We propose to launch an incentivized devnet to support Xandeum’s development and community-building efforts. This devnet will serve as a testing ground for intermediate releases and provide valuable feedback before mainnet. In this first phase, we focus on incentivizing vNode (validator node) operators, ensuring they contribute to a stable, high-performing devnet. Subsequent phases will address pNodes (storage nodes) and RPC nodes (Dock and CachedAccess providers).
Context
Xandeum aims to build a scalable, blockchain-grade storage layer for Solana and potentially Ethereum EVM-based smart contract platforms, integrated with a side network of Pods, Atlas indexing, and Dock logic. As we iterate on our technology, we need a stable reference network—the devnet—to validate our assumptions, test intermediate code changes, and foster a community of skilled operators who understand the platform’s vision.
Goals
Establish a devnet from December 30, 2024, until June 30, 2025, running modified Agave clients as vNodes.
Provide performance-based incentives to encourage stable, efficient validation.
Begin building a dedicated community of node operators who will play key roles as we transition toward testnet and mainnet.
Lay the foundation for integrating pNodes and RPC nodes in subsequent proposals.
Details of the vNode Incentivization
1. Devnet Timeline
Start: December 30, 2024
End: June 30, 2025
2. Staking and Performance Requirement
Each vNode operator will receive a 10,000 SOL (Xandeum devnet SOL) stake account from the Xandeum Foundation.
The validator must maintain performance. Performance is measured by the monthly average staking rewards relative to the top 3 best-earning validators.
Threshold: At least 85% of the top-3 average staking rewards.
Incentives:
Meeting the threshold earns the full monthly incentive.
Falling below reduces incentives proportionally. Example: Achieving 42.5% of the top-3 average results in 50% of the monthly incentives.
3. Incentives
Base Incentive: 10,000 XAND per month (locked for 12 months in the DAO before they can be claimed).
Incentives will be paid out of the Community Building category of the DAO treasury.
Participants active by January 15, 2025, will receive full compensation for January, regardless of performance.
These are recommendations only—performance is the ultimate criterion.
VPS (Virtual Private Servers) are allowed and expected to meet cluster performance requirements. Participants may choose their provider and specifications.
5. Participant Requirements
Capacity: Aiming for at least 35, but no more than 40 devnet vNodes. Onboarding will close once 40 nodes are online.
KYC: Participants must complete Know Your Customer (KYC) verification, including:
Name, address, date of birth.
$1 credit card transaction (Antsle, Inc. will process on behalf of Xandeum Foundation).
ID verification via an external provider chosen by Antsle, Inc.
Restrictions:
Maximum of 1 incentivized devnet vNode per participant.
Participants bear all expenses for hardware, hosting, connectivity, operations, etc.
Rationale
Linking incentives to performance ensures a healthy devnet and provides realistic feedback on validator behavior.
Locking incentives for 12 months aligns operators with the project’s long-term vision.
Conclusion
Approving this proposal sets the stage for a robust devnet, staffed by engaged and competent validators. This incentivized environment will accelerate development, improve code quality, and foster a loyal community, ultimately benefiting Xandeum’s journey toward a storage-enabled, blockchain-grade solution.
Community discussion of this XIP is happening at the Xandeum Forum.
During the 1st DevNet — several of us ran 6 Validators in exchange for 9K XAND(C) before we even had a value for it. For a single Cherry Server at that time, you could probably get it for $160/month. My VPSs were running around $220/month when you throw in storage, etc because I was overspec’d.
For me, I was paying $1800 a month that covered the 6-vNodes plus (and what was not covered by the DevNet rewards) another 2 RPCs which were similarly spec’d servers that helped support the broader network. In exchange for my 6 servers, I received a payout of 9K XAND per month…which at today’s value would be $63/month or $378 over the 6-months. A heck of a bargain for Xandeum right? Basically an interest free loan that is “supposed” to pay off later right? Well…its not paying off. In fact, with the latest DevNet offering, its a slap in the face that 1 box would be worth 10K XAND with 6 boxes was only worth 9K.
Today, Xandeum wants to run DevNet with a payout value of $70/month – $420 in total per vNode operator (~$17K) for ~$40K of server infrastructure…and that is not including the time of the operators. And they want to make those operators whole (or provide final payment really) 12 months after they did the work. Basically, another interest free loan that is not equal to the services provided even in today’s dollars, for something that was already provided the last time…and yet yielded no results. Not a single storage node was made. No Xandipedia. Nothing. I know this beacuse after the first 6 months, I shut down 5 of my 6 servers and it had zero impact to the Development because nothing was being developed on DevNet. I monitored the transactions going in and out and it was a straight line…just vNodes talking to vNodes and the PRC…thats it.
