In the past few months, a new trend has emerged in the Web3 space—most of you have likely heard about or encountered node sales from projects like Carv, Aethir, XAI, or Sophon.
We’d like to dive deeper into why node sales have become so popular, but first, let’s look at what nodes are.
A node is simply a server connected to a blockchain that performs specific tasks continuously. In essence, the computing power of this device helps maintain the network’s security by performing operations such as validating or relaying transactions and participating in the consensus mechanism.
There are different types of nodes: some store the entire blockchain history, known as full nodes, while others rely on full nodes for transaction verification and are called light nodes. Additionally, some nodes can add new blocks to the blockchain, either by solving complex mathematical problems in Proof of Work (PoW) systems or by staking funds to participate in Proof of Stake (PoS) consensus.
In node sales, projects sell a set number of node licenses to the community. When a user purchases a license, they gain permission to set up a node at a future point, allowing them to validate legitimate transactions and broadcast them to the rest of the network, keeping the system updated.
The growing appeal of node sales is tied to a larger trend: launching an application-specific blockchain today is easier than ever. Thanks to Arbitrum Orbit, Optimism Superchain, and Rollup-as-a-Service (RaaS) solutions like Conduit, projects can now launch their own chain in as little as 15 minutes. This ease is comparable to how projects were rapidly launching ERC-20 tokens in 2018.
However, while launching a blockchain has become significantly easier, maintaining it—and ensuring decentralization—is a much more complex challenge. For decentralized networks to thrive, nodes need to be distributed across a broad and diverse community: this is where node sales come into play. Projects sell node licenses, giving users the rights to run these nodes.
Running a node requires specific hardware, a reliable internet connection, and technical knowledge to validate transactions and update the ledger. These requirements can be a barrier for many users. This is where Node-as-a-Service (NaaS) solutions have grown in popularity, allowing users to delegate their licenses to providers who operate the nodes for a fee, often with just a single click. Some companies also issue fractional shares of node ownership, lowering the entry cost for users, though this can reduce decentralization since the node license remains with the provider.
But what’s in it for users who invest in licenses and run nodes? By doing so, they contribute to the project’s growth, increase network security, and enhance decentralization. In return, they are rewarded with mining incentives—a portion of the token distribution set aside for node operators. However, since rewards are finite, the more operators there are, the smaller the share each one receives.
It’s also common for these rewards to be subject to lock-ups, meaning users can’t sell them immediately and must wait for a period—typically between 3-6 months. Some projects allow early withdrawals, but users may face penalties in the form of reduced rewards.
When considering the opportunity of a node sale, users should pay close attention to these details. Our next blog entry will analyze node performance and offer guidelines on what to consider—so stay tuned! But as a rule of thumb, it’s important to understand the potential rewards.
Users must first cover the cost of the node license and, if they don’t delegate, also factor in the cost of running the node, including any hardware purchases. The breakeven point is reached when the rewards from running the node exceed these costs, which depends on two main factors: the number of operators sharing the daily rewards and the price of the project’s token. Users should also consider the time value of rewards if vesting schedules or lock-ups are involved.
So why should users consider node sales over traditional token sales?
There are several factors. First, node sales typically allocate a higher percentage of tokens to the community. While token sales might only distribute 5-10% of tokens to the public (and 20-25% to VCs), node sales often reserve at least 15% for node operators, who receive these tokens as mining incentives over time. This tends to place more tokens in the hands of users with a vested interest in the long-term success of the project. Additionally, since node rewards often have lock-ups or vesting conditions, the initial selling pressure on the token is lower than in token sales. While this might reverse when the lock-up ends, by then the project should ideally be generating revenue, which can balance the selling pressure.
Moreover, early adopters of node sales are usually prioritized for discounts, airdrops, or other exclusive benefits.
However, node sales can also be complex and risky. They often target high valuations, and if a sale is unsuccessful, the project’s long-term viability—and the token price—may be affected. Node licenses are typically non-tradable for a few months, so users might end up with unprofitable nodes, hoping to avoid a total loss. Conversely, if a sale is too successful, the reward pool is split among more operators, reducing profitability and delaying the breakeven point.
Another potential issue is decentralization. While more nodes theoretically mean more decentralization, this may not be true if a few actors acquire many licenses or if most users delegate to the same providers. In extreme cases, many providers might even rely on the same execution client or cloud services like AWS, creating single points of failure.
That said, node sales are proving to be an innovative and viable alternative to traditional token launches. The current year has seen renewed interest in node sales, with projects like Aethir and XAI raising tens of millions of dollars. While node sales do come with inherent risks, they remain a promising avenue for those looking to support decentralized networks and earn rewards. The key lies in carefully analyzing the project’s fundamentals—whether it’s the reward schedule, the number of node operators, or the project's overall market potential. One of the best ways to mitigate these risks is by ensuring that the project is guided by reputable advisors.
At Nova, we understand the complexities of structuring node sales effectively. We are currently advising several projects set to launch in the in the coming weeks, working closely with these teams to ensure their reward distribution and pricing models are both fair and sustainable. We aim to create a win-win scenario where node operators benefit from their contributions, and projects are able to foster strong, dedicated communities right from the start.
We’ll soon publish our research on the latest node sales, along with helpful tips for users evaluating these opportunities.
Stay tuned!
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