Splintershards (SPS) validator software Mainnet is set to launch in Q4 of 2022. Currently, the validator node is in the internal testing phase while the public testing will open in a few months.
To see how the ecosystem works, let’s dive in.
The SPS validator node will run on almost any computer as they have minimal hardware requirements. Furthermore, the validator software will be 100% open source – everyone can download and run it without any fees or unnecessary restrictions.
Initially, they are planning to release the validator node as a docker container so that you can run it on windows within a Linux machine. The developers will share the exact system requirements as the open beta launch get closer.
The SPS Governance System – Delegated Proof of Stake (DPos)
The SPS Governance System will be identical to the ones we’ve seen in BSC, EOS, Hive, etc. It will use the Delegated Proof of Stake (DPoS) consensus model to allow the node accounts to stake SPS tokens and vote.
The voting can be to choose which node entities will be responsible for validating the SPS transactions and who controls the SPS foundation funds.
The Block Distribution
Depending on the amount of SPS staked, every validator account will be assigned a block – they can vote as well. The best part about all this is that every other validator can check and validate transactions on the blocks as the hash of data will be published to the Hive blockchain.
When any transaction is confirmed and validated, the validator will get a reward in the SPS token. As you stake more SPS tokens, more blocks will be assigned to you, potentially more rewards.
SPS Validator Node License
We know that staking SPS tokens will give privileges of voting, validating transactions, and earning rewards but the ecosystem as such won’t be suitable for fair distribution of nodes rewards. The majority of the accounts will stake SPS and keep getting rewards and voting privileges – other accounts will not be able to run validator nodes at all.
To solve this problem, there will be SPS validator Licenses that anyone can purchase to run the validator node without having to stake SPS tokens.
According to Splinterlands, 80% of the SPS tokens spent on the node license fee will be burned while the remaining 20% are set to be put into the SPS foundation. The company is confident that it will reach a $3 Billion market cap in the next 5 years or so.
Another good thing about the SPS validator license is that it can be traded and sold on any supported marketplaces, just like an NFT. If you want to buy more licenses and earn more rewards, you need to run only one SPS node as all your licenses can be utilized via that one node. You will earn rewards for every license, though.
SPS Token Rewards
The SPS Whitepaper states that every month, there will be 3,750,000 SPS tokens allocated to the reward pool. Out of all the SPS tokens, 10% of the tokens will be reserved for rewards in block validation for the node accounts that can vote as they stake their tokens.
The remaining tokens (3,375,000/month) will be allocated to rewarding SPS license holders that are running the node validator.
|Reward Pool||Initial SPS Tokens per Month|
|SPS Staking Rewards||7,500,000|
|SPS Validator Node Rewards||3,750,000|
Each month, the total monthly tokens will decrease at the rate of 1%. After 5 years, it will be 20,518,400 SPS tokens allocated per month.
Staking SPS and Licensing (Both Give Rewards)
Yes, if you’re staking SPS tokens and getting SPS rewards, you can still buy a license and earn rewards for both pools.
License Cost and Presale
Within a month, the validator licenses will be available to buy in the Splinterlands shop. The exact date of availability, however, hasn’t been made public yet. Here’s the table that shows the pricing structure of node licenses:
|Phase||Quantity||Price||VOUCHER Discount Rate|
|Presale||2000||$1000 of SPS + 500 VOUCHERS||N/A|
|Tranche 1||3000||$3000 of SPS||$3.0|
|Tranche 2||5000||$5000 of SPS||$5.0|
|Tranche 3||10,000||$7500 of SPS||$7.50|
|Tranche 4||10,000||$10,000 of SPS||$10.00|
|Tranche 5||10,000||$15,000 of SPS||$15.00|
|Tranche 6||10,000||$20,000 of SPS||$20.00|
|Tranche 7||10,000||$40,000 of SPS||$40.00|
The developers have structured the pricing in a way that these licenses will be available to in years to come. Although, they might sell out quickly as the sale goes live. Some of you would think that the higher price tag of SPS and VOUCHER tokens is not justified, but as the hype keeps growing the prices increase over the years, you’ll know how good of a deal it is today.