How and why Evernode incentivizes host setup

[wojake]

Evernode incentivizes host setup by issuing and distributing $EVR to participating and reliable hosts at a fixed rate. The reward rate for eligible hosts at the time of Evernode's public launch on the mainnet (Epoch 4) will begin at 64 Evers per Moment (~6 minutes), and the reward rate will halve every epoch in order to benefit early adopters.

The reward distribution scheme is structured to favor early adopters as it will help bootstrap Evernode with reliable host operators since each new host is relatively more valuable to the network when the network is young and small. It is crucial to have reliable participating nodes at the platform's inception so that smart contract developers can have a broad choice of nodes for smart contract deployment.

Auditors will regularly perform QoS audits to verify whether an Evernode Host is sufficient enough to earn hosting rewards. Newly minted $EVR will be shared equally between all participating and reliable hosts. Evernode discourages "token farmers" (unreliable nodes that just want the hosting rewards) by not rewarding them at all. Smart contract developers will most likely not choose a suspected "token farming" host based on its service's resources and history. We discourage any token farming behavior as it provides no value to the platform.

Edited February 16, 2022 by wojake