Node Operator Resources
Node Operator Rewards
Find out more about the rewards of running a node machine that provides compute and storage capacity to the Internet computer network
Rewards for Node Providers
Find out what node operators receive as compensation for their work
Rewards of Running a Node
Node providers are rewarded by the NNS for providing their compute and storage capacity to the IC network. The node rewards cover the monthly expenses of node providers for data center hosting, equipment, and man-hours.
New ICP tokens are minted by the Internet Computer blockchain so that node operators – among others – can be adequately rewarded for hosting the network and incentivized to continue doing so.
Calculating CapEx Node Rewards
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.