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Version: Next (in progress)

Network Incentives

The Nym network has some of the same overall goals as Tor. But we want to enable Nym to scale in response to increased demand (and shrink when demand drops, so as not to waste resources). To do this in a decentralized way, nodes are included in the network based on their pledge, an amount of NYM tokens they provide to stake their node into the system, as well as a system of delegated staking.

There are 2 public networks: the (now permanent) Sandbox testnet, and the Nym mainnet.

Nym Mainnet​

Node operators earn NYM tokens for performing their different operations. See the different pages of each node type for more on their specific tasks in the nodes section of the sidebar for more information.

Joining mainnet​

Nym is a permissionless, open system. As such, users who hold NYM tokens will be able to use their tokens to purchase access to the mixnet, bond nodes, and stake these tokens on existing nodes to earn rewards via the Desktop Wallet.

The majority of users will not need to run a node to gain network rewards; we recommend anyone who wishes to contribute to the network in a non-technical way to delegate their stake to existing node operators via the Desktop Wallet.

If you are technically-minded, feel run a gateway or mixnode! We recommend people run gateways, as we have enough mixnodes from the various testnets we've iterated through recently.

In the future you will also be able to earn by spinning up a service provider if you want to serve the network differently, and reimburse the service credentials users pay you for using your service. Service credentials will be able to be reimbursed for NYM from Nyx blockchain validators.

Sandbox Testnet​

Sandbox is not incentivized but it includes NYMT test-tokens designed to mimic the tokenomics of the Nym mainnet. NYMTs have no real world utility but node operators or delegators will receive NYMTs to see how the economics, reward sharing and other mechanisms of the Nym mainnet works.

caution

Testnet rewards may not exactly reflect how the incentives structure work on mainnet but they will be very close to it!

Joining the Sandbox Testnet as a participant of Milhon​

Existing members of the Milhon testnet were automatically moved over to Sandbox when it launched, as were the balances of their wallets and nodes. These balances are based on a snapshot taken at 15:00 UDT 20th December 2021.

Joining the Sandbox Testnet as a new participant​

There is a NYMT faucet here. These tokens can be used to bond nodes and delegate to existing Sandbox nodes.

caution

If for any reason you lose your mnemonic, the tokens held in your account are lost, and they will not be able to be returned to you.

Network Rewards​

Node operator and delegator rewards are determined according to the principles laid out in the section 6 of Nym Whitepaper.

Below is a TLDR of the variables and formulas involved in calculating these rewards per epoch. The initial reward pool contains 250 million NYM, leaving a circulating supply of 750 million NYM.

SymbolDefinition
global share of rewards available, starts at 2% of the reward pool.
node reward for mixnode i.
ratio of total node stake (node bond + all delegations) to the token circulating supply.
ratio of stake operator has pledged to their node to the token circulating supply.
fraction of total effort undertaken by node i, set to 1/k in testnet Sandbox.
number of nodes stakeholders are incentivised to create, set by the validators, a matter of governance. Currently determined by the reward set size, and set to 720 in testnet Sandbox.
Sybil attack resistance parameter - the higher this parameter is set the stronger the reduction in competitivness gets for a Sybil attacker.
declared profit margin of operator i, defaults to 10% in testnet Sandbox.
uptime of node i, scaled to 0 - 1, for the rewarding epoch
cost of operating node i for the duration of the rewarding eopoch, set to 40 Nym for testnet Sandbox.

Node reward for node i is determined as:

where:

and

Operator of node i is credited with the following amount:

Delegate with stake s recieves:

where s' is stake s scaled over total token circulating supply.