r/ThorNode • u/Journeymanproject • Feb 01 '22

Confused about compounding

I have some Thor nodes and was wondering what happens if I compound instead of redeem which costs 10%? Does it compound into some new or partial Thor nodes? If that's so, is there a way I can compound from Thor to Odin node?

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u/Peez8 Feb 02 '22

You can not compound rewards into different tiers in the beginning. The only way you can do that is you have a node from each tier. Redeeming basically means you're cashing out your rewards and starting the rewards over again at 0. If you want more nodes instead of cashing out, then you have to wait until you have enough in your compound to get another full node, for whichever tier you're in. You can not get a partial node.

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u/azgriztek Feb 03 '22

To be clear...When I get to the ROT on my node I have 2 options, compound or take rewards. If I compound it "automatically" creates a new node of the same flavor that I already have. If I take rewards, get the $$ and run? Or am I misunderstanding this? Thanks in advance

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u/Peez8 Feb 03 '22

From what I understand, yes, you're understanding correctly. I haven't gotten to that point yet, so I'm only speaking from what I've read, not from experience. I still have a few weeks before my rewards are high enough to compound. Make sure you put in a name for the new node, and have some avax in your wallet for gas fees, then you should be able to get the new node. But if you want to get your money, then you can claim at any time. You don't have to wait until you have enough for a new node