# What’s in it for OX-Node Operators?

## Forecasted Network Rewards

Three distinct scenarios offer estimates for OXOA Network rewards achievable through operating an OX-Node. These projections hinge on a set of underlying facts and assumptions regarding the tokens, OX-Nodes, and the network:

1. **Token Limits and Dynamics**: The total supply of $OXOA and $isOXOA combined is capped at 2,500,000,000 tokens. However, due to the dynamic nature of the OXOA ecosystem, accurately predicting the monthly token reward per OX-Key proves challenging.
2. **Gas Utilization and Supply Dynamics**: A notable feature is that 100% of gas is burned within the OXOA ecosystem, indicating that the supply may not always follow an inflationary trajectory; instead, it might experience intermittent periods of deflation.
3. **Foundation Limitations and Price Dynamics**: The OXOA Foundation sets a ceiling of 30,000 OX-Keys to be sold, a process expected to unfold over 2-3 years. Furthermore, the price per OX-Key is anticipated to increase gradually over time, introducing a dynamic element to the network's economic landscape.
4. **Fluctuations in Monthly $isOXOA Rewards**: The monthly quantity of isOXOA per OX-Key is subject to fluctuation, contingent on the number of participants engaging in staking activities within the ecosystem. This variability adds an element of dynamism to the potential rewards associated with OX-Node operation.

These scenarios underscore the intricacies of the OXOA Network's reward system, emphasizing the need for participants to navigate an environment influenced by token dynamics, gas utilization, foundation limitations, and fluctuations in staking participation. Operators should remain adaptable to the evolving landscape to optimize their rewards within this dynamic ecosystem.

**Scenario 1 (estimated)**: In the hypothetical scenario where the total supply of OXOA and isOXOA tokens reaches 750,000,000, the rewards allocated to each OX-Key would align with the following table:

| Global Active OX-Keys | Est.Monthly Token Reward Per Key ($isOXOA) |
| --------------------- | ------------------------------------------ |
| 100                   | 443,004,28                                 |
| 1,000                 | 44,300,43                                  |
| 5,000                 | 8,860.09                                   |
| 10,000                | 4,430.04                                   |
| 25,000                | 1,772.002                                  |

**Scenario 2 (estimated):** In the hypothetical scenario where the total supply of OXOA and isOXOA tokens reaches 1,250,000,000, the rewards assigned to each OX-Key would correspond to the table below:

| Global Active OX-Keys | Est.Monthly Token Reward Per Key ($isOXOA) |
| --------------------- | ------------------------------------------ |
| 100                   | 221,502.14                                 |
| 1,000                 | 22,150.21                                  |
| 5,000                 | 4,430.04                                   |
| 10,000                | 2,215.02                                   |
| 25,000                | 886.01                                     |

| Global Active OX-Keys | Est.Monthly Token Reward Per Key ($isOXOA) |
| --------------------- | ------------------------------------------ |
| 100                   | 221,502.14                                 |
| 1,000                 | 22,150.21                                  |
| 5,000                 | 4,430.04                                   |
| 10,000                | 2,215.02                                   |
| 25,000                | 886.01                                     |

## Forecasted Reward Value

Due to the dynamic nature of OXOA network rewards and the unpredictability of OX-Node adoption rates, it's challenging to establish an exact valuation at any specific moment. The table presented below offers one way to think about an "implied" valuation, but it relies on a few assumptions. The primary assumption is that the number of nodes sharing the entire OX-Node allocation is limited to the cumulative amount up to its respective tier. Bear in mind the sentry node allocation will be emitted over a number of years. On the other hand, the table does not account for the possibility that burning 100% of gas might lead to periods of deflation, potentially increasing network rewards. In reality, the realized valuation could be materially better or worse, so it is advisable to model your own scenarios when considering value.

Given the dynamic nature of OXOA network rewards and the inherent uncertainty surrounding OX-Node adoption rates, pinpointing an exact valuation at any specific moment presents a considerable challenge. The table below offers a perspective on an "implied" valuation, incorporating certain assumptions. The key assumption is that the cumulative number of nodes sharing the entire OX-Node allocation is constrained to the cumulative amount up to its respective tier. It's essential to note that the sentry node allocation will be released gradually over several years.

However, it's crucial to acknowledge that the table does not factor in the potential impact of burning 100% of gas, which might lead to periods of deflation, potentially influencing network rewards. In reality, the realized valuation could deviate significantly, for better or worse. Therefore, it is advisable to undertake thorough scenario modeling when assessing the value, considering various factors and potential fluctuations in the dynamic ecosystem of the OXOA network.

| **Tier** | **ETH Cost** | **Quantity** | **FDV**       |
| -------- | ------------ | ------------ | ------------- |
| Tier 1   | 0.04         | 2,500        | $375,000      |
| Tier 2   | 0.047        | 2,365        | $775,867.     |
| Tier 3   | 0.054        | 2,239        | $1,212,472.5  |
| Tier 4   | 0.062        | 2,122        | $1.689.922,5  |
| Tier 5   | 0.073        | 2,013        | $2,218,335    |
| Tier 6   | 0.085        | 1,912        | $2,803,407    |
| Tier 7   | 0.099        | 1,818        | $3,452,433    |
| Tier 8   | 0.115        | 1,729        | $4,170,832.5  |
| Tier 9   | 0.134        | 1,646        | $4,965,850.5  |
| Tier 10  | 0.155        | 1,569        | $5,846,059.5  |
| Tier 11  | 0.18         | 1,497        | $6,820,606.5  |
| Tier 12  | 0.2          | 1,430        | $7,895,251.5  |
| Tier 13  | 0.24         | 1,368        | $9,081,307.5  |
| Tier 14  | 0.277        | 1,309        | $10,387,035   |
| Tier 15  | 0.318        | 1,254        | $11,822,238   |
| Tier 16  | 0.365        | 1,203        | $13,402,980   |
| Tier 17  | 0.418        | 1,155        | $15,140,677.5 |
| Tier 18  | 0.478        | 1,109        | $17,048,712   |
| Tier 19  | 0.546        | 1,067        | $19,146,967.5 |
| Tier 20  | 0.623        | 1,026        | $21,450,850.5 |
| Tier 21  | 0.712        | 987          | $23,982,505.5 |
| Tier 22  | 0.814        | 951          | $26,768,460   |
| Tier 23  | 0.929        | 916          | $29,833,854   |
| Tier 24  | 1.06         | 884          | $33,213,828   |
| Tier 25  | 1.21         | 854          | $36,942,819   |

**Total OX-Keys:** 30,000 key


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