Reward Details for Fizz Nodes

To understand the rewarding system for Fizz nodes, let's first understand how reward emission works in the Spheron Protocol.

Reward Emission

Fizz nodes are incentivized with liveness points based on the resources they contribute to the network. This approach encourages participation and helps cover operational expenses (OpEx).

• The liveness points are currently issued in FN (Fizz Node) Points until the launch of the $SPHN token. These points are non-transferable.
• The liveness point is issued every ERA (which is 24 hours) and will be accumulated in the Fizz node's wallet.

Liveness points are determined based on the following factors:

Resource Rewards

Fizz earns points based on the GPU and compute resources it provides to the network. The higher the quality of the resource, the better the reward multiplier. Different resource categories will be introduced, each with different base points and multipliers based on tiering (e.g., CPU tiering). Currently, only GPU tiering with 10 tiers has been introduced.

How are resource points calculated?

Let's say you have x units of GPU A, which falls in Medium Tier 1 with a multiplier of 1x, and y units of GPU B, which falls in High Tier 2 with a multiplier of 6x. The base reward for GPU Tier is k. The resource reward calculation will be:

(x * 1 + y * 6) * k

GPU Resource Tiering

Fizz Node can earn points based on the GPU resources they contribute to the network. Different GPU models are categorized into tiers, each with its own multiplier. The higher the tier and multiplier, the greater the points for that GPU. Below is a table showing all supported GPU models, their tiers, and corresponding multipliers:

We support almost all Nvidia GPUs and continuously add support for new ones, including AMD GPUs. This table is useful if you want to become a fizz node and lend your GPU. Here is the definition of the columns:

• GPU Name: This is useful for users who want to lease a GPU. When specifying the GPU you want to lease, you need to provide the GPU's short name instead of the full name. Otherwise, the network won't recognize the GPU type, and the deployment will fail.
• Tier: This helps fizzers understand which resource tier and associated multiplier they are eligible for. This is important for receiving points as part of the Fizz network.
• Multiplier: This is the multiplier for the tier. This is important for receiving points as part of the Fizz network.
• FN (Fizz Node Points): This is the base point for all GPUs in the tier in Spheron Points.
• GPU / hr: This is the price for the GPU leasing in USD per hour. The price is calculated based on the GPU model and the tier taken from the market price of multiple GPU marketplaces.
• GPU / mo: This is the price for the GPU leasing in USD per month. The price is calculated based on the GPU model and the tier taken from the market price of multiple GPU marketplaces.
• CPU / mo: This is the price for the CPU in USD per month. The price is fixed at $0.75 per month for all GPU types.
• RAM / GB/mo: This is the price for RAM in USD per GB per month. The price is fixed at $0.1 per GB per month for all GPU types.
• Storage / GB/mo: This is the price for storage in USD per GB per month. The price is fixed at $0.01 per GB per month for all GPU types.

CPU Resource Tiering

The CPU Support & Tiering list categorizes various CPU types based on their performance and capabilities. Each tier has a specific multiplier within the Spheron protocol. Here's the detailed table below:

We support almost all CPU types and continuously add support for new CPUs. This table is helpful if you want to become a fizz node and lend your CPU. Here is the definition of the columns:

• CPU Type: This is the full name of the Compute.
• CPU Name: This is useful for users who want to lease a CPU. When specifying the CPU you want to lease, you need to provide the CPU's short name instead of the full name. Otherwise, the network won't recognize the CPU type, and the deployment will fail.
• Tier: This helps fizzers understand which resource tier and associated multiplier they are eligible for. This is important for receiving points as part of the fizz network.
• Multiplier: This is the multiplier for the tier. This is important for receiving points as part of the fizz network.
• FN (Fizz Node Points): This is the base point for all CPUs in the tier in Spheron Points.
• CPU / hr: This is the price for the CPU leasing in USD per hour. The price is calculated based on the CPU model and the tier taken from the market price of multiple CPU marketplaces.
• CPU / mo: This is the price for the CPU leasing in USD per month. The price is calculated based on the CPU model and the tier taken from the market price of multiple CPU marketplaces.
• RAM / GB/mo: This is the price for RAM in USD per GB per month. The price is fixed at $0.1 per GB per month for all CPU types.
• Storage / GB/mo: This is the price for storage in USD per GB per month. The price is fixed at $0.01 per GB per month for all CPU types.

Liveness Requirement

Unlike provider nodes, Fizz nodes do not have a trust tiering system. The network assumes Fizz nodes are less reliable and suitable for specific use cases that don't require highly stable systems. However, there is still a minimum liveness requirement to receive points:

• Fizz nodes must maintain at least 50% liveness within an ERA to receive points.
• If a Fizz node's liveness falls below 50% in an ERA, you will not accrue any points for that ERA.

How Liveness is Calculated

Liveness for Fizz nodes is calculated using a simple hourly challenge system:

• Every hour, at a random time, the network checks if the Fizz node is live and operational.
• During this hourly check, the network also validates that the available resources (GPU VRAM, CPU, RAM, and Storage) match what was claimed during node registration, excluding resources currently being utilized.
• If the node responds successfully to the challenge and passes the resource validation, it passes the liveness check for that hour.
• If the node fails to respond or fails the resource validation, the liveness check for that hour fails.
• There are 24 challenges in total for each ERA (24-hour period).
• If a Fizz node fails 12 or more challenges in an ERA (50% or more), you will not accrue any points for that ERA.

This system ensures that Fizz nodes are incentivized to maintain both reasonable availability and accurate resource reporting without the stricter requirements placed on provider nodes.

Reward Calculation

The reward for Fizz nodes is calculated based on two main factors:

1. Resource Contribution: The amount and quality of resources (e.g., GPU, CPU, storage) contributed to the network.
2. Liveness: Whether the node maintained at least 50% liveness during the ERA.

The final reward for an ERA is calculated as follows:

ERA Reward = Resource Reward Points * Liveness Factor

Where:
- Resource Reward is calculated based on the contributed resources
- Liveness Factor is 1 if liveness ≥ 50%, or 0 if liveness < 50%

Direct Earnings from Users

In addition to the liveness points, Fizz node operators can earn directly from users who lease their compute resources, providing an additional revenue stream for node operators.

How Direct Earnings Work

1. User Leasing: When a user leases compute resources from your Fizz node using your client, they pay fees based on the pricing you set during the setup.

2. Immediate Earnings: These earnings are credited to your account immediately after the lease is completed.

3. Withdrawal: You can withdraw your earnings at any time from your dashboard.

Fee Structure

While you receive the majority of the earnings from user leases, there are some fees associated with each transaction:

• Foundation Fee: 5% of the earnings goes to the Spheron Foundation
• Gateway Fee: 5% of the earnings go to the gateway

This means that as a Fizz node operator, you receive 90% of the total amount paid by the user for leasing your compute resources.

By Offering competitive pricing and maintaining good resource availability can maximize your direct earnings from user leases and the liveness points.