On the tenth of April, Universa CEO Alexander Borodich held an AMA session regarding running nodes on Universa network. Guus, Universa Community Moderator, asked the questions on behalf of the community. At our website, we provide the summary of all the questions and answers to them for all people that were not able to join the session or were not aware of it. Interested details are highlited in bold.
Sidenote from our side: If you are looking are interested in running a node on Universa network, don’t hesitate to fill in this form!
Q: Well, first of all, thank you a lot Alexander that you are taking time for this.
Alexander: My pleasure and I do apologies if this is not the ideal format, we will play with Reddit next time
Q: Let’s start with the first question; What are the requirements to run a node? Plus, would you also be able to give some sort of general introduction of the idea behind the nodes? For people unfamiliar with the concept.
Alexander: The requirements were stated at the Whitepaper and won’t change. Your hardware should meet the requirements and you have to pass KYC (I think you did it when you bought tokens). That’s it.
Q: So to confirm them again; you are required to have 1M UTN(P), pass the KYC and have the proper hardware. 16core 32gb 256ssd. To run a node you are required to obtain a license. There have been multiple conversations about this with(in) the community. Both purchasing a license and staking, locking etc. mechanisms have been discussed. Could you enlighten us how Universa is planning to approach this? How will people obtain their license?
Alexander: As for general information – to have fully decentralized blockchain and economy we need to have fully decentralized and independent insfrastructure. The node is the set of hardware + software, which helps validate status of each and every transactions. And get rewarded with comission for this.
Q: What is the stance of Universa against pooling for a node? Would that be okay as long as the license for running the node is linked to one single person/entity? Where Universa would reward that person/entity and he/she/it would have to split the rewards within the pool?
Alexander: We would like to perceive Node Owners as our Partners and the goal is to make this job profitable enough to make it prestigious and important for the society. So, in general what is good for the node owner is good for the Network. License is needed 1) to make this process of balancing number of nodes (profit level) with a current status of growing network. 2) to prevent different types of attacks, so if node doesn’t not keep SLA, it will be shut down by the Nodes smart contract. The staking or fee. If you check the previous answer – we would like you to operate the Node and not to lose your tokens, so of course the 1M tokens will be held in Node Smart Contract.
Q: Is there a minimum amount of time someone has to run his/her node? After this period would it be possible at all times to waive/give up a license and regain the 1M tokens?
Alexander: You have to send your 1M tokens from your address to the address of Smart Contract. You wont be able to use them until you are operating the Node. Lets discuss canceling in a different answer. Minimum period currently is 12months. Later on all these parameters will be in Nodes Smart Contract and will be managed automatically.
Q: Thank you for your answer. So to be clear, after those 12 months someone would be able to regain control of his/her 1M tokens but would lose the license to operate the node when doing so?
Alexander: Smart Contract will held 1M tokens for a year for any single node license. It will prevent us from some kind of attacks to the Network. According to our internal math first year it will be 100-200 nodes, and then during the growth of transaction amount new licenses will arrive to the pool of free to get licenses.
Q: What do you mean exactly with free to get licenses?
Alexander: All Nodes/Network Smart Contracts will be always open / published / accessible on the Network for monitoring/control purposes. Also US citizens will be allowed to get nodes.
Q: Are there any internal projections on the amount of transactions per day for this year?
Alexander: The potential ROI is hard to estimate yet. I will wait till June/July to get first projects on Universa to get this estimate. If you know any projects who need millions of transactions – send them to me 😉 We need such rate asap 😉 (of course, we are looking for them from our end heavily)
Q: What would happen if, for example, 300 people would want to run a node but, like you said, 100-200 nodes would be wanted for the first year. Will there be a mechanism that selects people? Based on what?
Alexander: We are still discussing internally how to make it. We have FIFO list of nodes, but are open to any your recommenrations.
Q: How will rewards be paid to node holders? Will this be in UTN(P) or in other currencies?
Alexander: Rewards will always be in UTN, as it is the only fuel we have. All transactions will be paid in UTN, even if business has fiat contract on paper.
