# RFC: Adjustment of Altair collator rewards **URL:** \ **Category:** Proposals\ **Tags:** jan, 2023\ **Created:** [January 18, 2023, 6:21pm UTC](https://gov.centrifuge.io/t/rfc-adjustment-of-altair-collator-rewards/5034 "2023-01-18T18:21:56Z")\ **Posts on this page:** 19\ **Page:** 1
**Author:** ![pmensik](https://dub1.discourse-cdn.com/flex013/user_avatar/gov.centrifuge.io/pmensik/32/2032_2.png) [@pmensik](https://gov.centrifuge.io/u/pmensik)\ **Post date:** [January 18, 2023, 6:21pm UTC](https://gov.centrifuge.io/t/rfc-adjustment-of-altair-collator-rewards/5034/1 "2023-01-18T18:21:57Z")
Hello, I am creating this RFC based on the [discussion](https://gov.centrifuge.io/t/adjustment-of-altair-collator-rewards/4844) that we were having over the course of last month. The purpose of this RFC is to adjust the monthly collator reward so it can at least meet the operational costs of the professional node operator. Currently, the monthly reward is around $25 and we suggest increasing it to $125 which translates into 12,000 AIR tokens monthly. This price is a result of a survey that was conducted between collators in the aforementioned post and its result can be seen in this [sheet](https://docs.google.com/spreadsheets/d/1xX1-Lp6zomKSXhoxqNL-fgvFW1jJwF5koWt4lYTMRVc/edit#gid=0). As a professional node operator, we consider this price to be a bare minimum for providing long-term, high-quality service that project like Altair definitely deserves. Any comments and suggestions on this topic are more than welcome and we look forward to the discussion with the council 🙂 ---
**Author:** ![n1trog3n](https://dub1.discourse-cdn.com/flex013/user_avatar/gov.centrifuge.io/n1trog3n/32/1299_2.png) [@n1trog3n](https://gov.centrifuge.io/u/n1trog3n)\ **Post date:** [January 18, 2023, 6:45pm UTC](https://gov.centrifuge.io/t/rfc-adjustment-of-altair-collator-rewards/5034/2 "2023-01-18T18:45:29Z")
I support your proposal, since in any scenario at least the node itself should pay off. The price you’ve announced is fair. ---
**Author:** ![Validatrium](https://dub1.discourse-cdn.com/flex013/user_avatar/gov.centrifuge.io/validatrium/32/1310_2.png) [@Validatrium](https://gov.centrifuge.io/u/Validatrium)\ **Post date:** [January 18, 2023, 7:08pm UTC](https://gov.centrifuge.io/t/rfc-adjustment-of-altair-collator-rewards/5034/3 "2023-01-18T19:08:11Z")
Let’s start. We support your proposal too! ---
**Author:** ![devin](https://dub1.discourse-cdn.com/flex013/user_avatar/gov.centrifuge.io/devin/32/2155_2.png) [@devin](https://gov.centrifuge.io/u/devin)\ **Post date:** [January 19, 2023, 2:24am UTC](https://gov.centrifuge.io/t/rfc-adjustment-of-altair-collator-rewards/5034/4 "2023-01-19T02:24:27Z")
+1 agreed. Think it’s fair not only given hard costs but time spent, expertise, etc in having reliable collators. ---
**Author:** ![pathrock](https://dub1.discourse-cdn.com/flex013/user_avatar/gov.centrifuge.io/pathrock/32/224_2.png) [@pathrock](https://gov.centrifuge.io/u/pathrock)\ **Post date:** [January 19, 2023, 5:50am UTC](https://gov.centrifuge.io/t/rfc-adjustment-of-altair-collator-rewards/5034/5 "2023-01-19T05:50:53Z")
yeah, in full support of the proposal, thanks for putting this up ---
**Author:** ![Ilhan](https://avatars.discourse-cdn.com/v4/letter/i/df788c/32.png) [@Ilhan](https://gov.centrifuge.io/u/Ilhan)\ **Post date:** [January 19, 2023, 9:06am UTC](https://gov.centrifuge.io/t/rfc-adjustment-of-altair-collator-rewards/5034/6 "2023-01-19T09:06:46Z")
Thanks for putting this together @pmensik. I understand this translation of 12000 AIR coming from current costs and it makes full sense to get reimbursed at least for the costs. The other side of it is the growing power imbalance between users and collators as we are dealing with a PoS / Governance activated network. Are we still aiming for current treasury proposals ? And should we set a time limit to review these numbers again ? ---
