Front Matter
hsp: HSP-007
title: Establish a Sustainable MPC Node Infrastructure Financing Program Funded via Protocol Emissions
description: Establishes a sustainable incentive program to fund MPC nodes supporting NEAR Intents using protocol emissions.
author: Sal Ternullo, Kendall Cole
discussions-to: https://github.com/houseofstake/proposals/blob/main/HSPs/hsp-007.md
status: Voting
track: Decision
type: Simple Majority
category: Economic Governance
stakeholders: MPC node operators, NEAR Intents developers, Chain Signatures users, NEAR token holders
created: 2026-01-29
requires: HSP-001
Abstract
This proposal establishes a MPC Node Infrastructure Incentive Program funded via protocol emissions accrued to create infrastructure incentives and is governed by House of Stake. The program provides performance-based monthly compensation to up to 21 MPC node operators supporting NEAR Intents and Chain Signatures. Compensation is NEAR-anchored at a fixed rate per node, with payments executed on-chain from House of Stake wallets following off-chain SLA validation and calculations.
The program transitions MPC infrastructure funding from discretionary grants to a transparent, governance-controlled mechanism aligned with NEARâs emissions mandate. Payments are binary and SLA-gated, ensuring emissions-backed funding is issued only for delivered performance.
Context
NEAR Intents and Chain Signatures rely on MPC nodes to provide secure, distributed cryptographic signing across chains. These nodes are core production infrastructure that underpin NEARâs intent-based execution model and multi-chain strategy.
Today, MPC node operations have been supported primarily through off-chain grants. While grants enabled early adoption, grant-based funding is discretionary and time-limited, which is structurally misaligned with permanent protocol infrastructure. As House of Stake assumes governance responsibility for protocol emissions allocation, MPC infrastructure should transition to a transparent, rule-based program governed by token holders. This proposal establishes that transition without modifying protocol parameters, smart contract logic, or emissions rates.
The MPC nodes powering Chain Signature are critical infrastructure enabling NEAR Intents which have proven exceptional product market fit with over $10B in volume processed to date. The system leveraging MPC nodes is also extensible to other use cases including privacy which are on the roadmap for NEAR Protocol in 2026. This proposal represents a significant and important milestone in establishing a sustainable funding mechanism from protocol emissions for core infrastructure.
Problem
MPC nodes that secure NEAR Intents and Chain Signatures lack a stable, governance-approved funding mechanism appropriate for mission-critical protocol infrastructure. Reliance on discretionary grants creates operator uncertainty, inhibits scaling to the target operating state, and misaligns long-term infrastructure incentives with emissions governance.
Without an emissions-backed, SLA-gated program, the protocol risks degraded reliability, slower scaling of the MPC set, and reduced resilience and decentralization of signing infrastructure.
Approach
The MPC Node Infrastructure Support Program operates with retrospective monthly payment based on adherence with performance requirements. This structure ensures protocol emissions are only distributed for delivered service, incentivizes continuous SLA compliance, and provides predictable economics for scaling MPC infrastructure as NEAR Intents and Chain Signatures mature.
Maximum Monthly Payment: 4,600 NEAR per qualifying MPC node, distributed monthly in arrears for each month of the program term (using a trailing 180-day average NEAR/USD price, where $1.50 represents the floor economic scenario, corresponding to approximately $6,900 per node per month: $5,750 infrastructure, monitoring, and maintenance costs plus a 20% margin). This scenario represents the floor price and economics for MPC nodes. It should be clearly noted that the prior discussions in the forum have run to ground the pure hardware costs on a monthly basis (in the lowest cost available provider) arriving at a minimum of $4,500 USD to operate 3 nodes (production mainnet, back-up mainnet, and testnet) required per provider without contemplating software costs or human resource costs. This program will be revisited annually in context of changing cost structures across the hardware landscape and integration support for Chain Signatures.
Cap on Program Incentives: Similarly, this proposal provides a structure which caps the USD equivalent upside at $3 as NEAR prices rise materially to protect the protocol from overpaying for MPC nodes. In this scenario, MPC nodes provide a profitable economic model with a margin of up to ~$8,000 USD per month relative to infrastructure, monitoring and maintenance costs of $5,750 USD. The examples of calculations for a Floor, Actual and Cap scenario are enumerated in Exhibit 1. Conversely, this proposal introduces a floor mechanic at a price of $1.50 USD per NEAR token to ensure that the MPC node operators are not operating at a loss.
Compared to alternatives:
- Continue grant funding: simple short-term, but discretionary and mismatched to permanent infrastructure.
- Purely market-based/operator self-funding: risks underinvestment in reliability and slower scaling.
- Fully automated on-chain distribution: reduces human involvement but increases execution surface and governance change risk; this proposal keeps execution explicit while retaining on-chain transparency.
