$EARNM SmartNode Tokenomics, Benefits & Emission

Written by

Kate Vols

Date published

October 1, 2024

About $EARNM’s DePIN & SmartNode Ecosystem

EARN’M is transforming the Smartphone into the EarnPhone, with a community of over 45 million Web2 users and 10M Web3 UAW. The team behind EARN’M has been recognized as Deloitte's Fast 500 #1 Fastest Growing Software Company in North America, achieving a remarkable 32,481% revenue growth, surpassing notable Web3 companies like Dapper Labs.

Decentralization via SmartNodes:

For those curious about SmartNodes, this article will explain what they are and how EARN’M leverages their capabilities to decentralize our ecosystem.

SmartNodes are the backbone of the EARN’M ecosystem, acting as cloud-based EarnPhones that validate users and transactions through the EARN’M SmartWallet. By acquiring a SmartNode, you play a vital role, alongside 45,000 others, in validating user decisions across millions utilizing EARNM's multi-chain & future Layer 2 solution.

By integrating EarnOS and the EARN’M SmartWallet, each day we create over 75,000 unique active wallets, leading to over 10 million users onboarded and more than $3 million in network revenue fees generated. Collectively, users have earned and saved over $325 million while spending 18.6 billion minutes across 10,000+ different smartphone models.

SmartNode holders validate transactions and earn a percentage of DePIN rewards generated by every EarnPhone and EarnOS user within the ecosystem, from gaming to streaming, and more.

These activities account for over 5% of the total daily transaction volume on the Polygon network, showcasing the significant impact of EARN’M’s ecosystem.

Tokenomics

SmartNode holders receive approximately 15% of the total $EARNM rewards pool, reflecting their vital role in validating transactions and supporting the EARN’M ecosystem. By operating a SmartNode, you earn a share of the DePIN rewards generated by every EarnPhone and EarnOS user within the network.

Our tokenomics were strategically designed to reward our existing and future community while enticing early node adopters.

SmartNodes consist of both Fixed & Variable SmartNode Rewards.

• Fixed Rewards: SmartNode User Rewards Via (10% Node Airdrop)

EARNM dedicates a fixed 10% of the total $EARNM rewards pool to SmartNode holders through a node airdrop. By operating a SmartNode, you receive consistent rewards from this allocation, acknowledging your essential role in validating transactions and maintaining the network's infrastructure. You’ll unlock 20% at TGE, with the remaining 80% vested over 2 years through our DropBox asset (to claim the full amount, DropBox must be vested for the full 2 years)

• Variable Rewards: SmartNode User Rewards Via Mystery Box Burns (~5%)

SmartNode holders operating validator nodes earn variable rewards by validating Mystery Box burns within the EARN’M ecosystem. Each time a user burns a Mystery Box, these validator nodes process and verify the transaction. By providing this essential validation service, SmartNode operators receive a share of the dynamic reward pool generated from these activities, with rewards increasing alongside network activity and user engagement.

$EARNM's proprietary 'Fractal Box' protocol powers an automated vesting & distribution mechanism — promoting a 12-month holding period for users. When Mystery Boxes are prematurely opened, their contents are automatically distributed throughout the ecosystem, benefiting all of its participants.

Benefits for SmartNode Holders

Holders will benefit from SmartNodes through the following aspects:

• $EARNM Governance – 25% of voting rights and ~15% of the total $EARNM rewards pool
• Physical $EARNM Edition EarnPhone – Holders can opt to run EarnOS and claim their SmartWallet rewards faster while using this device, contributing to the network’s decentralized infrastructure (You are eligible for a free Physical EarnPhone when buying 3 nodes or more, maximum one per wallet.)

• $EARNM Airdrop – 10% of the $EARNM total supply will be distributed to SmartNode holders as an airdrop. With 20% unlock available at TGE through our dropbox technology. Dropbox assets have a 2-year vesting cycle associated with them.
• Rewards Pool Burns – Up to 30% of the $EARNM tokens allocated to Mystery Boxes will be distributed to SmartNode holders through the User-Generated Burn vesting schedule (UGB) process.
• Passive-Income Gas Rewards – Acting as validators, a portion of the $EARNM gas fees generated in our Layer 2 will be distributed to SmartNode holders, providing a continuous revenue stream. Additionally, SmartNodes can be staked to obtain early access to new Fractal assets and future rewards implemented by ecosystem partners.
• Crypto Club Lifetime Access – With over 2 million daily email opens, EARN’M Crypto Club has one of the largest curated Airdrop hunter communities in the world.
• Ability to Resell – SmartNodes are strategically positioned to generate enduring demand. Since SmartNodes are NFT assets, they can be easily traded.

