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Rewards & Halving Schedule

CS Node operators earn a share of every block reward mined on the Cloud Service blockchain. Rewards are automatic — no action required after your node is active.

Block Reward Distribution

Every block mined on Cloud Service produces a reward split across 5 categories: miners and the 4 node tiers. The split is hardcoded in the Cloud Service source code and cannot be changed without a hard fork.

┌─────────────────────────────────────────────────────────────────┐
│               Block Reward Split (Initial: 150 CS)               │
├──────────┬──────────┬──────────────────────────────────────────┤
│  Miners  │   25%    │  37.5 CS  ████████████░░░░░░░░░░░░░░░░░  │
│  PROTON  │    5%    │   7.5 CS  ██░░░░░░░░░░░░░░░░░░░░░░░░░░░  │
│  ELETRON │   10%    │  15.0 CS  ████░░░░░░░░░░░░░░░░░░░░░░░░░  │
│  NEUTRON │   20%    │  30.0 CS  ████████░░░░░░░░░░░░░░░░░░░░░  │
│  FOTON   │   40%    │  60.0 CS  ████████████████░░░░░░░░░░░░░  │
└──────────┴──────────┴──────────────────────────────────────────┘
         Total: 100%  =  150 CS per block

The node tier percentages are defined in src/csnode/csnode.h: PROTON=0.05, ELETRON=0.10, NEUTRON=0.20, FOTON=0.40

How Individual Node Rewards Are Calculated

Each tier's pool is split equally among all active nodes in that tier. Your reward per block depends on how many nodes share your tier.

Your Reward per Block = (Block Reward × Tier %) ÷ Active Nodes in Your Tier

Example with 150 CS block reward and 100 PROTON nodes active:

PROTON pool per block = 150 × 5% = 7.5 CS
Per node             = 7.5 ÷ 100 = 0.075 CS per block

At 720 blocks/day:
Daily income ≈ 0.075 × 720 = 54 CS per PROTON node

Halving Schedule

Cloud Service's emission policy uses a modified halving schedule. The block reward halves normally for the first two periods, then stabilizes permanently at 37.5 CS per block.

Rationale: After 2 halvings, the reward is split across 5 categories. Natural deflation from lost wallets and transaction fees is sufficient without further cuts.

┌──────────────────────────────────────────────────────────────────────┐
│                    Cloud Service Halving Schedule                           │
├──────────┬─────────────────────┬────────────────┬────────────────────┤
│  Period  │  Block Range        │  Block Reward  │  Duration          │
├──────────┼─────────────────────┼────────────────┼────────────────────┤
│  Ramp-up │     0 – 19,999      │  0 → 150 CS    │  ~28 days          │
│  Era 1   │  20,000 – 665,349   │    150 CS      │  ~2.45 years       │
│  Era 2   │ 665,350 – 1,320,699 │     75 CS      │  ~2.49 years       │
│  Era 3+  │    1,320,700+       │    37.5 CS     │  Permanent ∞       │
└──────────┴─────────────────────┴────────────────┴────────────────────┘
Block Reward (CS)
     150 │ ████████████████████████████

      75 │                             ████████████████████████

    37.5 │                                                      ████████ (permanent)

         └─────────────────────────────────────────────────────────────▶ Time
              Era 1 (~2.5y)      Era 2 (~2.5y)       Era 3+ (forever)

Reward Table by Tier and Era

Era 1 — 150 CS per block

TierPool per Block% of BlockReward Share
PROTON7.5 CS5%÷ active PROTON nodes
ELETRON15 CS10%÷ active ELETRON nodes
NEUTRON30 CS20%÷ active NEUTRON nodes
FOTON60 CS40%÷ active FOTON nodes
Miners37.5 CS25%

Era 2 — 75 CS per block

TierPool per Block% of Block
PROTON3.75 CS5%
ELETRON7.5 CS10%
NEUTRON15 CS20%
FOTON30 CS40%
Miners18.75 CS25%

Era 3+ — 37.5 CS per block (permanent)

TierPool per Block% of Block
PROTON1.875 CS5%
ELETRON3.75 CS10%
NEUTRON7.5 CS20%
FOTON15 CS40%
Miners9.375 CS25%

Reward Frequency

CS Nodes receive rewards on a per-block basis, not periodic. Each node in the winning tier receives its share when a block is mined. With a 2-minute block time:

┌─────────────────────────────────────────────────┐
│  Reward Frequency                               │
├─────────────────┬───────────────────────────────┤
│  Per block      │  ~every 2 minutes              │
│  Per hour       │  ~30 blocks                    │
│  Per day        │  ~720 blocks                   │
│  Per month      │  ~21,600 blocks                │
│  Per year       │  ~262,800 blocks               │
└─────────────────┴───────────────────────────────┘

Annual Emission Estimate

The total CS emitted per year through nodes (Era 1):

TierAnnual PoolPer Node (100 nodes)
PROTON1,971,000 CS/year19,710 CS/year
ELETRON3,942,000 CS/year
NEUTRON7,884,000 CS/year
FOTON15,768,000 CS/year

These values assume 720 blocks/day × 365 days = 262,800 blocks/year.

Confirmation Requirements

To maintain active status and receive rewards, your CS Node must submit regular confirmation transactions on-chain:

┌──────────────────────────────────────────────────────────┐
│  Node Confirmation Lifecycle                              │
│                                                          │
│  Activation TX ──→ 100 block confirmation wait           │
│       │                                                  │
│       ▼                                                  │
│  Node Active ───→ Must re-confirm every 160 blocks       │
│                   (FLUXNODE_CONFIRM_UPDATE_EXPIRATION_V3) │
│       │                                                  │
│       ▼                                                  │
│  Min 120 blocks between re-confirms                      │
│  (FLUXNODE_CONFIRM_UPDATE_MIN_HEIGHT_V2)                 │
│                                                          │
│  If node misses confirmation → moved to DoS list         │
│  DoS list removal → after 180 blocks                     │
└──────────────────────────────────────────────────────────┘

The CS Node OS (cs-mage) handles re-confirmation automatically. No manual intervention is needed.

ROI Considerations

Your return depends on several variables that change over time:

FactorEffect
More nodes join your tierReward per node decreases
Nodes leave your tierReward per node increases
Halving occursTotal rewards halve
CS price increasesUSD value of rewards increases
CS Cloud hosting demandAdditional revenue from app hosting

TIP

FOTON captures the largest share of every block (40%) but also requires the highest collateral (500,000 CS). The optimal tier depends on your hardware budget vs. collateral budget.


Next Steps

Released under the MIT License.