The Privasea network introduces a dual reward pool mechanism (PoW & PoS) for Privanetix node operators, ensuring robust incentives, scalability, and a seamless transition to a more efficient privacy infrastructure. This reward design supports early adoption and long-term sustainability while aligning with the evolving needs of the ecosystem.
The Privasea network introduces a dual reward pool mechanism (PoW & PoS) for Privanetix node operators, ensuring robust incentives, scalability, and a seamless transition to a more efficient privacy infrastructure. This reward design supports early adoption and long-term sustainability while aligning with the evolving needs of the ecosystem.
The Privasea Privanetix node reward system operates two distinct reward pools. Each pool allocates 0.1% of its current balance per phase. After a fixed number of phases (configurable dynamically, e.g., 15 phases, where 1 phase = 1 day), the pool balance is recalculated. Each pool is governed by a 0.1% decay function over 15 phases.
The PoW reward pool incentivizes computational contributions from Privanetix node operators. Rewards are distributed based on a node’s machine performance tier coefficient and uptime percentage, independent of staked tokens.
Distributed at 0.1% of the remaining PoW pool balance per phase, calculated based on the weight ratio of each Privanetix node:
Weight = Tier Coefficient × Uptime Percentage
Node Performance Tier Table
Hardware Specifications
Example
Total token supply: 1 billion → PoW pool initial balance = 50 million.
Before pool recalculation, rewards per phase = 50,000,000 × 0.1% = 50,000 PRAI
50% of ecosystem fees (total tokens paid for FHE encryption tasks in the phase) are distributed as supplementary rewards based on node weight.
PoW rewards consist of two components:
Allocated from 5% of the total token supply, using a 0.1% daily decay function for predictable emissions.
Decay Function Example
Distributed immediately based on node weight.
Base Rewards (50,000 PRAI):
Real-Time Rewards (10,000 PRAI):
Rewards are distributed based on staked tokens, node tier, and uptime percentage:
Delegation Weight = Tier Coefficient × Uptime Percentage × Total Delegated Tokens
Stakers receive rewards after deducting the node’s commission fee:
Staker Reward = Allocated Amount × (100% - Commission Rate)
Commission Revenue Example:
Self-Staking Rewards:
Total Node Rewards:
Total Rewards = PoW + Commission + Self-Staking
Example:
APY Structure:
APY = Base APY + (Tier Coefficient × Uptime Percentage × Bonus Multiplier)
Dynamic APY Formula:
Base APY = E / (Total Delegated Tokens + (½) ∑ (Tier Coefficient × Uptime × Delegated Tokens))
Privanetix nodes earn rewards through:
This structure incentivizes high performance, aligns with ecosystem growth, and ensures sustainable scalability.
