> For the complete documentation index, see [llms.txt](https://10-rainbow.gitbook.io/unicorn-nodes-1/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://10-rainbow.gitbook.io/unicorn-nodes-1/what-is-a-node-daas.md).

# 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.