💹TNT4 Node Reward Rules v0.2

TNT4 Node Reward Rules v0.2

Overview

To optimize the Titan Network's economic model (tokenomics) and provide more stable and equitable rewards for contributors, we are introducing the TNT4 Node Reward Rules v0.2. This version implements a dynamic reward calculation mechanism based on the Time-Weighted Average Price (TWAP) and introduces a 2x Resource Contribution Reward.

Economic Model Optimization Details

We are introducing a dynamic reward calculation mechanism based on the 48-hour Time-Weighted Average Price (TWAP). This aims to ensure that node operator returns are more stable and less affected by short-term market price volatility. Through the Double Resource Contribution Reward (2x) mechanism, every contributor providing resources to the network receives a fairer return on their contribution.

Note: The TWAP mechanism helps balance token supply with application demand. By smoothing price fluctuations, it encourages long-term holding and network contribution over short-term speculative behavior, laying a more solid foundation for the project's long-term sustainable growth.

Core Reward Mechanism v0.2

1. Time-Weighted Average Price (TWAP) Calculation Model

• Mechanism: Reward calculations will be based on the token's Time-Weighted Average Price (TWAP) over the preceding 48 hours.

• Purpose: To mitigate the impact of short-term abnormal price fluctuations on node rewards, providing more predictable and stable reward expectations.

2. Double Resource Contribution Reward (2x Reward)

• Mechanism: The actual value your node generates for the Titan Network (e.g., revenue from providing bandwidth, storage, etc.) will be rewarded with 2 times the equivalent value in tokens.

3. Reward Calculation Formula

To illustrate the reward calculation process more clearly, we use the following formula:

Reward_Tokens = (Value_Generated * Reward_Multiplier) / Price_TWAP_48h

Where:

• Reward_Tokens: The final amount of Titan tokens you receive as a reward.

• Value_Generated: The value generated by your node's contribution to the network during a specific period (measured in a denomination unit, e.g., USD).

• Reward_Multiplier: The reward multiplier factor, which is 2 according to the v0.2 rules.

• Price_TWAP_48h: The 48-hour Time-Weighted Average Price of the Titan token at the time of reward calculation (expressed in denomination unit per Token, e.g., USD/Token).

4. Reward Calculation Example

If your node generated value equivalent to $10 during a reward cycle, according to the new rules and formula:

• Value_Generated = $10

• Reward_Multiplier = 2

• Assuming Price_TWAP_48h at calculation time = $0.05 USD/Token

• Calculation:

  • Rewarded Value = Value_Generated * Reward_Multiplier = $10 * 2 = $20

  • Reward_Tokens = $20 / ($0.05 USD/Token) = 400 TNT4

• You will receive 400 TNT4 tokens as a reward (of which 60% is immediately liquid, and 40% is locked).

5. Reward Release and Lock-up Rules (Vesting)

All rewards issued under the v0.2 rules are subject to the following release and lock-up schedule:

• Immediate Release: 60% of the reward tokens will be immediately credited to your account and are freely usable.

• Lock-up: 40% of the reward tokens will be temporarily locked.

• Unlock Mechanism: The locked portion of the tokens will be unlocked based on specific rules to be released at the time of the Titan Network Mainnet launch. Please follow official announcements for detailed information.

Effective Date and Scope

• Effective Date: These v0.2 reward rules are effective immediately as of April 14, 2025.

• Applicable Network: These rules apply to all nodes operating within the Testnet 4 (Test4) environment. All subsequent rewards will be calculated and distributed according to this v0.2 version.

Reference Link

• You can view the official reward calculation details page for Titan Testnet 4 via the following link:https://test4.titannet.io/Calculation