SmartNodes Pricing Structure & Comps

• Starting FDV – $45M
• Maximum Supply – 45,000 SmartNodes
• $EARNM Token allocation for SmartNode holders – 15% of the total supply
• 10% allocated as an Airdrop.
• 5% estimated as variable rewards based on the User Generated Burn from Mystery Boxes.

Sale Structure

Unsold public nodes will be made available OTC to whitelist reseller partners & communities.

SmartNode Emissions Schedule

💡 These figures represent high-level estimates and are not adjusted for potential variations in reward rates that may occur before and after the Token Generation Event (TGE). The estimates are derived from average values and assumptions applicable to the network and current users of EarnPhone/EarnOS & the broader EARN’M ecosystem.

How to Purchase and Deploy Your SmartNode

We created this guide to run you through a simple step-by-step guide on how to purchase a SmartNode:

Step 1: Head over to https://www.earnm.com/smartnodes

Step 2: Connect your wallet through one of the wallet connect options.

Step 3: Switch to Arbitrum Network and make sure you have enough ETH in your wallet.

Step 4: Fill in the number of nodes you want to purchase and click “Review Order”

Step 5: Review your order details, put in the referral code (if you have one from your friend or one of our partners) and press the “Confirm Purchase” button.

EARN’M Roadmap

Over just the past few months, EARN’M has hit some amazing milestones! It now accounts for 5% of all transactions on the Polygon network, has generated 3 million $POL in revenue, and over 10 million unique wallets have interacted with its smart contracts—the growth shows no signs of slowing down!

Here’s a glimpse of important events coming next for EARN’M:

• ⛓️ SmartNode Whitelist Sale – October 1, 2024.
• ⛓️ SmartNode Public Sale – October 9, 2024.
• 🌐 SmartNode LaunchPads Sale – October 18, 2024.
• 🌐 Token LaunchPads Sale – October 24, 2024.
• 🚀 TGE Date – November 13, 2024 (Expected).
• 🤝 Proposed Merge with StormX -  expected between Dec 13, 2024 to Dec 19, 2024 Learn more about this here!

FAQ

• Where do most of the EARN’M user base come from?

The vast majority of EARN’M users come from using EarnOS. Either through EarnPhone or  EarnApp. This technology  enables anyone with an mobile device ( with a focus on Android ) to convert their smartphone into an EarnPhone, EarnApp has over 45,000,000 installs and 3.1M+ reviews.

• How Will the Fixed Airdrop Rewards Be Distributed?

$EARNM Airdrop rewards will be distributed to winners using our new DropBox collection, an upgrade of the asset our users love — the Mystery Box. This new collection was created using our Fractal Box protocol.

The $EARNM tokens are housed within the $EARNM DropBoxes. These user-friendly DropBoxes can be easily accessed through unique codes, which will be directly shared with the holders SmartNodes. Users can reveal their codes to access their DropBoxes on the EARN'M dApp at https://app.earnm.com.

Each user can redeem the $EARNM tokens inside their DropBoxes at any time.The total number of tokens will be subject to daily vesting for a period of up to two years.

• What are the differences between Mystery Boxes, DropBoxes, and $EARNM Token Rewards?

The main difference between DropBoxes and Mystery Boxes are their transferability; Dropboxes can be sold at any time. This allows for the creation of a secondary market to support the demand for these assets, including the $EARNM within their DropBox assets.

At any point in time, every user who wants to claim their $EARNM tokens by burning their DropBoxes will be allowed to do so, depending on the current vested value of their assets. However, if more value is sought, these boxes can be sold to other individuals willing to pay for the future unlocked value of the asset.

When Mystery Boxes are burned by their holders, SmartNode Holders receive $EARNM tokens directly.

• What Are The Terms & Conditions of the SmartNode Buy-Back Program?