**Author:** ![pmensik](https://dub1.discourse-cdn.com/flex013/user_avatar/gov.centrifuge.io/pmensik/32/2032_2.png) [@pmensik](https://gov.centrifuge.io/u/pmensik)\ **Post date:** [January 19, 2023, 9:25am UTC](https://gov.centrifuge.io/t/rfc-adjustment-of-altair-collator-rewards/5034/7 "2023-01-19T09:25:48Z")
I wouldn’t say it’s creating an imbalance, it’s simply a network paying for a service (in this case, liveness of a parachain). As mentioned in the proposal, this RFC won’t create any profit for collators, it’s just merely to cover the costs. Yes, automation of the rewards on Altair will probably take months to come so this is the only way. And yes, I suggest we should adjust the AIR amount every three months. ---
**Author:** ![Rhano](https://dub1.discourse-cdn.com/flex013/user_avatar/gov.centrifuge.io/rhano/32/1014_2.png) [@Rhano](https://gov.centrifuge.io/u/Rhano)\ **Post date:** [January 19, 2023, 9:26am UTC](https://gov.centrifuge.io/t/rfc-adjustment-of-altair-collator-rewards/5034/8 "2023-01-19T09:26:19Z")
I think this is a fair and reasonable proposal and the amount is realistic - I would vote in favor of this in the council. > [@Ilhan](#): > > Are we still aiming for current treasury proposals ? Until the [Collator Cycle](https://gov.centrifuge.io/t/cp6-gi-add-a-block-reward-and-improve-collators-cycle/4841) proposal is implemented on Altair as well (automatic payment of rewards from the Altair Treasury), the monthly collator rewards will be made as individual Treasury Proposal. > [@Ilhan](#): > > And should we set a time limit to review these numbers again ? Yes, I think this is a very good idea @Ilhan. We obviously don’t know how the market is going to behave the coming months, but I would personally suggest to review the amount again in around 4 months time. ---
**Author:** ![Ilhan](https://avatars.discourse-cdn.com/v4/letter/i/df788c/32.png) [@Ilhan](https://gov.centrifuge.io/u/Ilhan)\ **Post date:** [January 19, 2023, 10:15am UTC](https://gov.centrifuge.io/t/rfc-adjustment-of-altair-collator-rewards/5034/9 "2023-01-19T10:15:18Z")
Ok clear! @Rhano This would be a text proposal, but would it be just a public proposal, or would it need to pass as a motion first? ---
**Author:** ![Rhano](https://dub1.discourse-cdn.com/flex013/user_avatar/gov.centrifuge.io/rhano/32/1014_2.png) [@Rhano](https://gov.centrifuge.io/u/Rhano)\ **Post date:** [January 19, 2023, 10:39am UTC](https://gov.centrifuge.io/t/rfc-adjustment-of-altair-collator-rewards/5034/10 "2023-01-19T10:39:05Z")
It would be neither right now - they would be created directly as Treasury Proposals (but they do appear as five separate Council Motions that the councillors would need to vote on). That’s why it is important to get the Altair Council involved in this proposal as they are the only ones who will determine the outcome of this proposal. If the Treasury Proposals fail, the submitter would also forfeit their self-bond. Anyone can create these proposals but @Ash has been doing it so far. ---
**Author:** ![ImdioR](https://dub1.discourse-cdn.com/flex013/user_avatar/gov.centrifuge.io/imdior/32/1011_2.png) [@ImdioR](https://gov.centrifuge.io/u/ImdioR)\ **Post date:** [January 19, 2023, 11:03am UTC](https://gov.centrifuge.io/t/rfc-adjustment-of-altair-collator-rewards/5034/11 "2023-01-19T11:03:56Z")
> [@Ilhan](#): > > The other side of it is the growing power imbalance between users and collators as we are dealing with a PoS / Governance activated network. Hi Ilhan I think that what you described will happen for sure. AIR trading volume is very low on exchanges. With X5 increasing the AIR price will drop (more sellers than buyers) more and more. ---
**Author:** ![pmensik](https://dub1.discourse-cdn.com/flex013/user_avatar/gov.centrifuge.io/pmensik/32/2032_2.png) [@pmensik](https://gov.centrifuge.io/u/pmensik)\ **Post date:** [January 19, 2023, 11:13am UTC](https://gov.centrifuge.io/t/rfc-adjustment-of-altair-collator-rewards/5034/12 "2023-01-19T11:13:29Z")
I can’t speak for other collators but I don’t personally plan to immediately sell AIR after the payout - actually I have sold only once so far. ---
