DFINITY Foundation

Synapse.vote (original)

ICDevs.org

CryptoIsGood

Anvil

ICPL.app

ysyms

The Accumulators’ Neuron

RawTech Venture

Paul Young

ICPMANUAL

8yeargangDAO

Isaac Valadez

Krzysztof Żelazko

Nicolas.ic

Smaug’s Neuron for Retail Investors

ICLight.io

Synapse.vote (NEW)

Taggr Network

CodeGov

Sonic AMM

Rakeoff.io

OpenChat

ELNA AI

GEEKFACTORY

ICP Hub México

ICP Hub Poland

Jerry Banfield

WaterNeuron

ICP Hub Bulgaria

Gold DAO

NeuronPool

LORIMER

B3Pay

ZenithCode

Aviate Labs

D-QUORUM

Yuku AI

Cosmicrafts

Arthur’s Neuron (used to be cycle_dao)

Inactive (Request Removal) - The Fools' Court

$STACK

Always Rejects

John Wiegley

Please refer to the summary of the proposal for the contents of the motion.

## Summary

As the Internet Computer (IC) continues efforts to decrease rewards for Gen-1 nodes (as outlined in [Proposal #132553](https://dashboard.internetcomputer.org/proposal/132553)) and promote decentralization among Gen-1 Node Providers (NPs), it is important to consider the reward adjustments for NPs willing to relocate nodes to new countries that are currently unrepresented on the IC. This motion proposes a moderate increase in rewards for NPs who incur additional costs to relocate their nodes, thereby enhancing the decentralization of the IC.

## Background and Rationale

When Gen-1 and Gen-2 reward structures were initially defined, it was recognized that data center costs vary widely across regions. The current IC topology primarily consists of nodes in countries with stable and cost-effective data centers. However, adding new countries to the network enhances decentralization and mitigates systemic risks.

Relocating nodes to an unrepresented country imposes additional financial burdens on NPs, including:

1. **Higher data center costs** – Most economical hosting locations are already occupied.
2. **Logistical and import costs** – Transporting and setting up nodes in a new country entails significant expenses.

To encourage and compensate for these efforts, this proposal suggests introducing **Gen-1.1 rewards**, providing a **10% increase** over the highest current Gen-1 reward value, specifically for nodes moved to new, unrepresented countries.

## Proposed Reward Structure

We propose a **Gen-1.1 reward value** that is **10% higher** than the highest Gen-1 reward value, with the following conditions:

- **Limited Timeframe:** This incentive applies only to relocations occurring as part of the Gen-1 to Gen-1.1 transition (Q4 2024 – Q1 2025).
- **Reduction from Original Gen-1 Rewards:** While this represents an increase from the latest Gen-1 rates, it remains **33% lower** than the original Gen-1 remuneration.
- **Eligibility Criteria:**
    - The new country must **not currently** have any Gen-1 or Gen-2 nodes as of **end of December 2024**.
    - The new country **must not be an EU member state**.
- **Reward Calculation:**
    - The highest existing Gen-1 reward value is **1,234 XDR**.
    - The proposed Gen-1.1 reward would be **1,357 XDR** for nodes relocated to qualifying new countries.

## Expected Benefits

- **Increased Decentralization** – Distributes nodes more evenly across different jurisdictions.
- **Improved Network Resilience** – Reduces dependency on specific regions.
- **Fair Compensation for NPs** – Encourages voluntary relocations by covering associated costs.

## Conclusion

By implementing a moderate reward increase, this proposal supports decentralization while ensuring that node providers are fairly compensated for expanding the IC’s geographical diversity. We encourage the community to vote in favor of this motion to strengthen the IC’s network and governance structure.

Motion proposal: Incentivizing Node Relocation to Increase IC Decentralization