Telegraph vs. Bittensor: Node Comparison for Investors
This section compares Telegraph and Bittensor, focusing on fees, rewards, and earnings potential to help investors evaluate the benefits of running a node. All rewards and fees for Telegraph are in wTAO.
Fee Structures
Telegraph
Cross-Chain Message Fee: 0.0025 wTAO per message
Subnet Message Fee: 0.003 wTAO per message
Fee Distribution: Fees are collected in wTAO and distributed equally among all nodes (e.g., 99 nodes).
Bittensor
Network Fees: Based on computational resource usage, paid in TAO tokens. Exact fees vary, but validators earn a fixed reward.
Fee Distribution: Validators earn approximately 0.5 wTAO per day from block rewards, while miners earn based on computational contributions.
Rewards and Emissions
Telegraph
Rewards: Paid in wTAO from fees collected; no new token minting.
Fee Collection: 0.0025 wTAO per cross-chain message and 0.003 wTAO per subnet message.
Distribution: Fees are split equally among all nodes.
Bittensor
Token: TAO
Block Reward: 1 TAO per block (12-second block time), halving every 4 years
Max Supply: 21 million TAO tokens
Distribution: Rewards are distributed to validators and miners, with validators earning a consistent ~0.5 wTAO/day.
Fee Splits
Telegraph
Message Fees: Split equally among all nodes. For example, with 100,000 cross-chain messages per day, the total fee pool is 250 wTAO/day (0.0025 wTAO/message × 100,000), split among 99 nodes = ~2.525 wTAO/node/day.
Bittensor
Fee Split: Validators earn a fixed ~0.5 wTAO/day from block rewards, while miners’ earnings depend on computational contributions.
Comparison Table
Cross-Chain Fee
0.0025 wTAO/message
N/A
Subnet Fee
0.003 wTAO/message
N/A
Daily Reward
Scales with transaction volume
~0.5 wTAO (validators)
Reward Type
wTAO from fees
TAO from block rewards
Fee Split
Equal among nodes
Validators + miners (variable)
Earnings Potential: Month 25 Example
Assuming 100,000 cross-chain transactions per day in month 25:
Daily
2.525
0.5
Monthly
75.75
15
Yearly
921.625
182.5
Note: Earnings are from cross-chain fees only. Subnet fees would further increase Telegraph node earnings.
Graphs
1. Daily wTAO Earnings over 24 Months
Scenario: Transaction volume grows linearly from 10 to 100,000 per day over 720 days.
Telegraph Node: Starts at ~0.000253 wTAO/day, rises to ~2.525 wTAO/day.
Bittensor Validator: Constant at 0.5 wTAO/day.
Crossover Point: ~Month 4.7 (19,800 transactions/day).
Telegraph earnings increase linearly, surpassing Bittensor’s flat line around month 4.7
2. Cumulative wTAO Earnings over 24 Months
Telegraph Node: Reaches ~636 wTAO by month 24.
Bittensor Validator: Reaches 360 wTAO by month 24.
Insight: Telegraph nodes outpace Bittensor validators as transaction volume grows.
Telegraph’s curve accelerates upward, while Bittensor’s is a straight line.
3. Payouts in Month 25 (100,000 tx/day)
Daily: 2.525 wTAO/node
Monthly: 75.75 wTAO/node
Yearly: 921.625 wTAO/node
Bar chart showing daily, monthly, and yearly earnings for a Telegraph node.
Why Invest in a Telegraph Node?
Scalability: Earnings grow with network usage, unlike Bittensor’s fixed rewards.
High Potential: At 100,000 transactions/day, Telegraph nodes earn over 5x more daily than Bittensor validators.
Long-Term Value: As transaction volume increases, Telegraph nodes offer superior profitability, making them an attractive investment for those betting on network growth
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