**Author:** ![TheMarcus](https://dub1.discourse-cdn.com/flex013/user_avatar/gov.centrifuge.io/themarcus/32/187_2.png) [@TheMarcus](https://gov.centrifuge.io/u/TheMarcus)\ **Post date:** [January 19, 2023, 2:51pm UTC](https://gov.centrifuge.io/t/rfc-adjustment-of-altair-collator-rewards/5034/13 "2023-01-19T14:51:14Z")
We at Good KarMa support @pmensik’s proposal as well. Thank you for putting it together and pushing it forward. ---
**Author:** ![Tjure07](https://dub1.discourse-cdn.com/flex013/user_avatar/gov.centrifuge.io/tjure07/32/1039_2.png) [@Tjure07](https://gov.centrifuge.io/u/Tjure07)\ **Post date:** [January 27, 2023, 11:45am UTC](https://gov.centrifuge.io/t/rfc-adjustment-of-altair-collator-rewards/5034/14 "2023-01-27T11:45:14Z")
Ahoj Petr. I second your proposal and agree with the amount of tokens being proposed because they seem to fairly compensate the work and effort of running a collator node taking the feedback from other collators into consideration. I recommend to keep an eye on the token price in the coming months- in case it fluctuates too heavily - until the block rewards proposal has been implemented. ---
**Author:** ![pmensik](https://dub1.discourse-cdn.com/flex013/user_avatar/gov.centrifuge.io/pmensik/32/2032_2.png) [@pmensik](https://gov.centrifuge.io/u/pmensik)\ **Post date:** [January 28, 2023, 10:03pm UTC](https://gov.centrifuge.io/t/rfc-adjustment-of-altair-collator-rewards/5034/15 "2023-01-28T22:03:37Z")
Ahoj, yes, that’s the plan - re-evaluate the token price every 90 days so we can adjust according to the market conditions. ---
**Author:** ![pathrock](https://dub1.discourse-cdn.com/flex013/user_avatar/gov.centrifuge.io/pathrock/32/224_2.png) [@pathrock](https://gov.centrifuge.io/u/pathrock)\ **Post date:** [February 1, 2023, 1:55pm UTC](https://gov.centrifuge.io/t/rfc-adjustment-of-altair-collator-rewards/5034/16 "2023-02-01T13:55:31Z")
yeah exactly the same situation here. Hodling the ALTAIR I’ve received so for for being a collator ---
**Author:** ![The\_Phunky\_One](https://dub1.discourse-cdn.com/flex013/user_avatar/gov.centrifuge.io/the_phunky_one/32/3288_2.png) [@The\_Phunky\_One](https://gov.centrifuge.io/u/The_Phunky_One)\ **Post date:** [February 2, 2023, 3:11pm UTC](https://gov.centrifuge.io/t/rfc-adjustment-of-altair-collator-rewards/5034/17 "2023-02-02T15:11:31Z")
Hello! First and foremost, I apologize for not responding to this sooner than today. I appreciate you taking the initiative to formalize this, especially after @pathrock initiated the discussion on the December community call. The Lucky Friday team also agrees that this would be a suitable arrangement to make our operations sustainable. We also do not foresee selling any AIR to avoid the sell pressure this produces, and we also agree with the amount being reviewed every 90 days for adjustments. With regard to the governance weight the AIR would provide, perhaps we can work with the Altair Council members to ensure fairness when voting on proposals, etc. ---
**Author:** ![Rhano](https://dub1.discourse-cdn.com/flex013/user_avatar/gov.centrifuge.io/rhano/32/1014_2.png) [@Rhano](https://gov.centrifuge.io/u/Rhano)\ **Post date:** [February 21, 2023, 3:58pm UTC](https://gov.centrifuge.io/t/rfc-adjustment-of-altair-collator-rewards/5034/18 "2023-02-21T15:58:31Z")
We have received feedback from the Altair councilors about your proposal to increase the monthly rewards and so far there is a consensus to increase the monthly amount to 12,000 AIR per collator. The next five Treasury proposals for the January rewards will be with your proposed amount and we will revise the numbers again in 3 months time. ---
**Author:** ![TheMarcus](https://dub1.discourse-cdn.com/flex013/user_avatar/gov.centrifuge.io/themarcus/32/187_2.png) [@TheMarcus](https://gov.centrifuge.io/u/TheMarcus)\ **Post date:** [May 29, 2023, 8:39pm UTC](https://gov.centrifuge.io/t/rfc-adjustment-of-altair-collator-rewards/5034/19 "2023-05-29T20:39:56Z")
I noticed that currently 12,000 AIR tokens equates to about $82 USD right now. Below the $125 we decided upon by about 35%. Do we want to discuss a reward adjustment? I’d be curious to get your thoughts @pmensik.