Return on Validation
The way our node shares work, you will have a higher daily ROI the more OM is worth.
Because OM is pegged to OX they will stay the same price. This means that part of the cost for minting a node will be fixed. This makes it so that the higher the price, then the higher your return will be.
Iota node (100 OM x 100 OX) :
- OM @ $50 -- Cost of node: $10,000 -- Daily return: 1 OM $50 (0.50%/day)
Rewards are cut down to 50% after being fully vested. What this means is that rewards are reduced after you receive the OM tokens you put in.
As an example, let's say you buy shares of a Iota node:
- You put in 100 OX and 100 OM
- You get 1 OM/day
- After 100 days you'll have gotten 100 OM back
- On day 101 the rewards from that node will be 0.5 OM
Vesting is per node, so this reward cut only happens to the node that has reached full vesting, not on any other node.
Note that you can still get 60% of total rewards if you wait 14 days between withdrawals after vesting.
Using the same example of the Iota node, if you wait 14 days you'll get 0.6 OM on those 14 days.
- You withdraw on day 13: 13 x 0.5 OM = 6.5 OM
- You withdraw on day 14: 14 x 0.6 OM = 8.4 OM
Note that 14 days is the point when you earn more, you can withdraw at any point after this and still get 60% of original earning. This means that if you were to withdraw after 20 days the rewards per day would still be 60% of original rewards.