The PRV you deposit in Node Pool is used to stake new Node Virtuals to power the network. Your earnings come from a percentage of the amount that those Nodes earn. As the number of Incognito validators has been on the rise, taking us further down the 2020 roadmap, the probability of selection has decreased.
This means that Node Pool earnings have changed.
Node Pool now provides a 37% APY on your PRV.
We can expect Node Pool earnings to continue to change, in two ways:
The USD value of PRV changes.
Recently, the value of PRV has been rising. It is sure to both rise and fall, so the effects of these changes should be considered, but not depended on.
Validator earnings change.
As validators increase, the probability of selection will decrease until more slots for validators are opened/created. Conversely, as network usage (transactions, trades) increases, validator earnings increase. It’s a push-and-pull relationship that won’t equalize until the network is at its full capacity, so be prepared to continue to see changes.
While a decrease in returns never feels good, it’s a direct result of a growing network and putting privacy over profit. Node Pool remains a great way for new users to test the waters and get high staking returns. It’s also perfect for validators to deposit their extra earnings to continue growing their returns exponentially.
If you’re not yet using Node Pool and want to start earning 37% on your PRV with no minimum stake and no lockup, check out the Node Pool tutorial to jump in!