How does PRV generate money to pay staking?

Hi,
I just don’t see it, I am new to this but I’m trying to see how PRV could pay 1200 vnodes 120% investment return. The fees for trading are .00000005 PRV and to support something like this would take millions/billions of transactions a day. Also the total market cap is around $4,000,000.

Could someone tell me how they are paying out or how I am wrong?

From what I understand:

-stakers receive a portion of the mining rewards from pnodes that are in the System.

-stakers receive a portion of the 65% of mining fees that are generated through pnodes that are mining

When people buy a pnode, they don’t have to put up the 1750 prv required to mine, so that amount is provided to them.

The pnode owner gets 35% of their mining rewards and a pool of prv used to supplement the 1750 stake gets the rest

The team has most of the committee slots that are generating mining rewards, so I assume some of this is paid out to stakers also.

But the team can correct me if I’m wrong about any of this.

We are discussing a new tx fee model that will allow miners to get more sustainable tx income over time here:

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Hey @palumboe1 If you want to dive deeper in tokenomic, strongly suggest you go dive into these two publications:

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In fact, you are asking “mining” :slight_smile: Nobody pays something to us (vNode&pNode owners). We secure/run the Incognito network. Without us, the transactions, pDEX etc. do not work. Since we have some expense (VPS, electricity, labor etc.) to perform these tasks, the network (not the team) pays the block rewards to us. The block rewards will be reduced by %10 every year. This will goes on for 40 years. When the total supply will be 100million PRV, the block rewards will stop. Then, we will try to earn money from just transaction fees (some other fees may be added, 40 years are so long, not easy to foresee :slight_smile: )

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I understand how nodes work but I’m trying to understand how there paying out the prv, not just creating new prv and bringing down the value.

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So essentially new prv is just being given out, not from the fees that are generated

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How does PRV generate money to pay staking?

I believe the PRV staking pool (aka Node Pool) is providing funds to new pNodes. Everytime a pNode earns, the block reward is split 35% to the owner (worker) and 65% to staking pool (funder). Obviously not all funded pNodes received their funded stake from Node Pool, as it’s only been around a few weeks and pNodes have been around longer. But I believe that is the source of the earned PRV for Node Pool stakers.

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The basics of any blockchain are, store validated information in an unmutable, decentralized way.

The validation is done by code run by miners, validators, witnesses. Different blockchains have different names for their validators.

To reward those validators for running the code, with each validated block that is added to the chain some coins of that blockchain are generated. Each blockchain has its own math in place to distribute these generated coins to the ones involved.

Incognito is not paying the PRV, the code is generating and distributing it.

If you were to Google “how does a blockchain create coins” you will most likely find an animated version of how things work.

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