Firo masternode prices hosting increases from $5 to $10 per month with AllNodes (basic plan)!
No explanation can justify such an increase: it is simply racketeering!
As I write this, Firo is worth $1.50, so hosting for $10 will work out to 6.67 Firos per month. A masternodes allows you to earn 13.25 Firo per month (source : masternodes.online). So, hosting costs half of what the masternode brings in: it’s a real racket!
I imagine I’m not the only one who is very unhappy with AllNodes on this point: do you have any alternative solutions?
I have several Firos masternodes, if the price of Firo will not rise up between now and the next halving, it’s very simple, hosting at AllNodes will cost 100% of what the masternodes bring in: you might as well cut all the masternodes.
I think it is a real problem for the long-term viability of Firo.
This should have happened years ago. I was told a huge percentage of nodes are through them which means it’s centralized. I get you’re going to lose money, but most of us hosting actually decentralized nodes have been losing money for years because there are too many node hosters. Things should balance out for the rest of us, so I support what’s happening.
I think what you are describing is a ‘Doomloop Lite’ scenario.
Lower Firo prices has greatly increased relative costs.
Lower yields, increases selling incentive and reduces investment incentive.
Increased selling and decreased buying lowers prices.
Rinse and repeat.
Good thing there IS other easy hosting providers out there that are cheaper, although I don’t think many people know of them compared to allnodes.
Imo, I think we should have the ability to have higher collateral nodes. Hell, make it possible to host a 1K, 2K, 3K, 4K, & 5K Firo node that pays out 5x more than a 1K masternode. 1K masternodes are not excluded, but they have incentive to ‘upgrade’ their node to achieve better yields.
I have to disagree with your ‘racketeering’ conclusion on the Allnodes pricing. It is unfortunate that they had to increase their prices but it is inevitable when networks start to grow (which is a good thing). I was running a few nodes (Advanced plan) and for 6 months I was getting more and more PoSe scores (which shouldn’t happen - especially with advanced plans). Allnodes looked at the issue and determined that Firo nodes have gradually started to use more and more resources (CPU and memory) that the servers they were using could not keep up. This would be true for people self hosting as well. This is normal and to be expected when a coin has more usage as Firo has with additional traffic and resource requirements due to the Spark upgrade and Instasend etc. I’ve downgraded my nodes to Basic (which I didn’t want to do - but the alternative is to move to another service or self host - which I don’t have time to do). Obviously there will be more thought about where and/or whether to host after the halving - but just like mining - there will be people who stop hosting when it’s less profitable - leaving more for the rest of the people who continue to host - and as Reuben has said in the Telegram channels recently - even if the number of nodes goes down from 4000 to 2000 the network will still be secure (and basically you will make the same amount after the halving if there are half as many active nodes - basic supply-and-demand economics).
As for alternative solutions - there are other node hosting services available - but I’m sure they will have to put their rates up soon as the network demands increase. Let’s not forget - the node rewards are there as an incentive to host - not to make you rich - and we’ve been pretty lucky up until now with Firo nodes that it has been somewhat profitable.
While that is true. Assuming that the people who stop hosting start selling. It would mean 2 million coins being sold off. If price declines further, more and more nodes start running at a loss. Either people pause hosting, eat the loss or sell their coins. More supply hits the market.
After the halving, a lot of coins will be sold. No doubt about it. Ideally though, if possible it would be great to limit this event as much as possible.
Of course in the longer term, less coins are printed which will add support, assuming nominal scarcity isn’t offset by declining demand.
My experience with AllNodes is very different of yours.
I have hosted FIRO nodes with them since their beginnings and I have only had POSES twice that were different from 0. Their servide quality is excellent, no doubt about it and no need to increase it with investments likely to justify a price doubling.
As for the server load, I don’t know if the CPU load has increased, but what is certain is that the disk size has been divided by 10 or 20 when updated a few years ago, and disk space was what was the more expensive when I hosted myself my masternodes with VPS.
As for the motivation to host a masternode, financial profitability is the best way to ensure investor loyalty.
Finally, I find very dangerous the argument about being able to move to 2,000 Masternodes while being secure in order to justify doubling the remuneration of masternodes. This notion of security depends entirely on the assumptions made about security and other assumptions could conclude that 10,000 masternodes are necessary to ensure the Firo security. As a community, we must hope that FIRO experiences the greatest possible diffusion, therefore as many masternodes as possible and not the opposite.
I will say, that allnodes increasing pricing is a good thing for some decentralisation. Everyone was previously upset with 2miners not increasing their fees to encourage decentralisation.
However if I was them, I would have done it much more gradually, which I think they said they were originally intending to do that.
I don’t think it has much to do with Firo itself. Pretty sure as you say, HDD requirements are minimal. Also I imagine you can run multiple node coin projects on one server/IP to save costs.
However if you are on basic plan, you will see they are based in Germany. Energy isn’t cheap in Germany anymore. I imagine allnodes service providers have passed costs onto allnodes and allnodes has passed those on to us. At current Firo prices, those extra costs are tough to bear.
To be precise, allnode servers are not only based in Germany.
Currently, I have somes masternodes hosted in Germany and some others in Finland (allnode basic plan). Previously there was others counties and I don’t konw if it allways the case. And yes advanced plan are still in others countries.
Allnode have servers in many countries: it is one of the points that the pseudo “allnode centralisation” is not so problematic as some think so.
I think most people use the basic plan.
By my stats less than 10% are hosted outside of Germany on basic plan. Also energy costs have risen EU wide regardless. It was just there used to be a pipeline of cheap energy going directly into Germany that is no longer there. In 2022 energy costs increases looked like a Bitcoin chart from the early days. Energy bills were a huge problem for many companies. Prices have reduced a lot but still remain elevated somewhat.