Benefits
- Establishes predictable, governance-controlled funding for critical MPC infrastructure.
- Ensures emissions are distributed only for delivered, SLA-verified performance.
- Aligns MPC operator incentives with protocol reliability and decentralization goals.
- Protects the protocol from overpayment during periods of significant NEAR price appreciation.
Limitations
- Requires monthly operational verification and reporting overhead.
- NEAR-denominated payments expose operators to price variability below the cap.
- Changes to compensation parameters require formal House of Stake tokenholder vote and cannot be adjusted dynamically.
End-to-end Value Hypothesis
This proposal delivers complete, standalone value by ensuring that MPC nodes supporting NEAR Intents and Chain Signatures are funded through a transparent, governance-approved mechanism aligned with protocol emissions policy.
By defining eligibility, compensation, enforcement, and administration within a single proposal, the program removes reliance on undefined follow-up actions or discretionary decision-making. All components necessary to realize the intended value, funding source, payment logic, performance gating, and governance authority, are explicitly specified.
Objective
- Allocate a maximum 4,600 NEAR per MPC node per month (at a floor price of $NEAR = $1.50) to cover infrastructure, monitoring and maintenance costs with a 20% incentive margin.
- Transition MPC node funding from discretionary grants to House of Stakeâgoverned protocol emissions.
- Provide positive expected profit for MPC node operators to incentivize long-term participation.
- Enforce service requirements to realize gated payments so emissions are paid only for delivered performance.
- Support scaling to the target state of 21 MPC nodes without changing per-node economics.
Outcome
- Up to 21 MPC nodes are funded and operational, within a maximum allocation, with funding sourced from protocol emissions held in
treasury.near. - Monthly payments executed in arrears.
- Monthly public reporting by proposal authors via House of Stake proposal updates.
- Emissions slashed for nodes failing to meet SLA requirements in any month (see Exhibit 2).
- Governance-ready data to reassess node count, margins, and pricing assumptions.
Dependencies
- Existing MPC node infrastructure supporting Chain Signatures and Intents (currently live; 9 nodes noted in current state).
- Existing monitoring + performance evaluation process (âNEAR Oneâ monitoring process referenced).
- Service Level Requirements framework (Exhibit 2) establishing 99.0% and 95.0% Monthly Uptime thresholds and forfeiture mechanics.
- Treasury execution capability from House of Stake to perform on-chain transfers.
- Governance forum challenge process allowing participating MPC providers to contest SLA failures (Exhibit 2 procedure) in the Governance forum.
Key Performance Indicators (KPIs)
- SLA Compliance Rate (Monthly): % of eligible MPC nodes achieving Monthly Uptime requirements (Exhibit 2).
- Active MPC Node Count (Monthly): number of nodes funded (â¤21) and number of nodes live.
- Payment Integrity: % of months where payments match the approved payment formula and SLA outcomes.
- Challenge/Dispute Incidence: number of governance-forum challenges filed and resolved per month.
Technical Specification
Compensation Formula
To protect the protocol from overpaying for MPC infrastructure during periods of material NEAR price appreciation, monthly compensation is subject to a USD-equivalent cap based on a $3.00 per NEAR reference price. See Exhibit 1 for example calculations.
Price reference: The NEAR/USD price used for monthly payment calculations shall be determined using a trailing 180-day arithmetic average calculated from a single, publicly verifiable price source being Coinmarketcap NEAR/USD as of 0:00 UTC. The averaging window (180 days), data source, and calculation methodology are fixed and shall be published as part of the Program Charter at launch. While the resulting average price updates monthly by design, no discretionary adjustments to the averaging window, data source, or calculation methodology are permitted during the program term. Any modification requires a new House of Stake governance proposal.
Eligibility
- Node must be an MPC node supporting Chain Signatures on NEAR mainnet.
- Maximum eligible nodes: 21
- Node Requirements: Hardware and software specifications are documented in NEARâs MPC Github.
Performance Requirements
- Must meet Monthly Uptime Percentage (Exhibit 2).
- Failure: 50% of monthly rewards forfeited for uptime < 99.0%; 100% of monthly rewards forfeited for uptime <95.0%
- Challenge process: another participating MPC provider may submit a challenge on the governance forum with dates/times; claims may be rejected if incomplete/unsupported.
Payment Execution
- Program administrator validates SLA compliance and the applied cap logic (if triggered).
- On-chain transfers executed from House of Stake within 14 days after month-end
- Payments are not automated; each monthâs transfer batch is explicitly authorized and executed.
Backwards Compatibility
No conflicts with existing protocol rules, contracts, or consensus mechanisms are introduced. The proposal establishes a new treasury distribution program and associated governance reporting. It is compatible with current operations and does not require protocol upgrades.
