Node Operator Resources
Calculating Node Operator Rewards
Learn how node provider rewards are calculated as an incentive for storing data and performing computations on the Internet Computer
Node Rewards Calculation
Understanding how rewards are calculated
The Internet Computer calculates node rewards by summing up capital expenditures (CaPex) and operating expenses (OpEX) via the formulas shown below. Node operators sign a contract for 48 months. Thus, the CapEx is calculated for a term of 48 months.
Overview
Here’s an overview of how the different node rewards are calculated:
| CaPex Reward | OpEx Reward | |
|---|---|---|
| Gen-1 Storage Node | (Captial/48 * 4.5) / Mth. ICP token avlue | – |
| Gen-1 Core Compute Node | (Captial/48 * 2.5) / Mth. ICP token avlue | (Mth. OpEx allowance * 2.5) / Mth. ICP token avlue |
| Gen-1 Boundary Node | (Captial/48 * 2.5) / Mth. ICP token avlue | (Mth. OpEx allowance * 2.5) / Mth. ICP token avlue |
| Gen-2 Nodes | (Captial/36 * 2.5) / Mth. ICP token avlue | (Mth. OpEx allowance * 1.75) / Mth. ICP token avlue |
CaPex: Capital expenditures, long-term expenses for inftrastructure investments
OpEx: Operating expenditures, day-to-day costs
Gen-1 Storage Node CapEx Rewards
Let’s have a look how the CapEx rewards for a storage node are calculated:
Gen-1 Core Compute & Boundary Nodes CapEx Rewards
The calculation of node rewards for core compute nodes and boundary nodes follows the same approach:
Gen-2 CapEx Rewards
The calculation of node rewards for core compute nodes and boundary nodes follows the same approach:
Calculating OpEx Node Rewards
We can have a look at how OpEx node rewards are calculated next.