What is Node Sales?
Node sales represent a new method of token issuance that benefits multiple parties. Projects require a large number of nodes to establish a decentralized network. For project teams, node sales provide a new financing method. Retail investors benefit because many current projects launch with high valuations by institutions, making profits in the secondary market challenging. By participating in node sales, investors can invest in the project before its official launch.
What is a Cryptocurrency Node?
A cryptocurrency node is a computer that interacts with and forms part of a blockchain network. On most blockchains, each node is an individual computer storing all the information on the blockchain (i.e., the distributed ledger). Each node has a copy of the same information, allowing them to verify each other.
Nodes verify and record new transactions, broadcasting them to the network without needing a centralized entity. The more nodes in a cryptocurrency network, the harder it is to deceive the entire system. It would typically need to control more than 51% of the nodes to tamper with the blockchain. On mainstream networks, controlling such a large number of nodes is nearly impossible.
What Functions Do Cryptocurrency Nodes Have?
First and foremost, cryptocurrency nodes store the data necessary for the blockchain to operate, including the entire distributed ledger and all its transactions. Additionally, cryptocurrency nodes communicate with each other, ensuring consensus by maintaining identical copies of the blockchain. This synchronization keeps the blockchain consistent across all nodes.
Moreover, some cryptocurrency nodes perform tasks such as validating blockchain transactions and rejecting invalid ones. They also provide new nodes joining the network with a copy of the blockchain.
Through these combined functions, cryptocurrency nodes validate and record transactions without relying on a centralized entity. Unlike traditional finance, public blockchains depend on the collective power of individuals worldwide running nodes.
Node Sales Project
Aethir: A decentralized computing power platform focused on building scalable, decentralized cloud infrastructure (DCI) to address market fragmentation issues.
Sophon: An entertainment-centric ecosystem utilizing zkSync’s hyperchain technology as a modular rollup, designed for high-throughput applications such as AI and gaming.
CARV: Aims to establish the largest modular data layer providing data services for GameFi and AI, transforming data usage and sharing by ensuring privacy, ownership, and control remain with individuals, creating a future where data generates value for everyone.
Node Token Total Supply
CARV: 1 billion tokens, with 25% allocated for node rewards.
Aethir: 42 billion tokens, with 15% allocated for node rewards.
Sophon: Total supply not yet announced, with 20% allocated for node rewards.
Xai: 2.5 billion tokens, with 42.09% allocated for DAC and node rewards. Although Xai’s 42.09% is for both DAC and nodes, it still offers substantial rewards for nodes. Among recent node sale projects, CARV provides the highest total token rewards for nodes.
First-Year Node Token Release
The first year of node token release is crucial. The market is expected to be bullish, making the tokens more valuable. Subsequently, the market might enter a bearish phase, and with the ongoing release of tokens, combined with institutional and team unlocks, a tenfold price drop is not uncommon. Therefore, it is important to focus on the number of tokens that can be mined within the first year.
Node Token Redemption Period
After mining, the tokens are not immediately available. They need to be converted into tradeable tokens on exchanges, with a specific redemption period.
Other Token Unlocks in the First Year
Besides node rewards, other token unlocks should be considered as they can increase the inflation rate. In token distribution, apart from node mining, tokens are usually divided into three parts. One part is for project needs, such as market-making and operational activities, often released in large quantities during TGE and requiring little attention. The second part is for ecosystem rewards, community, and foundation use, often requiring DAO votes due to the project’s long-term development. The third part is for institutional and team unlocks, which require special consideration.
Node sales, as a new method of token issuance, provide a novel interaction model for both project teams and investors. By supporting the early development of projects, investors can potentially gain high returns while promoting the decentralization and security of blockchain networks. Project teams can raise funds through node sales, driving the project’s growth and expansion. As investors, it is crucial to carefully understand the project’s token distribution and sales model.
About CipherBC
CipherBC stands as a market leader in digital asset custody and payment solutions. Catering to businesses seeking a secure and efficient transition to Web3 transformation, ensuring the security of assets and We are committed to the mission of “ fostering financial freedom.” In line with this objective, we provide asset owners with a complete range of services, encompassing asset custody, merchant payments, clearing and other financial services.