Archive Node Incentives

The Storage Challenge

High message throughput creates a storage scaling challenge. At maximum capacity, yearly data growth can reach ~84 TB—far beyond what traditional "store everything" archive nodes can handle.

Traditional answer: "Full nodes store everything out of altruism."

Obsidian's answer: Sharded archives and dedicated incentives.

Incentivizing Archives

Message data grows forever, so archival storage needs durable incentives.

The chain configuration includes fee share parameters for future distribution:

Parameter
Value
Purpose

proposerFeeShare

30%

Block proposer's share of PM fees

laneLeaderFeeShare

20%

Lane leader's share of PM fees

archiveFeeShare

50%

Archive pool's share of PM fees

archivePoolAddr

Set

Well-known archive pool address

Current status: PM bids are burned in the current implementation. Fee distribution to proposers and archive pools will be enabled in a future upgrade.

Why Dedicated Archive Incentives?

Archives are essential because:

  • Storage costs scale with usage

  • Serving historical queries consumes bandwidth and CPU

  • Operators need predictable incentives to provide high-availability data

Economics (Conceptual)

Any long-term archive incentive mechanism should:

  • Scale with message volume

  • Reward storage and query-serving reliability

  • Avoid centralizing data availability

Archive Incentive Mechanism

The specific mechanism (e.g. an on-chain pool, direct payouts, or other designs) is implementation-defined and may change.

Registration Requirements

To earn archive rewards, nodes must:

Requirement
Purpose

Stake deposit

Skin in the game, slashing collateral

Store assigned data

Actually have the messages

Serve queries

Respond to historical requests

Maintain uptime

Be available when needed

Slashing Conditions

Archive nodes can lose stake for:

  • Failing to serve data they're responsible for

  • Extended downtime

  • Serving incorrect/corrupted data

This ensures the pool rewards go to nodes that actually provide value.

Full vs Sharded Archives

Obsidian solves storage scaling with sharded archives: instead of every archive storing all history, nodes store specific epoch ranges:

Type
Storage
Rewards
Hardware

Full Archive

All history

Full share

High (TB+)

Sharded Archive

Epoch range

Proportional

Lower

How it works:

  • Epoch ranges: History is divided into epoch ranges (e.g., 1000 epochs per shard)

  • Shard groups: Multiple nodes store the same range for redundancy

  • Node assignment: Archive operators are programmatically assigned based on current network needs

  • Proportional rewards: Nodes earn rewards proportional to their coverage, uptime, etc.

This architecture enables:

  • Accessible participation: Run an archive with consumer hardware by storing a subset of history

  • Horizontal scaling: More epoch ranges served by adding shard groups

  • Redundancy: Multiple nodes per shard group ensures availability

See Sharded Archive Nodes for the sharding model.

Flywheel Effect

The economics create a positive feedback loop:

spinner

Why This Matters

Most blockchains treat archival as an afterthought. "Someone will run a full node."

Obsidian treats it as essential infrastructure with proper economic incentives:

  • Predictable revenue for operators

  • Sustainable model as usage grows

  • Aligned incentives between users and infrastructure

The goal is that message activity ultimately funds the permanent storage that makes Obsidian's promise real.


Next: Sharded Archive Nodes - Scaling storage across many operators

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