--- title: Performance-based Rewards slug: performance-based-rewards description: How the Performance-based Rewards (PBR) v1 schedule scales monthly node rewards according to block-maker failure rates relative to subnet baseline. tags: - node-provider - rewards - economics - governance date: 2026-05-04 related: - node-provider-remuneration - node-provider-documentation - proof-of-useful-work - reward-configuration --- Node providers were originally paid a flat monthly rate per machine regardless of how the node performed. **Performance-based Rewards (PBR)** changes that. PBR scales each node's monthly reward by a multiplier derived from the [Trustworthy Node Metrics](/wiki/node-provider-remuneration/#trustworthy-node-metrics) — specifically, its block-maker failure rate relative to the rest of its subnet. Healthy nodes are paid the full baseline; nodes that fall materially behind are paid less, with the penalty capped. This entry summarises how the v1 schedule works, how unassigned nodes are handled, and how a provider can pull their own performance data using the open-source `dre` tool. For the rate cards themselves, see [Node Provider Remuneration](/wiki/node-provider-remuneration/). ## How v1 works PBR treats the existing per-node rate as the **baseline maximum** — the most a node can earn in a month, before any performance adjustment. The actual monthly reward is the baseline times a **performance multiplier** in the range `[0.2, 1.0]`. The headline curve: - **Up to 10% relative failure rate — no penalty.** Multiplier is 1.0. The node is paid the full baseline. - **Between 10% and 60% relative failure rate — linear reduction.** The penalty grows from 0% at 10% to 80% at 60%. - **Above 60% — capped.** The multiplier never falls below 0.2; a node always earns at least 20% of its baseline. ## Block-maker failure rate Every node in a subnet is given equal opportunity to propose blocks. A node that is unreachable, low on CPU, low on RAM, or starved on disk I/O fails to produce blocks when its slot comes up. The NNS collects this data per node. ``` Node Failure Rate = Failed Blocks / (Proposed Blocks + Failed Blocks) ``` ## Subnet baseline Subnets vary — an entire subnet can run hot during a state-sync or under heavy traffic. PBR normalises by subtracting the subnet's own baseline from each node's failure rate. The baseline is the **75th-percentile** failure rate across nodes in that subnet, i.e. the rate at the edge of the slowest 25%. ``` Relative Performance = max(0, Node Failure Rate - Subnet Performance) ``` ## Performance multiplier The multiplier is a piecewise function of `Relative Performance`: ``` If Relative Performance < 10%: Multiplier = 1.0 Else if Relative Performance >= 60%: Multiplier = 0.2 Else: Multiplier = 1.0 - ((Relative Performance - 10%) / 50%) * 80% ``` ### Worked example A node has `Relative Performance = 16.66%`. ``` Penalty = ((16.66% - 10%) / 50%) * 80% = 10.66% Multiplier = 100% - 10.66% = 89.34% ``` The node earns 89.34% of its baseline reward for the month. ## Unassigned nodes A node not currently assigned to a subnet has no opportunity to propose blocks, so it has no failure rate of its own. PBR pays unassigned nodes at the **average performance multiplier of their provider's assigned nodes**. A provider whose assigned fleet is healthy is paid in full for their unassigned nodes; a provider whose assigned fleet is degraded is paid less for both. ## Pulling your own performance data The `dre` command-line tool, maintained by DFINITY, surfaces PBR data per provider. It is open source and packaged for Linux and macOS: [github.com/dfinity/dre/releases](https://github.com/dfinity/dre/releases). Upgrade an existing install with: ```bash dre upgrade ``` ### Current rewards ```bash dre node-rewards ongoing ``` Prints the current projected monthly rewards versus baseline and identifies which of your nodes are currently underperforming. ### Past rewards ```bash dre node-rewards past-rewards YYYY-MM ``` Prints the daily breakdown for a past month. ### CSV export ```bash dre node-rewards --csv-detailed-output-path ./pbr-data ``` Generates several CSV files in the target directory: - `rewards_summary` — daily total rewards plus the IDs of any underperforming nodes that day. - `base_rewards` — daily breakdown by node type and region. - One file per node — daily failure rate, multiplier, and adjusted reward. ## Investigating a penalty When a node has been penalised: 1. Pull the CSV bundle for your node provider principal. 2. Open `rewards_summary` and identify the dates and nodes flagged. 3. Open the per-node CSV for each flagged node and read off the failure rate, the subnet baseline that day, and the resulting multiplier. 4. Cross-reference against [Node Provider Troubleshooting](/wiki/node-provider-troubleshooting/) for the likely physical causes — networking, storage, power. ## Related - [Node Provider Remuneration](/wiki/node-provider-remuneration/) — the rate cards PBR scales. - [Proof of Useful Work](/wiki/proof-of-useful-work/) — the framing model PBR implements. - [Reward Configuration Guide](/wiki/reward-configuration/) — required so a node earns rewards in the first place. - [Thirty-Day Moving Average](/wiki/thirty-day-moving-average/) — how XDR rewards are converted to ICP at minting time.