Node Rewards & Incentives
Overview
Running a QuStream Node (Validator or Encryption) provides operators with staking rewards and revenue share incentives. QuStream ensures a balanced and fair reward model where both node types receive earnings proportional to their contributions.
To maintain sustainability and fairness, rewards come from two sources:
1️⃣ QST Staking Rewards – Earned by both Validator and Encryption Nodes based on token emission.
2️⃣ Revenue Share – 60% of QuStream’s encryption service fees are allocated to node operators.
Rewards are paid out every 3 days to maintain consistent earnings for node operators.
Staking Rewards for Nodes
- Both Validator and Encryption Nodes require a 200,000 QST stake to operate.
- Validators can accept delegated staking, increasing their potential rewards.
- Encryption Nodes do not accept delegation, but receive a larger portion of revenue share.
- Annual staking rewards are derived from QST’s token emission model and distributed every 3 days.
QST Staking Rewards & Token Emission Model
QuStream follows a gradually reducing token emission model to balance long-term sustainability:
- Initial Token Emission Rate: 8% per year (Year 1).
- Final Token Emission Rate: 1.5% per year (Year 10).
- Total QST Supply: 1 Billion tokens at genesis.
- Annual Minted QST Rewards: Reducing yearly, from 80M QST (Year 1) to ~55M QST (Year 10).
- Rewards are distributed every 3 days (~120 payouts per year).
- Each payout contains (Annual QST Emissions ÷ 120) distributed across active nodes.
Example: Staking Rewards Over 10 Years
| Year | Token Emission Rate | Annual QST Emission | Staking Rewards per Node (Yearly) | Staking Rewards per Node (Per Payout) |
|---|---|---|---|---|
| 1 | 8.00% | 80M QST | ~160,000 QST | ~1,333 QST per 3 days |
| 2 | 7.22% | 77.2M QST | ~154,400 QST | ~1,286 QST per 3 days |
| 5 | 4.89% | 68.9M QST | ~137,800 QST | ~1,148 QST per 3 days |
| 10 | 1.50% | 55M QST | ~110,000 QST | ~916 QST per 3 days |
Validator Node Rewards & Rotation Mechanism
How Validator Rewards Work
Validator rewards are paid from:
- QST Staking Rewards (from Token Emission).
- 15% of Encryption Revenue (Paid every 3 days).
Validator Node rotation ensures fair distribution:
- Not all Validators validate every block.
- A rotating selection mechanism ensures decentralized participation.
- Validators that actively propose and sign blocks receive additional priority.
- Inactive validators receive lower rewards or get slashed.
Learn More → Consensus Mechanism (PoS) & Rotation
Revenue Share Distribution
60% of all encryption service revenue is distributed to node operators:
🔹 15% to Validator Nodes → Distributed proportionally among active validators.
🔹 45% to Encryption Nodes → Distributed evenly across all encryption nodes.
Example Revenue Distribution (Based on €10M Annual Revenue)
| Category | Percentage of Revenue | Annual Payout | Per Node (Est.) |
|---|---|---|---|
| Validator Nodes (100 total) | 15% | €1,500,000 | €15,000 per validator/year |
| Encryption Nodes (400 total) | 45% | €4,500,000 | €11,250 per encryption node/year |
This revenue share supplements QST staking rewards, ensuring fair distribution.
Why Become a Node Operator?
✅ Earn Passive Income – Receive QST staking rewards + revenue share.
✅ Support Blockchain & Encryption Security – Validators secure transactions, Encryption Nodes enable post-quantum security.
✅ Participate in Governance – Validators contribute to blockchain decision-making.
✅ Scalable Income Model – Earnings increase as QuStream adoption grows.
Conclusion
QuStream’s balanced reward system ensures that Validator and Encryption Node operators are fairly compensated. Whether securing transactions or managing encryption, node operators receive rewards from staking, transaction validation, and encryption service revenue.
Next Steps
- Learn How to Run a Validator Node
- Learn How to Run an Encryption Node
- Explore QST Tokenomics