Node Operator

Node Operators are responsible for running the network software. They run high-performance IT infrastructure and bond Rune in order to earn rewards in Rune. They take part in the network by tracking transactions on External Chains, running the protocol and more. If they fail in any of these responsibilities they can be penalized.

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Benefits

Node Operators can deploy their skills and experience to earn a share of Bond Rewards. Bond Rewards are paid out in Rune. Get a sense of how much Rune could be worth with the Rune Value Simulator .

Rewards

Node Operators are rewarded in RUNE for being active on the network. These are called Bond Rewards.

Bond Rewards are influenced by the Emission Schedule and the Balancer.

Rewards are paid when the Node Operator leaves the network. Learn how the protocol tracks Bond Rewards in the Economics Paper under 'Bond Rewards and Penalties'.

Responsibilities

Node Operators run software that keeps the network going. This software—

  • creates vaults for storing assets – Vault Creation
  • helps construct the blockchain – Block Construction
  • watches what is going on on connected blockchains – Transaction Witnessing
  • operates the protocol which coordinates the network
  • allows users to remove assets – Signing Outgoing Transactions
Requirements
  • Able to set up and run high-performance IT infrastructure
  • Hold a minimum of 1 million RUNE
Costs

The THORChain core team has estimated that when the network first launches Node Operators will spend about 1000 USD per month.

The cost as a proportion of revenue will change over time. This is based on the number of active nodes, the starting price of RUNE, the monthly increase in RUNE price and the monthly increase in cost of running a node.

Penalties

Node Operators are penalised when they fail in their responsibilities. This could be if they fail to—

  • make Witness Transactions
  • complete Vault Creation
  • complete Sending of Outgoing Transactions

Learn how the protocol tracks Bond Penalties in the Economics Paper under 'Bond Rewards and Penalties'.

This Spotlight was commissioned by the THORChain team to help spread knowledge and develop the community. Members of the Rebase team had holdings of RUNE exceeding $100 in value throughout the project.

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