not active for a given week do not receive the weekly reward

Example Calculation:

• Let’s say you own 1 membership. Here’s how your weekly reward is calculated:
• The total supply of $SOPH tokens is 10 billion.
• 5% of this supply is allocated for rewards over 3 years.
• There are approximately 120,000 memberships in total, and the reward period lasts for 156 weeks.
• To calculate your weekly reward:
• $\frac{10^{10} \times 0.05}{120,000 \times 156} ≈ 27$ $SOPH