Truth Network Governance Proposal №1: Amendment to Node Pricing and Gas Fee Structure

Summary

This proposal seeks to modify two core aspects of the Truth Network:

1. Node Pricing Model: Amend the node pricing model so that the price of a new node increases by $100 each time 100 nodes are sold (instead of the current $10 increment).
2. Gas Fee Structure: Introduce a 1% transaction fee with a minimum (floor) of $0.10 and a maximum (ceiling) of $0.50.

• Of the total fee, $0.05 will be burned.
• The remaining portion will be distributed daily to node operators who maintain at least 8 hours of uptime in the preceding 24-hour window.

Voting Mechanism: This vote will be conducted under the existing 1 node = 1 vote system, with the requirement that a majority votes in favour for the vote to be valid. If passed, the changes will take effect with the next promotion from the Blockchain Factory after the vote concludes.

Background

The Truth Network has grown considerably since its initial launch, and market demand for nodes remains high. Additionally, the existing gas fee of $0.05 per transaction has been sufficient to cover basic network costs, but provides limited incentives for node operators who maintain robust infrastructure. Meanwhile, the static price increment model of $10 for every 100 nodes sold no longer reflects the increasing value and utility of the network.

In order to capture a fair value for node operation and ensure that the network remains healthy and attractive for both existing and future participants, it is proposed to:

• Increase the node price increment from $10 to $100 for every additional 100 nodes sold.
• Adjust the gas fee structure to a sliding scale, ensuring both network sustainability and improved rewards for node operators.

Rationale

1. Capturing Proper Value: As the network expands and more nodes are sold, the utility and demand for Truth Network nodes increase. The original price increment model (an additional $10 every 100 nodes) is no longer sufficient to reflect the network’s growth and evolving market conditions. Increasing the increment to $100 per 100 nodes sold will better align node costs with the underlying value they represent to the ecosystem.
2. Rewarding Node Operators: Node operators ensure the network remains reliable, secure, and efficient. By adjusting the gas fee structure, we provide stronger incentives for maintaining nodes online. The minimum, maximum, and 1% fee model ensure the network can handle both small and large transactions fairly:

• Fairness: Smaller transactions are not overly burdened thanks to the $0.10 floor, and large transactions are capped at $0.50 to keep costs predictable.
• Burn Mechanism: The permanent removal of $0.05 from circulation per transaction can support the long-term value of the network’s native token.
• Pro Rata Rewards: The remaining portion of the fee is distributed daily to operators who maintain at least 8 hours of uptime in a 24-hour period. This encourages consistent node availability and network reliability.

3. Ensuring Network Sustainability: These changes will help the Truth Network to:

• Scale sustainably, with node pricing that remains aligned with market value.
• Attract new node operators by offering competitive daily rewards tied to network usage.
• Maintain a healthy token economy via regular fee burning.

Proposed Changes

1. Whitepaper Amendment — Node Pricing

• Current Model: Price of a node increases by $10 after every 100 nodes sold.
• Proposed Model: Price of a node increases by $100 after every 100 nodes sold.
• Effective Date: Upon the completion of 15,000 nodes onboarded.

2. Whitepaper Amendment — Gas Fee Structure

• Current Model: $0.05 gas fee per transaction (burned).
• Proposed Model:
• 1% transaction fee, with a floor of $0.10 and a ceiling of $0.50.
• $0.05 is burned per transaction.
• The remainder of the fee is distributed to node operators pro rata based on maintaining at least 8 hours of node uptime in the past 24 hours.
• Effective Date: Upon the completion of 15,000 nodes onboarded.

Implementation Details

• Network Update: A network upgrade will be initiated to incorporate these changes into the node purchase process and the transaction fee calculations.
• Network Promotion: Once voting is completed and if the proposal passes, the new logic will be promoted from the test environment to the main network once 15,000 nodes are onboarded.
• Distribution Mechanics: Node uptime will be monitored based on heartbeat checks. Any node meeting the requirement of at least 8 heartbeats (i.e., 8 hours) in a 24-hour period will receive a proportional share of the total fees (minus the $0.05 burned per transaction). Distribution will occur daily.

Voting Process

• Voting Period: The vote will open at 00:00 PST on Monday, April 14th 2025, and close at 23:59 PSTon Wednesday, April 16th 2025.
• Eligibility: Each active node is entitled to one vote. Node owners can vote by logging into their account at blockchainfactory.io.
• Participation Requirement: At least a majority of eligible nodes must cast a vote for the result to be valid (quorum).