---
title: Node Provider Remuneration
slug: node-provider-remuneration
description: How node providers are paid — the minting cadence, the XDR conversion, and the reward tables for each hardware generation and geography.
tags:
  - node-provider
  - rewards
  - remuneration
  - economics
  - governance
date: 2026-05-04
related:
  - node-provider-documentation
  - reward-configuration
  - proof-of-useful-work
---

Node providers are paid for operating node machines on the Internet
Computer. Reward rates are set by the Network Nervous System (NNS) and
can only be changed by NNS proposal adopted by the community. This
entry summarises the current rates, the formula behind the Gen-2 model,
and the variants that apply to earlier hardware.

## Minting cadence and currency

The NNS mints node provider rewards every **2,629,700 seconds**
(one-twelfth of a year). The current and next minting dates are
published at
[next-rewards-gnj.caffeine.xyz](https://next-rewards-gnj.caffeine.xyz/).

Rewards are denominated in **XDR** (Special Drawing Rights, the
international reserve asset issued by the IMF) and converted to ICP at
the [30-day moving average](/wiki/thirty-day-moving-average/) ICP/XDR
price at minting time. The conversion rate is tracked on the
[Internet Computer dashboard](https://dashboard.internetcomputer.org/)
under the Network Overview ’s “Conversion Rate”
chart. Converted ICP is transferred to the principal that the provider
registered during onboarding.

## What rewards depend on

Three factors set the rate paid for any given node:

- **Hardware generation** — gen-1 or gen-2.
- **Geographic location** — capital and operating costs differ;
  underserved regions are weighted more.
- **The provider’s total node count** — later nodes are
  rewarded less, to discourage concentration of ownership.

| Hardware | Remuneration model |
|---|---|
| Gen-1 | Gen-1 type-0 |
| Gen-1 + storage upgrade | Gen-1 type-1 |
| Gen-2 | V2 / V2.2 Gen-2 remuneration |
| Gen-3 | V3: Gen-3 remuneration |

A future model is expected to combine fixed rewards with automated
incentives and penalties tied to node performance.

## Initial Gen-1 model — type-0

Nodes purchased before genesis are gen-1, and all of them began on
type-0:

| Region | Reward per month (XDR) |
|---|---|
| USA | 873 |
| US — FL/GA/CA | 1,087 |
| EU | 1,087 |
| Asia | 1,212 |

## Type-1 — the storage-upgrade rate

Soon after genesis the storage capacity of all gen-1 nodes was
increased to support larger subnet states. Type-1 rates fold in the
extra hardware cost and the country-by-country shipping and
installation costs that providers absorbed.

| Region | Total reward per node (XDR) |
|---|---|
| US — FL/GA/CA | 1,600 |
| US — other | 1,499 |
| Canada | 1,624 |
| Slovenia | 1,720 |
| Switzerland | 1,696 |
| EU — other | 1,584 |
| Singapore | 1,842 |
| Japan | 1,773 |

## Gen-1.1 — after the original 48 months

Gen-1 servers continuing to run beyond their initial 48-month
agreements are paid under the **Gen-1.1** schedule, adopted via NNS
[motion proposal #132553](https://dashboard.internetcomputer.org/proposal/132553)
(forum discussion
[here](https://forum.dfinity.org/t/proposal-update-interim-gen-1-node-provider-remuneration-after-48-months/35001)).
Rewards are fixed and lower than type-1; a maximum of 42 nodes per
provider applies; the model is expected to remain in force for roughly
24 months.

A subsequent
[motion proposal #135253](https://dashboard.internetcomputer.org/proposal/135253)
(forum [thread](https://forum.dfinity.org/t/proposal-update-interim-gen-1-node-provider-remuneration-after-48-months/35001/208))
added a 10% bonus on top of the highest Gen-1.1 rate for providers who
relocate their nodes to a non-EU member state.

| Region | Reward per node per month (XDR) |
|---|---|
| US — FL/GA/CA | 1,072 |
| US — other | 1,004 |
| Canada | 1,088 |
| Slovenia | 1,152 |
| Switzerland | 1,136 |
| EU — other | 1,061 |
| Singapore | 1,234 |
| Japan | 1,188 |
| Non-EU (relocation) | 1,357 |

Under the same proposal:

- Excess nodes may be sold to another provider while staying in the
  same data center.
- Excess nodes may be sold to an optimal provider and moved to a new
  country and data center.
- No provider may exceed 42 nodes.

