Hello ALGO team and all participants! As far as I understand, Relay Nodes are backbone of the Algorand network. Algorand Inc pays some 3rd parties to run these nodes (outside of the consensus algorithm itself, the network itself does not rewards relay nodes). This looks like a big problem for the …

The documentation states : “Technically both non-relay and relay nodes can participate in consensus, but Algorand recommends only non-relay nodes participate in consensus.” I agree that a relay node will require more (network, CPU, memory, file handles etc.) resources than a non-relay node, but I …

@krotkiewicz and @rmb , I really can’t tell what the income sources for the network are going to be in 5, 10 or 20 years from now. As you’ve both speculated, there are some ongoing operational costs that need to be covered ( the relays are just part of that ). From what I can see, Algorand current…

[image] tsachi: not having a relay participate in the consensus - this was stated just so that it would “remove” the relay from being the target of an attack. If the relay is not the one that it making the proposals/votes, there is no motivation to try and “hack” it. Hacking doesn’t always se…

[image] tsachi: Transaction fees. The fees are being collected, and currently - not used. In the future, Algorand might make a different decision around these ( i.e. maybe 80% would go to rewards and 20% to maintenance ? ) Actually, all transaction fees are currently sent to the reward sink…

Actually, all transaction fees are currently sent to the reward sink account. @aojjazz Where have you seen that ? on the mainnet genesis.json, the Y76M3MSY6DKBRHBL7C3NNDXGS5IIMQVQVUAB6MP4XEMMGVF2QWNPL226CA address is the fee sink, where all the fees are being sent to. The 73777777777777777777…

// The FeeSink accepts transaction fees. It can only spend to // the incentive pool. FeeSink Address `codec:"fees"` // The RewardsPool accepts periodic injections from the // FeeSink and continually redistributes them to adresses as // rewards. RewardsPool Address `codec:"rwd"`

@aojjazz - ahh… I see where the confusion comes from. It said “It can only spend to the incentive pool”, but there is no process that does that. In fact, you can look here and see that no transaction have ever been executed that moved Algos from the fee sink to the reward pool.

It’s not literally an on-chain transaction - just like the transaction fees aren’t a transaction for their fees back ‘out’. It’s a direct account update in the node code. I walked through it one time and I’m pretty certain saw it all there.

Actually, I’ll have to check again - I’m probably thinking of the transfers out from the reward account (also no ‘actual’ transactions for those).

Who owns that address? Doesnt that make the Algorand blockchain rather centralized if there is a single entity collecting the transaction fees?

Long term incentives for running Relay Node

General

tsachi August 29, 2020, 12:45am 13

@petew, I don’t know for sure. I suspect that the Algorand Foundation has it, but I could be wrong. Either way, you can easily see that no one has yet “taken” any of these fees.

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Long term incentives for running Relay Node

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