Incentivizing the growth and utility of the network
The Nodle decentralized wireless network’s main objective is to be as broad, dense, and active as possible. The Nodle network is composed of nodes, running on users’ smartphones as SDKs and the Cash app. The NODL cash reward system was created to align with the mission of the network. Therefore, the incentives need to reward network expansion and the overall value of the data that is brought into the network ecosystem.
The original Nodle white paper (1), defined a reward system based on volume and type of data:
“The Nodle Cash reward (the ‘Reward’) will be a function of the volume and type of data packets sent, the density of the Nodle Network, latency of transmitted data, and a difficulty coefficient. The reward formula will evolve with the network.”
The Nodle network has grown significantly and is now being used for tracking assets, primarily through iBeacons. So after two years of operations, the reward formula needs to be updated so it is more closely aligned with the mission of the network.
The demand side of the marketplace needs to have the largest geographic coverage with the highest availability of nodes while operating in an on-demand fashion. For instance, customers of the asset tracking service want to:
- securely register the assets they want to track;
- get the locations of those assets in real-time;
- receive the locations securely and off-chain, on a dedicated platform they own; and
- pay for the asset tracking on a per-device basis.
To align the incentives of the supply side (the “nodes”) with the demand side, the Nodle team is working on an updated reward system, which will be described in detail in a new version of the white paper to be released in 2022, alongside an updated Nodle network. This update will focus on an incentive mechanism to maximize the coverage, availability, and utility of the network.
In the meantime, the reward system is being upgraded from a function of volume and type of data to one of availability of nodes and quality of data. This should positively impact users of the Nodle Cash app who are actively participating in the network, while negatively impacting actors who are collocating smartphones with the Nodle cash app and sending identical data.
The reward formula will be updated on a regular basis to continuously align the incentives of the parties with the new capabilities of the network. We anticipate that, at some point in the future when the network is fully decentralized, management of the reward formula will shift to the community.
About Nodle:
Nodle is a decentralized wireless network providing secure, low-cost connectivity, and data liquidity to connect billions of devices worldwide. The Nodle network is powered by millions of Bluetooth-enabled smartphones that earn Nodle Cash (NODL). Nodle’s powerful stack allows multiple uses including connecting and securing physical assets, tracking lost or valuable items, capturing sensor data, and authenticating security certificates. Nodle provides insights for consumer electronics manufacturers, enterprises, smart cities, the finance industry and more. Since its creation in 2017, Nodle has become one of the world’s largest wireless networks by the number of base stations. Join #TheCitizenNetwork by downloading the Nodle Cash app is available for iOS or Android.
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Nodle Reward System Update was originally published in Nodle on Medium, where people are continuing the conversation by highlighting and responding to this story.
