NewsNode Runner Vesting: Accelerated Vesting Model

Node Runner Vesting: Accelerated Vesting Model

By

According to EIP-11252019AF, within the Node Runner Vesting plan for 2020, there is the opportunity for the % of Algos vested in 2020 to accelerate from the base level of 3%, if the Algo token rises in value, based on certain criteria.

The trigger point for Accelerated Vesting to begin is the day on which the 30-day moving average (using Messari.io as the external data source) exceeds $0.30 (our initial maximum). At this point, an accelerated vesting equation is applied which will calculate the new vesting amount for that day.

For a given node runner, the additional daily number of vested tokens is:  

Y = (a - b) * c * 0.0015 * d (if the number is positive)

Y = amount of additional tokens received today by the given node runner.

a = today’s 30-day moving average.

b = previous 30-day moving average maximum.

c = number of elapsed days since Jan 1st 2020.

d = original unvested token amount of the given node runner.

The 30 day moving average is the average of the last 30 days daily open prices (as supplied by Messari.io https://messari.io/asset/algorand/historical - note: the exact value provided by the API is used rather than the rounded value from the webpage). It is important to note that, by using a 30-day moving average, it is possible for the 30-day average to increase on a day that the daily open price declines. This occurs when today’s open daily price is higher than the daily open price 31 days ago, thus lifting the 30 day average.

To demonstrate how this would work, we have prepared a sample graph of how the change in 30 day moving average would result in accelerated vesting events. The x-axis is time, while the y-axis is 30 day average price. The “colored” sections in the graph demonstrate visually how and when the accelerated vesting occurs:

Latest News

Blog

How to Win A Web3 Hackathon: Change the Game

Blog

What Is a Hackathon? ​​Guide​​ to Web3 Hackathons in 2024

General

CDP Venture Capital launches Frontech Accelerator, with Algorand and Microsoft as technical partners