One of the most popular articles in the IP Address Guide at the moment is the article dealing with Thor Financial. Many people come to find information about the project and whether it should be considered a good and a safe investment, or not! A few days ago, Thor Financial decided to modify its reward levels once again, and this caused quite a stir in the community. Below you can see a comparison showing the present rewards and the new rewards that will come to life in February and the start of March in 2022.
Many people have complained about the new rewards and the logic is clear.
- If I bought a Thor node costing 12,5 THOR in on January 25th, then it will no longer take 38 days for me to get the initial investment in return, but instead, it will take 86 days (truth be told, a little bit less, because they will enjoy the present day rewards until February 14th).
They are sad that it will take a longer time to get their initial investment in return or to possibly compound the rewards into an additional node. This is logical, and it would be “true” if you only count the value of THOR in that currency.
But, if you also look at the aspect of the THOR token having a Dollar value, then it changes.
When you create a new project, you jump into unknown territory and you don’t know exactly what to expect. That was quickly discovered by Thor Financial as they quickly noticed that the initial reward level was TOO high. This led to a reward decline on January 1st, 2022. But, as the protocol grew even more popular, and especially the Odin nodes, the number of tokens earned daily in rewards made the protocol unsustainable. This would either cause the protocol to collapse, or it would cause such a sell pressure that would make the price collapse.
In the end, you wouldn’t be too happy in a couple of months if you finally earned your invested 12,5 THOR tokens, only to discover that they are only worth $200, and not the $2500 that you invested initially.
This is the challenge of a new protocol, to find a healthy level between rewarding the community and the investors, and at the same time, making it sustainable.
One more change – monthly node fees
They have also added a monthly fee that has to be paid for the different nodes. The more expensive the node (Odin is the most expensive), the higher the monthly fee. These fees will also help keep the protocol sustainable for months and years (hopefully)!
The fees will be as follows:
- $5 (in AVAX) per month for Heimdall nodes
- $10 (in AVAX) per month for Freya nodes
- $20 (in AVAX) per month for Thor nodes
- $80 (in AVAX) per month for Odin nodes.
We believe these changes will be healthy for the protocol and for the investors, and once again, it shows that the developers and the team behind Thor Financial are taking the project and the investors seriously!