To ensure the fullest protection of our community members' interests, we've established a comprehensive refund mechanism specifically for those who have purchased our Nodes

Refund Terms: This policy allows for a 100% refund of the initial purchase amount in $EARNM tokens for users who are dissatisfied for any reason. All Nodes purchased must be returned to qualify for the refund.

Refund Window: The opportunity to request a refund opens five months after the Token Generation Event (TGE). The exact length of this window will be communicated in advance of its opening.

100% Buyback Program Details: This program underscores our commitment to building a sustainable, user-owned network, enhancing participation and confidence through the '100% Buyback Program'.

Execution: The buyback will be executed with $EARNM within an OTCBox, providing 100% liquidity on day one in the secondary market. This ensures immediate accessibility and value retention for participants.

OTCBox Function and Vesting: OTCBoxes function as secure containers within which $EARNM transactions occur, ensuring that the tokens retain full liquidity from the moment they are placed on the secondary market. This mechanism allows Node holders to realize the value of their holdings immediately upon entering the buyback program. If the buyer chooses not to sell their tokens on the secondary market, tokens within the OTCBox will be subject to a 4-month vesting period, during which they are gradually released to the holder. This provides a steady transition and maintains market stability while supporting the liquidity of spot markets.

Eligibility and Definition of a Retail User: The buyback program is available to users who have not sold or transferred their Nodes, and who have not claimed a discounted physical EarnPhone. For the purposes of this policy, a 'retail user' is defined as anyone who has purchased fewer than 3 Nodes and purchased directly from our official SmartNodes Website. This definition supports individuals and small groups actively engaging with and contributing to the ecosystem by operating Nodes.

Reallocation and Utilization of Nodes: Some of the bought-back Nodes will be reallocated to existing active node operators to further incentivize their participation. The rest will be directed to the $EARNM treasury, with potential uses including sharing node operation rewards with $EARNM stakers, or conducting node resale or burning.

Funding: A total of 250,000,000 $EARNM tokens has been earmarked to support this buyback program, held securely to ensure the availability of funds for guaranteed refunds.

• How do SmartNodes operate? Is there a benefit to run the node with a NaaS?

To run a SmartNode, a holder needs to log into the SmartNode dashboard and verify ownership by confirming a transaction. Once verified, they can stake their SmartNodes to boost reward potential.

Holders can leverage our preferred Node-as-a-Service (NaaS) providers to operate their SmartNodes, either through their native platform or the SmartNode dashboard, offering an additional 10% staking benefit through partner-driven initiatives. Each NaaS will have its own SmartNode pool, rewarding users for their engagement.

The SmartNode dashboard will be hosted at https://earnm.com/smartnodes/login after the sale.

• What are Phases of SmartNodes?

Phase 1: Simplifying Onboarding and Validation (Multi-Chain)

Upon launch, we focus on simplicity to onboard a critical mass of users without complicated technical setups. During this phase, SmartNodes will:

• Validate Users and Transactions: Operate within both EARN’M’s Multichain Solution
• Enable Seamless Interactions: Allow platforms integrating EarnOS and the EARN’M SmartWallet to interact effortlessly across any EVM-compatible blockchain.
• Leverage Attention and Data: Users from partner platforms can use their attention and data to cover gas fees for on-chain transactions, making Web3 onboarding accessible to everyone.

Phase 2: Advancing Towards True Decentralization ($EARNM L2)

We are moving towards true decentralization. SmartNodes will become the foundation of EARN’M's Layer 2 technology, designed to subsidize Gas Fees: Use data and attention as currency to subsidize gas fees across any EVM-compatible blockchain.

• How does the bonus breakdown work?

A: Here's how the bonus applies based on the number of SmartNodes purchased:

• Buy 3 SmartNodes ➔ Get 1 free ➔ Total of 4 SmartNodes (25% bonus) + Free EarnPhone
• Buy 6 SmartNodes ➔ Get 2 free ➔ Total of 8 SmartNodes (25% bonus) + Free EarnPhone
• Buy 9 SmartNodes ➔ Get 3 free ➔ Total of 12 SmartNodes (25% bonus) + Free EarnPhone

Note: The free EarnPhone is limited to one per wallet, regardless of the number of SmartNodes purchased.

• Can I get multiple free EarnPhones if I purchase more SmartNodes?

A: No, regardless of how many SmartNodes you purchase, the free $EARNM Edition EarnPhone is limited to one per wallet.