Alpha Nodes Evolution

A Big Thank You.

First off, the entire Alpha Nodes team cannot thank our amazing community enough for the unexpected outpouring of support, hype, and drive to grow our young project. In just nine days, we’ve been able to achieve goals that the vast majority of protocols take months to achieve, or fail to achieve all-together. Before we move forward, let’s take a quick peek at what we’ve accomplished so far. Keep in mind, we have paid $0.00 in advertising / marketing.

Accomplishments:

• Grew our Alpha Fund (treasury) to $150,000
• $260,000+ Rewards Paid Out to Holders
• CoinMarketCap & CG in 24 hours
• More than 3,650 Discord Members
• Almost 4,000 Twitter Followers
• 1550+ $ALPHA Holders
• KYC Delivered by RugDoc
• Multi-Sig Wallet Established
• Added 2 more engineers and an NFT artist
• and much more.

Phase 1

These are significant accomplishments and serious steps for “just a reflection token” to take. From the beginning, our founders have had a vision and a plan to bring Alpha Nodes to the forefront of the DeFi community in a sustainable and transparent way. We understood that if we want to build the protocol of our dreams, it simply cannot be done overnight. So we launched phase 1 with this goal in mind and began laying the framework for Alpha Node’s transition to Phase 2.

Phase 1 was Alpha Nodes as a reflection token. Building a reflection token was quite a bit of work, but nothing compared to the complexity of the systems we have been working on since launch. We have been transparent since day one, letting our holders know a % of each transaction was going to a growing treasury that will be used to really take us to new heights. By starting out our journey as a reflection token, we were able to get past the initial launch dump, bootstrap solid liquidity, and raise quite the modest Treasury. Our community’s initial support and explosive growth has made it possible for us to expedite our plans and get moving on Phase 2.

Phase 2

Phase 1, a.k.a. reflections tokenomics, was very rewarding to our early holders, and provided our community members a taste of what’s to come with our PIP (Passive Income Protocol). However, many people are aware of the elephant in the room — as reflection tokens age, volume deteriorates and rewards reduce accordingly. Many of us have been burned by other reflection token projects once the volume starts to die down, the whales sell off and your earnings are not what they once were. Nobody wants this, and it would be untruthful to say that in a reflection model there is long-term sustainability. This is now where we begin our transition to phase 2 and a long term structure.

As you can probably tell from our name, Alpha Nodes, we were designed from the beginning to be a unique Node protocol that offers significant, but sustainable passive income to our holders through multiple revenue streams. Before we get into the specifics of our protocol and tokenomics, let’s first breakdown a few pitfalls of other node protocols.

Over-incentivization of Return

• One method of launching a node protocol is to over-incentivize APRs at the start in a way to draw new investors in to purchase nodes. These practices are not sustainable but are employed as marketing devices to draw in as many investors as possible as fast as possible and then begin slashing rewards to keep the project more sustainable. We find this misrepresentative.

Runaway Node Creation

• When a Node project becomes wildly successful, everyone has an incentive to create and then compound more and more nodes, and price action is positive. After some time, there will be an inflection point where the amount of nodes created and rewards that are being claimed per day will create a demand for liquidity (sell pressure) where rewards will outpace the node creation rate. This is a massive issue that has caused a death spiral resulting in unsuccessful node projects.

Your Initial Is Locked Up

• Many Node protocols work by turning in a number of native tokens for a node, and basically “burning” those tokens away into your node. You are then locked into that node for life, and there is no way to transfer it unless you literally sell your private keys. No bueno. A recent “solution” for this was to turn these nodes into tradable NFTs. This comes with it’s own issues, see next.

Issues with current NFT Nodes

• Within the last 1–2 months, a number of projects have popped up offering nodes as NFTs. Users can earn and claim from that node but also have the ability to sell that node on a secondary NFT marketplace if they wanted to exit the project completely. That all sounds great in theory, but there is a massive issues caused by these second-hand NFT markets.
• As the price of these node projects increase, these second-hand markets are great for people to take maximum profits and exit their position, while also potentially letting a new entrant snag an NFT for less than the price it would cost to make the same node with purchasing new tokens. However the moment price starts to decline, a massive issue arises.
• As price action declines, these NFT marketplaces become a feedback loop for undercutting the price of the native token. Since people don’t have as much conviction over the project due to the price, more profits are taken, and more nodes are sold on the open secondary marketplace. Since these nodes are able to be purchased with non-native project tokens like AVAX or FTM, these second-hand NFT marketplaces are perpetually undercutting the price of the actual open-market token. This downward spiral seems impossible to stop. The issue here is that these NFT Nodes are able to purchased and sold using other currencies than the project’s currency.
• Alpha Nodes will be first to market with innovative solutions that eliminate this issue with our in-house custom designed NFT Marketplace.

Alpha Nodes Next Steps

Alpha Nodes has solved all these issues, and our developers have been working on Phase 2 for some time now. With the success of our Phase 1, we were able to hire two more engineers, an artist, and have a cushion for expenses to make sure we deliver the best product to our Alphas and OGs. We are just weeks away from launching Phase 2 of Alpha Nodes, and we will be dripping a new Medium article every 2–3 days with our updates, sneak peeks and more information on what’s to come. There will be at least two AMAs per week up until our Phase 2 launch. During the next 2–3 weeks, reflections will stay on so our holders can continue to receive that sweet sweet passive income. You can consider this period a pre-sale for our token prior to NaaS being released.

Once our Phase 2 is ready to launch, taxes will be turned to 0%, reflections will be turned off, and your $ALPHA will be ready to be converted into sustainable nodes. There is no migration, no V2. The $ALPHA you currently hold, is the currency necessary to create our Alpha Nodes. We have so much in store for Alpha Nodes; you’ll soon hear how we plan to create strategic revenue streams for our nodes that do not rely on investments, i.e. ponzinomics.

Here is a sneak peek on what is to come, and what will be announced in detail as we move forward.

• Alpha Marketplace — Built In-house NFT Marketplace
• Alpha Nodes Multi-Chain Update
• Node Creation & NFT Minting Costs
• NFT Tiers, and how that works
• NFT Collections
• Upgrading Your NFT Node
• OG NFTs

There is so much more we would like to spill the beans on, and it’s so difficult to contain it all as I write this. As we finish up getting this built, we want to drip our progress and unique functionality over the next couple weeks. What I can tell you — This NFT Marketplace is going to bring long term value to our project and it’s holders. We are building something no one else has, but what many projects need. I think you can pickup what I’m putting down.

Sneak Peak of the NFT Marketplace will come in our next Medium Drop!

What’s Next?

This was our first Medium drip of a number to come over the next couple weeks. As we move forward in building this out we will have a better idea of the exact launch date, but we always like to under-promise and overdeliver. What I can tell you — We are working full-time to get this out to you.

Our next Medium article will be all about our NFT Marketplace, the functionality we are bringing to not only the ALPHA token but to the DeFi space in general, and how our $ALPHA token (and therefore holders) will benefit from this new ecosystem. Stay tuned!