What is a node (DaaS)

Do not confuse with NaaS, which is actual Blockchain Nodes as a Service.

Creating a node

A "node" is created when someone "locks" an amount of tokens away forever. In return, this node will generate the owner perpetual rewards in the form of the token paid.

Compounding

Compounding is where you take your pending node rewards and re-use them to improve your node or increase the amount of nodes you own. This concept is highly effective in tokenomics as it incentivizes earnings to stay in the ecosystem.

Example:

I pay 10 RAINBOW for a Unicorn. This Unicorn will generate me 0.7 RAINBOW per day.

I can take my daily reward of 0.7 RAINBOW and accumulate them to make another Unicorn now I get 1.4 rainbow a day.