IPP-001 Passes: Initial Ciphernode Rewards Program

Interfold governance has passed IPP-001, establishing a 12 million FOLD rewards program to support ciphernode operators during Network Alpha.

Ciphernodes are essential to how the Interfold works. For each Encrypted Execution Environment (E3), a committee selected from the wider operator network collectively generates encryption keys and decrypts only the permitted result. No single operator can decrypt it alone, and the system does not rely on trusted hardware.

That design depends on a broad, independent operator network. The goal isn't simply more nodes, but more independent participants capable of supporting E3s without concentrating authority in a few hands. The Initial Ciphernode Rewards Program (IPP-001) helps build that capacity while application usage and the fees it generates are still developing.

For a deeper explanation of their role, read: What are ciphernodes?

What are ciphernodes?

Ciphernodes are the Interfold’s distributed operator layer, participating in distributed key generation and threshold decryption for E3s without concentrating execution authority in a single operator.

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How the rewards program works

Rewards and eligibility

The program allocates 12 million FOLD to eligible ciphernode operators over 12 weeks, divided into six 14-day epochs. To qualify, operators must meet the program's registration, bonding, ticket, and active-status requirements

The allocations follow a backloaded Fibonacci schedule (1:1:2:3:5:8), with smaller pools recognizing early operators and larger allocations encouraging new participation as the network grows.

Rewards are based on each eligible operator's credited tickets over time, up to a maximum of eight credited tickets per operator. The actual amount depends on all eligible operators' credited ticket-blocks during an epoch.

Registrations under common control may be treated as one operator for this cap. Additional tickets can still affect committee selection but do not increase IPP-001 rewards beyond the cap.

Program timeline

The program is retroactive. Its window began at mainnet deployment on August 19 and ends November 11, 2026. It does not restart when the proposal passes.

As of October 26, Epoch 5 is underway, with a total allocation of 3 million FOLD for October 14–28. The final epoch runs October 28–November 11, with 4.8 million FOLD allocated.

Operators who qualified earlier receive credit for their eligible participation in previous epochs, while new operators begin accruing once they meet the program's requirements.

Distribution

For each epoch, the Foundation publishes an accounting sheet showing eligible operators and their allocations, followed by a 48-hour dispute period.

Rewards are then distributed directly as FOLD locked for 30 days, immediately contributing to recipients' governance voting power. No separate IPP-001 claim step is required.

Operators can review their ticket-block accrual and estimated allocations through the IPP-001 Rewards Tracker. The tracker links to epoch settlement sheets, but its estimates are unofficial; the Foundation's published sheets determine final allocations.

The program is funded by the Foundation treasury, with no new token emissions, and operates separately from ordinary E3 fee rewards.

Read the full IPP-001 proposal.

What does it take to run a ciphernode?

You don't need to operate a data center to participate. A suitably equipped desktop, dedicated computer, or hosted server can run a ciphernode. You do need a reliable connection, the required collateral, and the ability to maintain your node.

Recommended mainnet setup:

• Hardware: 8+ modern CPU cores, 32 GB RAM, and 500 GB NVMe SSD.
• Connection: Stable internet with at least 10 Mbps upload, an accessible inbound UDP port, and Ethereum and Avail endpoints.
• Software: Follow the official operator instructions for Interfold CLI or Docker. A dedicated Dappnode package is being tested but is not yet published.
• Collateral: 32,000 FOLD per node, at least one ticket backed by 1,000 sUSDS shares, and ETH for transactions.

These are current recommendations and registration parameters. Some hardware figures are guidance rather than enforced minimums. Operator collateral is subject to protocol rules, including slashing and exit delays. See the full operator requirements for details.

Getting started

To get started, use the official operator documentation to prepare and run your ciphernode, and the operator dashboard to complete bonding and registration.

Need help? Join the Interfold Technical Telegram.

See it in action

Community members have helped make ciphernode operation easier to understand.

Tim's ciphernode walkthrough demonstrates a testnet setup, from installation through participation in an E3 committee. Watch here:

The winning submissions from September's Ciphernode Challenge offer further perspectives:

• 0xelegant: an independent operator guide for newcomers.
• DaveTheCryptoOG: a comprehensive overview of operator architecture and setup.
• RXu107: a technical explanation of the underlying cryptography.

These are independent educational resources. Refer to the official operator documentation for current installation instructions and network parameters.

The Initial Ciphernode Rewards Program is temporary. The infrastructure it helps establish is intended to endure.

Run a ciphernode. Help build the network.