The receiving-provider procedure is documented under
[Steps for Gen-1 onboarding after 48 months](/wiki/gen-1-onboarding-after-48-months/).

## Gen-2 model

The gen-2 schedule is built on two principles:

- **Higher rewards for the first nodes of a new provider**, to attract
  ownership decentralization.
- **Higher rewards in underserved geographies** — South America,
  Africa, parts of Asia, Australia — to drive geographic
  decentralization.

The model is parameterised by:

- A **geography multiplier** `mult(g)`. 2 for established regions
  (Europe, North America); 3 for regions with limited current presence
  (Africa, South America).
- A **reduction coefficient** `r(np, g)`. The n-th node of a provider
  is rewarded with the base amount multiplied by `r ^ (n-1)`. The
  coefficient is geography-dependent.

For a geography `g`, let `cost(g)` be the four-year total of capital
and operating expense, in XDR. The monthly reward for the n-th node of
provider `np` in geography `g` is:

```
reward(g, n) = cost(g) * mult(g) * r(np, g) ^ (n-1) / (4 * 12)
```

If a provider has nodes of more than one type or geography within a
single country, the NNS sums the country’s total node count and
applies the per-type rate to each.

The reduction coefficient `r(np, g)` is applied **per (provider,
country) pair**: two providers in the same country each start at the
1st-node multiplier of 1 and are reduced independently as they add
nodes.

### Version 2 base rates

| Geography | 4-year cost (XDR) | Multiplier | 1st-node reward (XDR) | Reduction r |
|---|---|---|---|---|
| USA | 31,034 | 2 | 1,294 | 0.7 |
| US — FL/GA/CA | 37,031 | 2 | 1,542 | 0.7 |
| EU | 36,996 | 2 | 1,542 | 0.95 |
| Asia — Singapore/Japan | 40,508 | 2 | 1,688 | 0.7 |
| Asia — non-Singapore | 40,508 | 3 | 2,532 | 0.98 |
| South Africa | 43,986 | 3 | 2,748 | 0.98 |

### Worked example — first ten nodes in South Africa

```
reward(south africa, n)
  = cost(south africa) * mult(south africa) * r(south africa) ^ (n-1) / (4 * 12)
  = (21,455 + 22,531) * 3 * 0.98 ^ (n-1) / (4 * 12)
  = 2748 * 0.98 ^ (n-1)
```

| N-th node | Multiplier (rounded) | Monthly reward (XDR, rounded) |
|---|---|---|
| 1 | 1 | 2,748 |
| 2 | 0.98 | 2,693 |
| 3 | 0.96040 | 2,639 |
| 4 | 0.941192 | 2,586 |
| 5 | 0.92236816 | 2,534 |
| 6 | 0.9039207968 | 2,483 |
| 7 | 0.885842309 | 2,434 |
| 8 | 0.8681255332 | 2,385 |
| 9 | 0.8507630226 | 2,337 |
| 10 | 0.8337477621 | 2,291 |

In the original gen-2 analysis, additional nodes only generate
positive incremental cash flow up to a region-dependent ceiling
— roughly 15 nodes in Europe, only 2 in the US. New providers
should run their own internal-rate-of-return and payback calculations
against their own capex and opex; the published rates are based on
estimates and real costs vary with vendor and data-center contracts.

### Version 2.1 — current model from May 2023

Adopted after the discussion in [this forum
thread](https://forum.dfinity.org/t/the-state-and-direction-of-decentralization-nodes-on-the-internet-computer/9170/192),
Version 2.1 supersedes Version 2 with these changes:

- The generic **Asia** entry is removed; specific countries are listed
  individually.
- **Hong Kong** and **India** are added.
- The multiplier is set to **2 for all countries**. A future proposal
  may differentiate countries by risk premium.
- A **per-country cap of 50 nodes** applies to new-country entries.
  Once reached, the reduction coefficient is tightened so only one or
  two further nodes can be added — the same dynamic as already
  applies in the US and Switzerland.

