SPS Validator Node Licenses Seem like A Bargain to Me...

I think that running an SPS validator node is going to offer one of the best returns in the @Splinterlands ecosystem over the next few years....

Hell, they may even pay for the cost of running the server(s).

I say 'may' because there are a lot of variables at work that will determine your return on running an SPS validator node namely...

The cost of buying the node licence in the first place
The price of SPS
The price of VOUCHER
How many nodes are running (the rewards are shared)
What your node rank is (the T20 earn a lot more - but I'm ignoring this here!)
The cost of running the server (NB I'm excluding this here too, maybe not the best idea).

You can find out details of the node licence pre-sale and tranche sales in this post here, and all stats below are based on this post!

Initial costs....

The nodes are being sold in presale and then tranches which gradually get more expensive....

Let's just rule out everything after tranche 1 as I think at current SPS and VOUCHER prices these seem a little steep, this means the total cost of a node...

at presale is $1000 plus $500 in Voucher (Voucher is currently around $2) = $1500
in tranche one let's just take the cost to be $3000 and assume markets will make VOUCHER worth as much as the 50% discount they give.

So that's our costing, for now I'm going to assume anything else is too much of a punt at current prices in what looks like a bear market!

Rewards...

Assuming you run a node (presumably with a certain amount of up time) you will be get a share of 3, 375, 000 SPS a month

IF you get into the T50-100 (numbers yet to be clarified) you will also get a further share of 375 000 SPS a month, with the T20 getting proportionality more. I'm playing WCS and assuming we don't make it into the T100.

So your SPS rewards depend on how many nodes are being run. Based on my assumption that no ones going to buy (yet) into trance two, we'll have a maximum of 5000 NODES running (NB that sounds like a lot!)

If that's the case then the returns are

3 375 000/ 5000 = 675 SPS a month or 8100 SPS a year.

But that's not all... we also get 20K VOUCHER a day.....

20 000/ 5000 = 4 VOUCHER a day or 1460 VOUCHER a year.

So with 5000 NODES running your one node will get you...

8100 SPS a year
1460 VOUCHER a year

Now. if we assume an SPS price of $0.10 and VOUCHER at $2 then that's an annual return of..... $3730 over the year.

IF you bought presale for around $1500 - that's break even after around 5 months.

If you bought during tranche one that's break even after around 10 months.

Of course prices can vary...

I could imagine Voucher going down to $1, which it could (I can imagine a lot of selling going on when these nodes go live especially!)

I can also see SPS drifting down again to $0.07 possibly.

But even at those prices if they both drop you're still breaking even after just over a year with a presale purchase

Final thoughts for me this is like locking in the best return on SPS

If you stake SPS you currently get around a 50% return in SPS and VOUCHER, so even if you buy in tranche one assuming prices remain stable you are getting a better return.

And of course if prices of the tokens drop, your staking return will drop too, meaning node licenses (once operational) are still going to offer a better return!

AND all of this assumes you're not getting into the T20.

Finally, the pegging of licenses to dollar value puts a break on how many people will buy them if SPS falls, so it's something of a buffer against your SPS rewards dropping too hard as people are less likely to buy up in tranches 2 3 and 4 if SPS is still dropping, meaning there is a level of protection if you're running a node on your return that you don't get with staking SPS - it's rational to just STAKE with a declining value-asset until things turn around...

Hmmm yes for me, buying a node license is a good move!

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