Node Earnings
Operating a dVPN node incurs expenses for the owner, including the acquisition or rental costs of hardware and electricity bills. In exchange, a novel reward system, known as the Node Revenue System, has been in operation since September 2023. You can have a look at the current Node Revenue chart on Sentinel Stats
What is dVPN Node Revenue System?
With this system, white-label applications like Meile dVPN, Independent VPN, Based VPN, and others will utilize the innovative on-chain Subscription Plan. These applications will have the ability to choose nodes from the public list, which will then be added into the subscription.
This Subscription Plan will be shared by the white-label applications and after sufficient optimization and testing, white-label applications will begin to create their own individual subscription plans overtime as their bandwidth usage increases exponentially from here on out.
This makes Sentinel a revenue generating ecosystem.
Nodes rewards will be paid out every hour. In the future dVPN/USD price calculation will be readjusted every 1 hour using an on-chain oracle.
This will create a market for using a dVPN and strike a balance between the quality/performance of a node vs the price set by the owner. Setting the price too high will get you less customers and setting it too low will cut some of your profits.
What does getting added into a Subscription Plan mean?
Nodes added into a time-based subscription plan will be paid based on monthly flat rates. The creator of the subscription plan (dVPN app owner) will lock tokens with each node added into the plan. Payment from these tokens is deducted every 1 hour of successful up-time
This subscription plan will be shared by multiple white-label applications and after sufficient optimization and testing, white-label applications will begin to create their own individual subscription plans overtime as their bandwidth usage increases exponentially from here on out.
The Revenues Explained
In delineating of on-chain revenue, it is crucial to emphasize that payments directed towards nodes are intended to originate solely from white-labels. However, it is noteworthy that these payments are currently experiencing substantial subsidization, particularly with the uptick in usage and the integration of in-app advertisements.
Revenue, in essence, signifies compensation for services rendered. The calculation presented here unequivocally reflects this definition. It's important to underline that this is not a giveaway or mere incentive; rather, it represents tangible monetary compensation extended to users.
It is essential to distinguish this as network revenue rather than organizational revenue, and this classification is apt. For example, consider Uber's strategy of incentivizing drivers to fortify supply ahead of demand spikes. If Uber were to construct a chart depicting total earnings by drivers, it would include the value of the provided incentives in the calculation. This is because such funds fall under the category of payments made for services rendered, irrespective of whether they were subsidized or not.