Service Node Rewards

The WalletConnect Network implements a carefully structured reward system for node operators, designed to incentivize high performance and long-term commitment. The node rewards budget is split into two phases, with the first phase addressing the unique challenges of the WCT token non-transferability period.

Phase 1: Non-Transferability Period​

During this initial phase, a fixed-base reward structure is implemented, resulting in the following token-base revenues:

1. Initial Allocation: 100,000 WCT are distributed as initial allocation and can be staked. These tokens are locked for the entire period of non-transferability.

2. Performance Boost (B_n): A boost given to nodes to reflect their performance and activity that is not based on WCT price.

Boost Calculation​

The performance boost (B_n) is calculated as follows:

$B_n = \alpha + (weight \cdot performance score)$

A multiplicator (M_n) is also applied:

$M_n = \frac{100,000}{T}$

Where T is the period on which the initial allocation is locked.

Weight Distribution​

The boost is based on the weight of the node relative to other nodes. Initially, if there are 15 nodes, each getting 100,000 WCT, they would each get 6.67% weight. This stake weight evolves if some nodes do not restake their boost.

Performance-Based Rewards​

Individual node rewards are conditional on the performance factor $U(i,t) \in [0, 1]$. In line with the performance factors for other groups, there is a set of KPIs defining this. Initially, it will be based on uptime and latency.

For a detailed explanation of how these factors are calculated and weighted, please refer to the Performance Evaluation section.