Node Emissions
Understanding Node Rewards and Incentives
At Alpha Dune Network, we are committed to creating a fair, scalable, and sustainable incentive system for Sentinel Node Operators.
To support this vision, we’ve allocated 10% of the total DUNE supply, or 5 billion DUNE tokens, for node emissions.
These tokens will be distributed over a 40-month period, with rewards vested on a linear schedule.
Total Node Licenses
We have a cap of 10,000 Sentinel Node Licenses available for purchase, each linked to an individual node. This ensures that the total number of nodes is limited, making each license a valuable asset to the network.
Maximum Allocation per License
For each Sentinel Node License, we have allocated a maximum of 500,000 DUNE tokens over the 40-month vesting period.
This amount is divided evenly and distributed on a daily basis, ensuring a consistent reward for active node operators.
Linear Vesting Schedule
The 5 billion DUNE tokens allocated for node emissions will be vested over 40 months, with a linear vesting schedule.
This means that rewards will be distributed consistently over the entire period, with a daily amount available for distribution based on the total number of Active Licenses.
Allocation Split: Base + Performance
Each Sentinel Node License has a maximum allocation of 500,000 DUNE tokens that is split in two pools:
Base Rewards
250,000 DUNE
License is active (enabled)
Performance Rewards
250,000 DUNE
Node is operating (online)
Key Rules
Every active license earns at least 250,000 DUNE (base rewards) over 40 months, even if the node never runs.
Performance rewards (250,000 DUNE per license) are only paid to nodes that are online and validating.
If a node is inactive, its performance rewards (for the inactive period) are fully redistributed between all other operating nodes.
Operating nodes earn their full 500,000 DUNE + extra from non-operating active nodes.
Monthly Distribution Example
Since vesting happens over 40 months, we can calculate rewards monthly to have a better understanding on how the incentive system works:
1. Base Rewards (Guaranteed for All Active Licenses)
Total base allocation per license: 250,000 DUNE
Monthly base reward per license: 250,000 DUNE / 40 Months = 6,250 DUNE per Month
Paid to all active licenses, whether operating or not.
2. Performance Rewards (Only for Operating Nodes)
Total performance allocation per license: 250,000 DUNE
Monthly performance reward per license: 250,000 DUNE / 40 Months = 6,250 DUNE per Month
Only paid to actively running nodes.
If the node is not operating, its 6,250 DUNE/month is split among all other operating nodes.
Example Scenario: Monthly Operation
Total Licenses: 1,000 (active)
Operating Nodes: 100 (online and validating)
Operating Rate: 10%
Base Rewards
6.250 DUNE (every active license)
6,250 DUNE
Performance Rewards
6,250 DUNE (if operating)
6,250 DUNE
Redistributed Rewards
900 not operating × 6,250 DUNE ÷ 100 operators
+56,250 DUNE
Total Monthly Earnings
6,250 (base) + 6,250 (performance) + 56,250 (redistributed)
68,750 DUNE
Key Takeaways
Fairness – All license holders get at least 250,000 DUNE, even if their node is offline.
Performance Incentives – Operating nodes can earn up to 11x more (68,750 DUNE vs. 6,250 DUNE).
Network Security – More online nodes = stronger network.
Sustainable – Linear vesting prevents inflation.
Why This Incentive Structure?
This approach helps us achieve several key objectives:
Maximizing Network Security: By rewarding active node operators with a share of the inactive node rewards, we incentivize operators to keep their nodes running, directly contributing to the overall security and integrity of the Alpha Dune Network.
Encouraging Participation: Even if a node operator has purchased a license but is not yet running the node, they can still be motivated to bring it online and start participating to earn their full share of rewards.
Sustainable Ecosystem: The vesting schedule ensures that rewards are distributed steadily over time, preventing large-scale inflation of tokens while promoting long-term commitment from node operators.
What Happens If I Buy A Node After Token Listing?
When you purchase a Sentinel Node license after the DUNE Token has started trading on different exchanges, the rewards for your node will begin to accumulate as soon as you activate your node.
Here’s what you need to know:
Reward Allocation Begins Upon Activation Once you activate your node, the rewards reserved for your license will start to be distributed to you. The full reward potential of 500,000 DUNE tokens is reserved for each node license, and you will receive a proportional amount of rewards based on the amount of time your node is active.
Max Allocation Reserved The maximum possible reward for each license, which is 500,000 DUNE tokens over 40 months, is reserved for every purchased node license. This means that even if you purchase a node license later in the vesting period, you will still receive the full allocation, starting from the moment your node becomes active.
Earnings from Non-Operating Nodes As soon as your node is activated and starts participating in securing the network, you will also begin to earn rewards from non-operating licenses. These rewards are redistributed from licenses that are purchased but do not operate. The longer your node operates, the more rewards you will earn, including the allocation from nodes that aren’t operating.
In summary, after purchasing your node, as soon as you activate it, you will start earning rewards from both your allocated node and any redistributed rewards from non-operating active nodes, helping to maximize your earnings while contributing to the network’s security.
What Happens With Unsold Licenses?
Alpha Dune Network has a cap of 10,000 Sentinel Node Licenses. If some licenses remain unsold by the end of the campaign:
Unsold licenses will be burned.
Allocated rewards for those licenses will be redistributed to the Ecosystem Growth Pool, supporting the continued growth of the network.
Conclusion
Node emissions in the Alpha Dune Network are designed to create a sustainable, secure, and rewarding environment for Sentinel Node Operators.
By rewarding active participation and encouraging the operationalization of as many nodes as possible, we aim to create a decentralized ecosystem where security, transparency, and integrity are prioritized.
The linear vesting, coupled with the dynamic reward distribution system, ensures fairness while incentivizing the growth of the network.
Ready to operate your Sentinel Node? Get your license and start contributing to the future of decentralized networks today.
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