Well, that would actually be my guess

But I think they will have to do it sooner

I'm not a buyer anymore

Tankin in 4000 sat

My accumulation is over ;)

Jimmy Jones 2
Interesting, why so?

Economics. The entire project is depending on the service node network

Right now the rewards are not profitable, They will pay for the VPS in most cases

But do not cover the RISK, and WORK

So, we are close to the tipping point where operating a node will cost more then the rewards are worth.

This can be damaging to the network.

To avoid this, reducing block rewards will most definitly reduce some selling preassure

Not sure if it will work, I'm just speaking from personal experience of running service nodes

Doing the math, I'm loosing money

I can afford to for longer periods as I have from day one

Agreed but based on the teams history they will let the market balance itself out and focus on what they call tech.

Well, yeah and I'm all for that

But sometimes tech only might leave you with just that

Going full PoS has been planned for this year anyhow

Yeah... But dont know either could jump the price ahead or not

Reduction of rewards should be noticable

The ath could loki hit around 2 usd

Max
I don't follow. As value of node goes up so does value of reward?

Nop, the rewards are what they are. But operators have to pay for the servers in $. If we were to sell all rewards to cover our servers we would most likely cover the cost but thats about it. If we all started doing this, the price would collapse and make snodes unprofitable. Now some might argue that operators should cover the expense. However, they are likely not count risk (lets face it this is a long shot when it comes to investments), work (even if running apt-get install everyonce in a while time is money), etc..

VPS costs are tied to fiat. Node returns are tied to coin value. If the value rises the cost as a percentage of returns goes down. Conversely if it goes down you collect a lower return.

To some extent its bound by the cost of renting a VPS which but without offsetting the risks of owning 5k$ of one of the riskiest investments on earth.

Also, time to set up, knowledge to do it, etc..

I don't know how other operators feel/think

These are my concerns

Let's use some real world numbers. Node returns 300 Loki per month x ~$.40 / Loki = $120 fiat. Node cost I dunno lets say average $15-20. so the ratio in this example is $120 returns to $20 for a VPS. Net $100. If Loki goes to $.50 then net an additional $30 so $130 net. Someone verify my maths please.

I don't have such numbers

Well, I'm only 25% of the node

My rewards from the stake don't count

The only part that counts for the service node operator is the fee

thats for the server

10% isn't coming out of your end if you are charging to host right?

It's not, but charging 10% barely covers the expenses of running the server

so if 3/4 of $120 is coming from elsewhere that's net $9 coming in and you are making up the rest from your end. 25% stake is grossing $30 + $9 = $39. At 10% if I read you correctly you need a VPS that costs $12 or less?

At least to get the same reward as joining someone that offers hosting at 10% that is.

Yeah around 12$ NOW. But note loki was between 0.14 - 0.22 for a year where I've payed for the servers and did not cover them

Even if hosting is 5$. Is the operator only getting 7$ a month for taking care of servers?