Many of the DevNet operators have bought domains to protect Xandeum’s IP. Many of us have purchased Antsle hardware (which is now not capable of running a single node…and potentially not a single pNode but that remains to be seen). We want to see this project succeed…but the honestly…the only people making money right now are the folks working for Xandeum…and its with folks who staked their 15K SOL with them on their validator…and we kept getting asked to do this or that or this over there…and yet here we are.
FOMO happening? Maybe…what’s different between now and 2022 or 2023? We are 2-years down the road and all we have going for us is the Bitoku token turned to the Xandeum token which turned to the Xandeum token. We have liquid staking. We have air drops. But we don’t have storage, and that was projected to be completed in 2-years. So 4-years to get a storage software solution?
Here is some math for you — Solana has a maxium theoretical transaction per second count of ~65K. Their whitepaper says 710K…so its somewhere in between. Regardless, do you know how many users per second for Amazon S3? 1.1M (in 2013). Heavy loads in 2020 were considered 10K per second for an application, just 1 application.
Can the DAO Council certify each wallet holder is NOT a member of the security council and that none of the wallets associated to Xandeum the organization voted in this proposal?
Also…
I would like to formally request that the propsal be ammended, raising the DevNet rewards to 20K XAND per month per validator. That would at least be close to the costs associated to operating a single vNode, of course minus the labor costs.
No, I’ve got no idea how I would do a cost-analysis. Do you have any info on this? I’m waiting for Bernie’s videos to explain all this when the time comes. I’m hoping it will be simple as I’m not very technical.
I would probably look at the server specs Xandeum put out there in this proposal and figure out what that would run you a month if you were planning on doing a pNode. Granted, a pNode “might” have lower specs, but at least you have a number to consider.
As we’re now in the Cool Off phase and only hours from getting this proposal passed, I want to thank everyone for their engagement and leaving their comments here. We’ve had the first comments in about six different places, mostly on our Discord server. We would love to see the discussion around DAO proposals concentrated in this forum in the forum in the future, so everyone can find things easily and we have them documented and also searchable on the web.
I’m glad we will be starting the vNode Devnet. Please understand this is not something that the Xandeum Foundation strictly needs at this point in time. Most of the storage layer is being built on a “Trynet” that is being operated by Xandeum itself, and where we can deploy a new version and restart the cluster and catch up all within 30 seconds. This type of speed is needed for rapid prototyping.
So we were thinking whether running a Devnet right now can even be a distraction from building the storage layer, and to a certain degree it is. However, we want to engage our community as much as we can and that’s why we’re offering them to run a vNode in our Devnet. That way, we can practice working together and learn, which is all important.
As for the amount of rewards for running a vNode, we chose those 10,000 XAND to cover the hardware/hosting cost of the node, and a bit more even at today’s prices. We feel that is a threshold that’s comparable to other projects (with the potential for future token price appreciation likely higher here) and it’s a threshold where we can work with people that want to be involved early and see the potential. We’ve seen this trait in our community so far and are extremely thankful for it! At higher compensation levels, we might attract people that we don’t really want to attract (just yet). Xandeum will be about making money at some point - and as long as the main product is still under construction, we’re focusing on raising more money and being frugal with what we have in order to fund development.
The Devnet and the vNodes will gradually become more important for our development efforts as we approach product completion.
For the future, we want to try to put out a draft proposal and discuss it here in the forum before we put the final proposal out. That way, we can listen to the community’s feedback and potentially use it to modify the contents of the proposal before we put it up in the DAO. That’s one thing we can learn from this proposal.
Thanks again for everyone’s participation and Merry Christmas!
Can you expand on the 10K XAND covering costs at today’s prices? We would be interested in knowing the provider you spec’d that against. What projects did you compare against?
$0.015 was the magic number I was working off for hopes of a reasonable return (not more), however, with airdrops happening and the immediate sales that follow, we must be pragmatic about that.
I would agree, if you do not need a DevNet right now, put a pin in it and come back to it. Focus on the Dev work. If you need a mini-DevNet to try in the wild, you already have a small team of folks who can support you quickly who can spin it up and back down as needed. I, as I am sure others who voted NO, would be happy to do that. Just like we did when the incentived DevNet ended.