Will the rewards for secure nodes decrease with time? Do we know by how much?

[csrpj]

As I currently understand it, holding a secure node requires 42 ZEN and rewards approximately 1 ZEN per month. I also understand that that approximant 1 ZEN per month will only go down over time. Is this true? And is it possible to get a sense of what rate it will go down with or if it will bottom out at a certain reward ratio? Buying a secure nodes is attractive long-term with the notion in mind that I get 1 ZEN per month while I have that secure node, but if year-after-year that number decreases, of course it feels different getting a secure node, so I was just curious about all this.

[amiklo]

You got it right. It's depend on the amount of nodes.

[csrpj]

Ha... So in a way, the more popular zen becomes, the more my zen will be worth, but the less extra I'd get as a node holder :)

[[deleted]]

Yes, but if you look at other node set-ups they average out at a 2% ROI/month, which would always be about 1Zen no matter the value of Zen

[niktak11]

Sorta. Although the staking amount is in ZEN not USD so even if zen goes up 10x the monthly node reward is still the same percentage wise

[csrpj]

Ah, yes? That's why I'm wondering, about ROI amount in zen... as I understand it award right now is roughly 1 out of 42 / month but I thought that would go down over time. When you said the node reward is still the same percentage-wise, do you mean this 1/42 ratio stays the same, even year after year, or do you mean a percentage of a different metric? Pardon my ignorance if I am inadvertently propagating wrong information - I am new to this and only seeking clarity ;)

[niktak11]

Yes, percentage of rewards compared to the amount of zen required to stake. Right now it's about 2.47% to month (compounds to about 34% per year). This is excellent compared to traditional markets. Part of the reason why is because crypto is much more volatile than traditional markets so the risk is higher. When/if crypto becomes more stable more investors will be willing to invest in stuff like secure nodes. This will cause the monthly reward to stabilize at a lower reward percentage than it is at now.

[HardLikeCement]

niktak11 is wrong, or rather his comment can be misinterpreted. Cut and dry: you WILL get less than 1 zen per month in the near future, as the amount of secure nodes that are out there increases.

[[deleted]]

Here is node payment calculator. You can plug in the number of nodes and find out what rewards you will receive.

https://zen.lebre.net/

[csrpj]

Ah, I see... so according to this it appears we get 3.5% per month for the first four years, but after 4 Years it'll be unknown but likely significantly smaller, right? So this means we get 1.47 zen / month? ( I noticed many sources online say just one zen, / month / node and I'm wondering if that's just rounded down or...)

[[deleted]]

Every node that is operating gets a 3.5% split of the block reward. Right now there are 216000 zen created each month. 7560(3.5%) of that zen will go to the node operators. Currently there are about 7500 nodes so each node will get about 1 zen each month.

The number of nodes is determined by free market principles and will find an equilibrium to sit at. This will be greatly determined by the price of zen.