Mining incentives, reward sizing, and tokenomics question

Hello everybody. I was wondering if anyone could help me to understand how the reward size is determined? On the block explorer, I noticed the current reward value I see over and over is 11.41552511 NKN. Does this value fluctuate based on network traffic, total supply, or size of data relayed? How is there sufficient incentive for miners to keep the network healthy and strong? At current prices, it doesn’t seem profitable to run nodes on cloud hosting. I’m running 15, and realized that at the average NKN reward rate, it’s not exactly profitable… :frowning:

Can anyone help me understand the tokenomics a bit better? What will be the catalyst for the growth and adoption of the NKN token itself?

Thanks :slight_smile:

The mining reward (currently 11.4+ NKN per block) is computed using the economical model we published. Basically the total mining reward each year is a pre-set value (starting from 18M first year and linearly decrease), and evenly distributed among all (1576800) blocks in the year.

In additional to the mining rewards, there are a few other source of income:

  1. Transaction fee
  2. Mining bonus address (MBA). Some income (like name registration) will go to MBA and increase the future mining rewards.
  3. Provide direct service and earn rewards (like tuna, nCDN, etc). We will have a version in the future that includes such services so that node can earn more additional rewards.
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