> [!NOTE]
> As of the V2.1 update, network capacity is sufficient for the
> current canister load and for decentralization measured by the
> Nakamoto coefficient; no new country entries are being added. Any
> further changes will follow the IC Topology Roadmap discussion on
> the developer forum and a subsequent NNS proposal.

| Geography | 4-year cost (XDR) | Multiplier | 1st-node reward (XDR) | Reduction r |
|---|---|---|---|---|
| US | 31,034 | 2 | 1,294 | 0.7 |
| US California | 37,031 | 2 | 1,543 | 0.7 |
| Canada | 37,031 | 2 | 1,543 | 0.7 |
| Germany | 36,996 | 2 | 1,542 | 0.7 |
| Switzerland | 36,996 | 2 | 1,542 | 0.7 |
| France | 36,996 | 2 | 1,542 | 0.7 |
| Belgium | 36,996 | 2 | 1,542 | 0.7 |
| Slovenia | 36,996 | 2 | 1,542 | 0.7 |
| Europe (other) | 36,996 | 2 | 1,542 | 0.95 |
| Israel | 49,500 | 2 | 2,063 | 0.95 |
| Japan | 40,508 | 2 | 1,688 | 0.7 |
| Singapore | 40,508 | 2 | 1,688 | 0.7 |
| Hong Kong | 46,141 | 2 | 1,922 | 0.95 |
| India | 50,377 | 2 | 2,100 | 0.95 |
| South Korea | 51,774 | 2 | 2,158 | 0.95 |
| Sri Lanka | 52,800 | 2 | 2,200 | 0.95 |
| Georgia | 57,455 | 2 | 2,394 | 0.95 |
| South Africa | 55,455 | 2 | 2,310 | 0.95 |
| Australia | 47,000 | 2 | 1,958 | 0.95 |
| New Zealand | 47,000 | 2 | 1,958 | 0.95 |
| Panama | 51,774 | 2 | 2,158 | 0.95 |
| Costa Rica | 51,774 | 2 | 2,158 | 0.95 |
| Colombia | 57,455 | 2 | 2,394 | 0.95 |
| Argentina (proposed) | 57,455 | 2 | 2,394 | 0.95 |

## Reward calculator

A community-maintained calculator is available at
[calconic.com](https://www.calconic.com/calculator-widgets/ic-node-provider-rewards/659d42a6d96fa70029e56629?layouts=true).

## Trustworthy Node Metrics

Trustworthy Node Metrics were introduced in February 2024 to give the
community visibility into node performance, stability, and reliability.
The metrics may be used to influence reward calculations in future
schedules.

- Forum discussion:
  [forum.dfinity.org/t/trustworthy-node-metrics-for-useful-work/22989](https://forum.dfinity.org/t/trustworthy-node-metrics-for-useful-work/22989)
- Background:
  [Don’t trust, verify](https://medium.com/dfinity/dont-trust-verify-new-node-metrics-on-the-internet-computer-367cc154a572)
- Technical reference:
  [dfinity.github.io/dre/trustworthy-metrics/](https://dfinity.github.io/dre/trustworthy-metrics/trustworthy-metrics.html)

## Performance-based rewards

[Performance-based Rewards](/wiki/performance-based-rewards/) (PBR)
extend the schedule with incentives for keeping nodes healthy,
addressing hardware and connectivity issues, and proactively
reporting problems within the IC-OS stack. PBR scales each node's
monthly reward by a multiplier between 0.2 and 1.0, derived from
its block-maker failure rate relative to its subnet's 75th-percentile
baseline.

## Related

- [Node Provider Documentation](/wiki/node-provider-documentation/) — the index for the role.
- [Reward Configuration Guide](/wiki/reward-configuration/) — how to register a node for rewards once it is online.
- [Proof of Useful Work](/wiki/proof-of-useful-work/) — the model that frames *why* node providers are paid.
- [Steps for Gen-1 onboarding after 48 months](/wiki/gen-1-onboarding-after-48-months/) — receiving-provider procedure for Gen-1.1 transfers.