Introducing FluxCloud Progressive Node Rewards
FluxNode operators are essential to the network as they supply the computing power users can rent through FluxCloud.
We want node operators rewarded fairly for their contributions, so we are introducing Progressive Node Rewards (PNR); this will ensure that:
- Flux remains dynamically scalable in the face of changing network demands.
- Flux benefits from an adaptive, performance-based reward structure.
- Constant node uptime is incentivized.
- Underperforming nodes are penalized for failing to maintain network integrity, as they will not receive any PNR.
Let’s review the current FluxNode reward structure and outline how it will change once PNRs occur.
Current Node Reward Structure
Node operators earn 50% of block emissions, distributed among three FluxNode tiers: Cumulus, Nimbus, and Stratus.
Each tier requires varying amounts of $FLUX staked as collateral and varying hardware specs to operate a node.
Each node tier can generate different computing power levels for DApps hosted on Flux.
Node operator rewards are proportional to the computing power each node tier contributes to the network. For example, because Stratus nodes provide the most computing power to Flux and require the most complex hardware, they earn the highest reward allocation.
Right now, the only income FluxNode operators earn is from 50% of the block emissions, split over the following ratios:
- Cumulus nodes receive 7.5% of block rewards.
- Nimbus nodes receive 12.5% of block rewards.
- Stratus nodes receive 30% of block rewards.
This works out to the following token earnings:
With the Flux halving event, these earnings will decrease every 2.5 years, where awards from block emissions are cut in half as the rate of new tokens issued into the circulating supply slows by 50%.
Ideally, a cut in the supply rate positively influences the value of $FLUX, so even as the block rewards halve, node operators still earn value. Historically, this has, unfortunately, not always been the case. PNR will drastically increase the earning potential of node operators.
Changes With PNR
The distribution will remain the same, in addition to the 50% block reward. FluxNode operators will now earn a portion of InFlux revenue from FluxCloud compute sales — applications operating on Flux and paying to use network computing power.
To begin, node operators will earn 25% of revenues. This number will increase by 2% annually until 50% of application payments are allocated to node operators. The distribution of InFlux revenue to node operators will be as follows:
- 25% to Cumulus nodes
- 33% to Nimbus nodes
- 42% to Stratus nodes
The sum of the application payments made to Inlux will be divided into two categories: 80% will go to all online node operators running ArcaneOS, and the remaining 20% will go to online nodes hosting DApps running ArcaneOS. Legacy nodes won’t receive PNR.
To be eligible for PNR, which will be implemented in Q3 2025, nodes must have over 21,600 blocks confirmed and operating system uptime over one month. The application must also be active for one month for nodes hosting DApps.
The PNR mechanism will be added to the Flux network layer as a core part of the blockchain infrastructure to set parameters for node operations.
The distribution of PNR will dynamically adjust based on node performance metrics. When a Flux Service collects this data and sends the rewards, nodes must be online.
Conclusion
PNR enables dynamic, long-term network scalability and steady, fair compensation for node operators during $FLUX halving cycles. By automatically adjusting incentives based on network demand and node performance, PNR encourages a more decentralized and resilient network.
Continuous Flux community involvement is necessary for the success of PNR. Users can vote on updates and reward distribution adjustments to keep the system efficient.
We can’t wait to enter this next Flux phase with you. For a complete and comprehensive breakdown of PNR, check out the whitepaper, and follow us on X for the most recent updates!
