Updated: October 2022
Vapor Nodes has undergone a large change and contract. Vapornodes no longer work as it previously did with 1% daily rewards.
The new reward system is based on value-added services from their products such as the Vapor DEX.
The other major update is that you can no longer buy nodes, but previous nodes have been transitioned to NFTs that can be sold.
Proceed with caution below information may not still be relevant with new smart contract.
If you told me I could get a “guaranteed” 1% return on my investment everyday before the days of crypto I would have thought you were crazy.
We’ll it actually still is a bit crazy to think about.
After investing just a little bit of money into VaporFi on January 11th. I’ve been doubling down by compounding returns and adding to my initial investment as well.
Currently, I have three Vapor Nodes. Each with a slightly different amount.
And since I keep compounding my nodes I’ve earned additional rewards. Some of the nodes are earning 1.4% daily rewards.
My biggest regret is not buying more.
On January 11th the price when I purchased was a little under .02 cents per $VPND.
Less than a month later the price hovers between .07 and .09 cents.
It’s easily one of the better investments I’ve made.
Vapor Nodes changed their name to VaporFi in their DAO snapshot governance proposal in Janruary 2022. Probably just a habit, and places such as CoinMarketCap still refer to VaporFi as VaporNodes so I’ll use them interchangeably.
What are Vapor Nodes?
VaporNodes is a digital node protocol that gives you access to DeFi projects across multiple chains.
It’s decentralized finance as a service. Similar to nodes such as Thor.Financial you purchase the coin and purchase a Node which pays out daily rewards.
Nodes rewards vary on the amount of VPND of your node. You can also earn incentives for holding onto your nodes for a longer period of time.
Vapor Nodes Rewards
As mentioned Vapor Nodes pays out a 1% daily reward currently. As with other node protocols we have seen this number change, so it wouldn’t be a complete surprise to see this lower if unsustainable in the future.
For example, if you have a node of 15000 $VPND you would receive 150 $ per VPND each day.
As I mentioned I wish I would have purchased a bit more, and I’ve been steadily compounding and adding to my investment, but I’m happy with my current payouts.
At the current $VPND price I’m earning about $7-$11 per day.
It comes out to about $200-$300 each month. Which isn’t bad at all for what I initially invested a little over $100.
I haven’t been claiming those rewards though. For VaporFi I believe in this project long-term. So every day or just about every other day I will compound those rewards.
The 1% reward is calculated each minute! So you could compound pretty frequently, you just have to pay gas costs. I found about every other day is a nice balance between gas fees and compound earning benefits.
But what I love most about the Vapor Nodes rewards is the Diamond Hand Bonuses.
VaporFi Diamond Hand Bonuses
For holding onto and compounding your nodes you get rewarded in what the VaporFi team calls “Diamond Hand” bonuses.
After you compound for a minimum of 3 days you’ll see a boost in your reward earnings.
Current Diamond Hand Rewards:
- You have not claimed rewards for 3 days you get a x1.05 boost
- You have not claimed rewards for 7 days you get a x1.2 boost
- You have not claimed rewards for 15 days you get a x1.4 boost
Remember you can compound your rewards, you just can’t claim your rewards.
So in our example of a 15,000 $VPND node, and you don’t claim any rewards for 15 days or more instead of getting 150 $VPND x 15 days = 2,250 $VPND, you will get 150 $VPND x 1.4 boost = 3,150 $VPND.
You will know when you are getting diamond hands rewards when there is a diamond icon and your reward amount has been updated on your nodes dashboard.
How much do Vapor Nodes cost?
To buy a Vapor Node you will need to purchase $VPND. The amount of VPND depends on the current state of the VaporFi community and is always evolving. At the time the minimum amount of $VPND to purchase a node is 15,000.
If the price of $VPND is $.07 you’ll need approximately $1050 to get started.
When I purchased you could actually buy nodes for only 1000 $VPND, and I have seen the minimum node amount increase to as much as 25000 VPND.
The good news is rumors have it that smaller node amounts to encourage smaller investors to just get started with DFAS are just around the corner.
You can find the current minimum node cost on the Vapor Nodes home page here.
Best Place to Buy $VPND
Your best option is to buy $VPND on TraderJoexyz.com. I also like to buy on Matcha.xyz just for simplicity, but they are about the same.
The one caveat to this is if you are purchasing a large quantity of $VPND you should purchase on the OTC exchange.
$VPND OTC MARKET
When buying and selling large quantities of $VPND using the OTC market will help lessen some of the large price swings that can happen on a dex.
You’ll also likely get a better price.
Requirements for the $VPND OTC market:
- $50K and up for buys
- buyer gets a quote 5% above market price
- $25K and up for sells
- seller gets a quote on market price
VaporNodes Investing Treasury Funds
You can find the VPND DAO treasury on DeBank here.
The team has done a great job of investing the funds for returns and is even investing in some rather riskier investments than some of the other nodes we’ve seen.
The most controversial of the investments were in the bored ape NFT.
The DAO voted to purchase a Bored Ape NFT worth approximately 100 ETH (About $300k at the time).
The reason behind buying the NFT was primarily marketing-driven.
Some incredibly influential people own part of the collection.
Some of the biggest names in the world own a BAYC:
By owning the NFT it allows VPND to not only use the design in marketing materials but allows for press opportunities to get mentioned next to those famous names with household recognition.
I was a bit skeptical at first, but it’s actually a pretty clever marketing tactic.
In addition, if the NFT market continues to rise in price the purchase could create a return for node holders in the long run as well.
Overall Vapor Nodes Thoughts
I really think Vapor Nodes is a gamble, but it’s a gamble that I think will pay off big time.
The founders are going hard. They are building, promoting, solving problems, and investing treasury funds what feels like 24/7.
If they can keep that up over the long term, VaporFi is going to be the next Berkshire Hathaway.