Node Rewards

20% of the $SOPH token supply is allocated as rewards for Sophon Guardians over 3 years (156 weeks) counting from the full public launch of Sophon network (expected on Q4 2024). This allocation is divided into three categories:

All Active Delegated Memberships

• Distributed to all delegated memberships that are being used on any active nodes

• 5% of $SOPH token total supply with a proportional distribution every week

• Each active membership receives 1/(total supply of memberships) portion of the weekly reward

• 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:

    $\frac{10^{10} \times 0.05}{120,000 \times 156} ≈ 30$ $SOPH

Sophon Light Nodes

• 10% of the total $SOPH token supply is allocated for rewards over 3 years, with approximately 0.064% distributed per week.

• A minimum liveness threshold is required for a light node to qualify for rewards.

• Weekly rewards are fully distributed to active nodes based on their participation.

• Example Calculation:

  • Let’s say 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

• The split between the operator running the light node and the delegates is defined by the former, and it is up to Guardians to accept or look for other operators.

Sophon Full Nodes

• 5% of the total $SOPH token supply is allocated for rewards over 3 years, with approximately 0.032% distributed per week.

• Weekly rewards are fully distributed to active nodes.

• Example Calculation:

  • Let’s say 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.

  • To calculate your weekly reward:

  $\frac{10^{10} \times 0.00032 \times 20,000}{80,000} \approx 8,000$ $SOPH

• The split between the operator running the full node and the delegates is defined by the former, and it is up to Guardians to accept or look for other operators.

Important Note: During the initial period where only Sophon Labs will be running a sequencer node, 100% of the Full node rewards will be distributed directly to the Sophon Guardians that delegated memberships to it.

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Rewards will be distributed at a weekly basis, with each distribution subject to a 3-month lockup period after claiming. Users have the option to unlock their rewards with immediate effect, but doing so will incur a linear penalty until the 3-month lockup period is complete. Example below:

• A Guardian claims 10 $SOPH, starting the 3-month lock up period

• After one and a half month, the Guardian decides to unlock rewards - instead of receving the 10 $SOPH, they will receive 5 $SOPH.