We put our money where our mouth is when it comes to rewarding good providers and compensating fairly
For any distributed system to work in practice, there needs to be what’s called an ‘aligning of incentives.’ This means on a network like ScPrime, everyone (storage providers, renters, block miners, and others) benefits the most by playing nicely, with no one rewarded by cheating or not making good on commitments. Our philosophy is that rather than punishing behaviours that impacts the network in a negative way, we want to make it most rewarding for those who bring positive influences.
The foremost example of this is the Xa-Miner rebate program, which comes in the form of the rebates for the Xa-Miner hardware, and rebates for Xa-Miner software licenses. Common to both these programs is the desire to reward providers who have risen to the challenge and bring good uptimes and healthy configs, especially during the first year of use where earnings are still building up.
On the Xa-Miner hardware purchases, the rebates total to a percentage of the unit price depending on the model of miner and batch: before October 31 get 37.5% on the 16 TB model, 40% on the limited-time 40 TB model, and 42.5% on the 64 TB option. After October 31, all models have a 25% rebate. Rebates are sent via SCP token to the wallet on the Xa-Miner device, the value of which is calculated using a short-term averaged token price. All of these rebates are issued in four segments: rebate one (R1) is issued immediately after successful registration and has no conditions beyond the miner becoming online and working. This immediate rebate also serves the dual purpose of providing enough SCP to cover initial collateral commitments, allowing you to start earning with storage contracts.
Update – All SCP-based Rebates were ended on Xa-Miners in 2022. Units purchased before the end of year can still receive full rebates as originally promised even if the unit is just now being powered up and made active
|Dec 2021 – May 2022
|Percentage of Total Rebate
|June 2022 – Oct 31 2022
R2 after 6 months, R3 after 9 months, and R4 after 12 months involve a check to make sure your uptime meets our ask of 95%. Specifically, each uptime period is handled independently from the one before it, meaning even if you were to miss one rebate (say, R2, a 6 month period) you would still be able to earn the remaining portions by maintaining the uptime ask for the 3 months of R3 and 3 months of R4. The values of the rebates themselves are rear-biased, providing the largest reward for the longest time in service. R1 corresponds to 10% of the rebated amount, R2 to 20%, R3 to 30%, and R4 to 40%. These components sum to 100% of the rebated amount.
“Batch One” Xa-Miners, sold from mid-December 2021 to May 2022 received their R2 rebate immediately upon activation as gratitude for the wait period, and protection for users against an at-the-time increasing coin price, resulting in an expectation to receive fewer coins at the 6 month mark.
Xa-Miner software licenses also receive rebates: 100% rebate on the basic ($99) license, and a 55% rebate on the full license (final cost $199). Both receive two equal installments, R1 at 6 months, R2 at 12 months, also with a 95% uptime ask. The uptime period methodology discussed earlier applies to these rebates as well.
While providers are free to do with their rebates whatever they choose, we encourage consideration to hold on to the rebated coins. It is likely that a healthy supply of coins will need to remain in the provider wallets to cover collateral and renew commitments in years two, three, and beyond, as well as consideration that should the network grow as expected there is likely to be considerable appreciation for the value of the rebated coins. Of course, the decision is ultimately up to the user, but we feel our approach of most rewarding those who leave a positive impact will track as an example of healthy and compelling network growth.
Update – All SCP-Based Rebates have ended on Licenses. Nodes purchased before the end of 2022 may still qualify if never set up previously