Security Considerations
This proposal does not introduce changes to protocol-level logic, consensus mechanisms, or validator operations. Risks are limited to correct application of the approved compensation formula, SLA validation, and treasury execution. These risks are mitigated through:
- A deterministic trailing 180-day price averaging mechanism and an explicit USD-equivalent compensation cap at $3.00 per NEAR
- Binary SLA-gated payments with full forfeiture on failure
- On-chain execution of transfers from House of Stake wallets
- Monthly public reporting of performance, calculations, and payments
No additional security risks have been identified.
Stakeholders
Implementation Plan
Definition of Done includes:
- Publication of eligible MPC node list (up to 21 nodes)
- Confirmation of applicable SLA standards
- Activation of monthly payment and verification process
- On-chain payment execution from treasury.near and House of Stake wallets
- Monthly public reporting of performance and payments
Implementation steps:
-
Publish Program Charter: confirm node cap (21), average calculation logic to include floor and cap, and publish the monthly price reference methodology.
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Publish Eligible Node Registry: list eligible MPC node addresses (up to 21).
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Confirm SLA Reference: publish the authoritative SLA/service requirements (Exhibit 2) as the governing standard.
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Establish Monthly Operating Cycle: payment deadline, SLA validation timeline, challenge window, and payment execution window.
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Monthly Reporting: post monthly updates as HoS proposal comments including (i) eligible nodes, (ii) SLA pass/fail, (iii) payments made, (iv) cap triggered or not, (v) challenges and resolutions.
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Annual Evaluation: The program will include an annual evaluation, starting at the end of Month 3, to address community feedback and ensure ongoing alignment with protocol needs. The evaluation will be led by Near One and reported publicly.
Each evaluation will review:
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Cost assumptions and operational efficiency
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MPC node operators expectations and sustainability
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Program performance metrics and transparency to token holders
Based on the findings, there may be recommended program adjustments. Any program changes require a separate governance proposal. The program will not automatically sunset as part of this process, ensuring predictability for operators.
Milestones
Budget & Resources
| Category | Assumption | Amount |
|---|---|---|
| Maximum Per-Node Monthly Payment | 4,600 NEAR per qualifying node | 4,600 NEAR |
| Maximum Funded Nodes | 21 MPC nodes | - |
| Maximum Monthly Allocation | 21 Ă 4,600 NEAR | 96,600 NEAR |
| Maximum Annual Allocation | 96,600 Ă 12 | 1,159,200 NEAR |
This proposal is not requesting an upfront transfer of tokens to House of Stake. Calculated rewards will be remitted from Protocol Treasury to House of Stake Treasury on a monthly basis and then distributed to MPC node operators.
Cost Notes
-
NEAR Price Assumption: NEAR-denominated payment amounts are calculated monthly using a trailing 180-day arithmetic average NEAR/USD price. The $1.50 reference represents the floor economic scenario used to illustrate baseline per-node economics. Actual monthly payments vary in NEAR terms as the trailing average updates, subject to the approved USD-equivalent cap at $3.00 per NEAR. The 180-day averaging window, price data source, and calculation methodology are fixed and may only be modified through a new House of Stake governance proposal. On a monthly basis, the calculated rewards will be distributed from the protocol treasury to House of Stake for distribution to MPC node providers.
-
Maximum Per-Node Economics: The 4,600 NEAR monthly payment per node corresponds to approximately $6,900 USD per month, representing:
-
~$5,750 USD in average infrastructure, monitoring and maintenance costs, plus
-
a 20% incentive margin to ensure positive expected maintenance costs are fully covered for MPC node operators.
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Hard Caps, Not Targets: The amounts listed above represent maximum allocations, not guaranteed spend. Actual monthly and annual emissions distributed may be lower.
-
Any expansion or modification of funding levels requires a new House of Stake proposal.If no proposal changing these economic parameters is adopted, this mechanism will continuously renew.
Team & Accountability
Responsible: MPC node operators are responsible for operating, maintaining, and securing their respective MPC nodes in accordance with the required service-level requirements. Operators are responsible for meeting all uptime, availability, and performance requirements necessary to qualify for monthly payments under this program.
Program Administration: House of Stake, or a formally delegated operator acting on its behalf, is responsible for administering the program and authorizing off-chain payments in accordance with the approved pricing formula.
Accountable To: House of Stake governance and, ultimately, NEAR token holders. Program administration and outcomes are subject to public scrutiny through governance records, monthly reporting, and publicly disclosed payment outcomes.
Governance of Continuation
Unless modified or terminated by a subsequent House of Stake governance proposal, the program will continue operating under the same parameters in successive terms. House of Stake retains full authority to amend or discontinue the program at any time through governance or where such action is required for legal, operational, or risk-management reasons.