Q: Will rewards be paid daily, weekly, monthly? Since transactions are pegged to 0.01 USD will it be in an UTN equivalent based on exchange rates?
Alexander: We are in digital world 😉 Instant conversion is available 😉 Payments are going to be monthly or be-weekly, we will have community of Node Owners to decide it.
Q: Then another question, let’s get back to running the node and locking up the tokens. For example; I will run a node and have my tokens locked for 12 months. What happens after 12 months if:
1) I regain control of my tokens and I sell them on the market, or I take them out the smart contract; do I “lose” my license to run a node?
2) I decide I no longer want to run a node?
Alexander: As long as you operate the node, tokens will be locked. But you will be able to get it back and to return the license to the pool.
Q: So after the 12 months this can be done at any time?
Q: Does there have to be a new owner of the node before I can sell the license and receive the tokens back?
Alexander: He has to meet basic reqs ( 1M tokens/server hardware test passed)
Q: Would it be also possible to transfer my license to someone else? Where he/she would pay me 1M tokens OTC and the license and locked tokens would become property of the new node owner/operator? Could this also happen within the first 12 months?
Alexander: The same as for Sale. It might be done at any time. We are not going to control the secondary market. Sell it, Buy it, create pools.
Q: Ah! Thus if I would have a node and an accompanying license; I could also transfer (sell) the license to another person after, for example, 6 months in accordance with Universa (the new owner would pass the KYC and have the proper hardware). Here I would agree on a price with the new node owner and he/she would be the owner of the node license and the 1M tokens that are locked in the smart contract. Thus for this operation I would have to give private keys to the new owner or something?
Alexander: The smart contract will help both of you to make the new owner and to escrow the both 1M and the delta (hopefully positive for seller)
Q: Other question; let’s say I own more than 5M tokens and want to run 5 nodes. Is there any bias against one person (or group of people) running multiple nodes?
Alexander: Being libertarian I prefer to give 1 license and then put your next license request to the end of the line. But we are going to automate this process to make it as equal as possible but also as spreaded as possible. The number of nodes per region might be limited. In ideal near future Smart Contract should solve it – how to get the license, to sell and to get my profit from it.
Q:Would it be a solution if someone would NOT colocate multiple nodes in that situation?
Alexander: There are limited data centers in the world, but let’s try to cover all the regions to make the fast and powerful blockchain. We would like to have a high independence and high diversity, so the number of nodes per owner will be limited by contract. But according to the node request form it wont happen this time. Lets reiterate – we will have profitable numbers of nodes(100-200 first 2 years), transferable license, where 1M tokens are locked, but you will be able to get it back in 1 year or to sell license at anytime.
Q: Question from the crowd; Will there be a list of cloud company from where we can rent those server accorning to universa hardware recommendation? Can server be virtual or only physical ?
Alexander: If our hardware test will pass on your setup – we do not mind. We highly recommend to have phisycal hardware.
Q: And some quick final questions; how many nodes will be run by Universa itself?
Alexander: ideally way less than 10% of nodes
Q: what will be the rate of adding new nodes – i.e. how many per month. If all are staked from the very beginning – 12 months from now the market could crash if all staked tokens come to a market and get dumped.?
Alexander: We can not control it, the Smart Contract will allow to sell the nodes. But the network in a year will be strong enough to survive, as I may predict from the current projects
Q: Would the smart contract to which send 1M of tokens be able to receive from different senders (for example 500k from one address and then 500k from another). this would facilitate the creation of pools between acquaintances. Or would this have to be done outside of Universa?
Alexander: Definitely not our cup of tea. Node Owner has to transfer 1M of tokens to get the license. Please create pools behind the doors. We will help later with pooling smart contracts, but it is not our priority.
Q: Whoopsie I’m going to add one more. Is there an estimate on when people who already filled in the typeform to express their interest in running a node will receive a response? Is there a timeline for that?
Alexander: This AMA was a trigger to start communicating. I would expect next week to start this process.
Q: Are there any last remarks/comments you would like to add to today’s AMA Alexander?
Alexander: Thank you all for your questions and your support. And thank you also to everyone who took the time to tune-in or who will be reading back this conversation later! It has been a pleasure.