Conflicts of Interest
The authors of this proposal are involved in NEAR infrastructure development. Sal Ternullo serves as the CEO of SVRN which is a NEAR-focused treasury company while Kendall Cole serves as the Founder of Proximity Labs, which has previously provided grant funding to MPC node operators within the ecosystem. The proposed transition of MPC node incentives from Proximity-funded grants to protocol-level funding could reduce or eliminate the need for such grant funding going forward. SVRN has a clear and expressed intention to become an MPC node provider in the system."
Copyright
Copyright and related rights waived via CC0 1.0.
Exhibit 1- Scenario Calculation: Actual December close, Floor and Cap
Exhibit 2
Service Level Requirements
SERVICE AVAILABILITY COMMITMENT.
-
Monthly Uptime Percentage. The MPC node provider will use commercially reasonable efforts to maintain a Monthly Uptime Percentage with respect to the MPC node provider infrastructure supporting the Node infrastructure. MPC node providerâs uptime support activities include:
( a ) 24/7 network-wide system monitoring;
( b ) 24/7 technical support for Critical Priority tickets; and ( c ) response to platform-level issues and upgrades. -
Monthly Uptime Percentage Calculation.
2.1. âMonthly Uptime Percentageâ means the percentage of total minutes in a calendar month during which the [production environment of the Services] is operational and available, as measured and determined solely by Provider using its monitoring tools and logs.
The Monthly Uptime Percentage is calculated as:
Monthly Uptime Percentage =
[(Total Minutes in Month â Unexcused Downtime) / (Total Minutes in Month)] Ă 100
Where:
âUnexcused Downtimeâ means the number of minutes during the month when the Services were unavailable, excluding Excused Downtime.
âExcused Downtimeâ means time when the Services were unavailable due to ( a ) scheduled maintenance, ( b ) emergency maintenance, or ( c ) an Exclusion.
2.2. MPC node provider will use reasonable efforts to notify Client of scheduled and emergency maintenance and schedule maintenance during off-peak hours.
-
Foregone Rewards. If MPC node provider fails to meet the Monthly Uptime Percentage commitment in a given calendar month, and such failure is not the result of an Exclusion, as described in Section 5, the Protocol will be eligible to forgo payment of rewards as set forth in the following table, subject to requesting such Service Credit in accordance with Section 4. All Forgone Rewards will be calculated based on the actual Fees payable for the impacted month.
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Forgone Rewards Procedure. In the event there is an uptime and service issue, another participating MPC node provider in the network can submit a challenge citing the specific dates and times of the alleged outages to the House of Stake governance forum. MPC node provider reserves the right to reject incomplete or unsupported claims in its reasonable discretion.
| Monthly Uptime Percentage | Forgone Rewards |
|---|---|
| 95% < (X) < 99.0% | 50% of monthly rewards |
| <95.0% | 100% of monthly rewards |
- Performance Exclusions. MPC node provider shall not be responsible for system downtime, degraded performance or other failure that is the result of resulting from:
( a ) Protocol software, or network configuration;
( b ) any third-party system or technology not within MPC node providerâs direct control;
( c ) a Force Majeure Event; or
( d ) suspension or restriction of Services due to Client non-payment, compliance violations, or misconduct under the Agreement (each, an âExclusionâ), and MPC node provider will have no obligation to issue Service Credits to the extent that a failure to meet the monthly uptime percentage is the result of an Exclusion.
Exhibit 3- MPC Node Hardware Requirements
The following hardware specifications and cloud provider recommendations apply to all MPC node operators participating in the network following the upcoming upgrade to the Trusted Execution Environment (TEE) MPC architecture.
Hardware Requirements
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CPU: 5th Gen Intel Xeon Scalable or Intel Xeon 6 (TDX-enabled)
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CPU cores: 16 or more
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Memory: 64 GB*
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Disk: 1 TB or larger NVMe SSD (or equivalent performance)
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BIOS: must have TDX support
* At least one DIMM must be installed in slot 0 of each memory channel. All memory channels must be symmetrically populated.
Networking
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Firewall: allow inbound traffic on port 80 (MPC) and port 8080 (web interface)
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IP address: a public static IP is required
Cloud Providers
The following cloud providers have been verified to offer hardware configurations compatible with TEE deployment. Other providers may also be capable of meeting these requirements. We recommend confirming TDX support with your existing provider before migrating to a new one.
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Hivelocity.net (will require a custom configuration)
Alternative Hosting Option
Server colocation remains a viable option at any data center that offers colocation services, provided that the hardware meets the requirements listed above.
Additional Information
Refer to the Intel Hardware Selection page for additional information.
) regarding the operational responsibility placed on the HoS. Defining the operating model and resourcing plan is critical before the vote.