Revenue
Value before expenses are deducted.
TOP LINEFour layers of the model
Revenue is the value of the reward before costs. Operating expenses include electricity, fees, cooling, maintenance and downtime. Operating profit is the difference for the same period. Capital expenditure covers hardware and site preparation.
Do not deduct capital cost again as a daily expense. Use it separately when comparing payback scenarios.
A transparent example
With daily revenue of 10, electricity of 2.40, pool fees of 0.10 and other costs of 0.50, the operating result is 7.00 per day.
10.00 − 2.40 − 0.10 − 0.50 = 7.00 per day
Why payback can mislead
If initial cost is 1,000, simple payback at an unchanged daily result of 7.00 is about 143 days. The calculation assumes conditions never change.
It omits future difficulty, price, downtime, taxes, residual value and the time value of money.
Say that a scenario produces a 143-day simple payback. Do not say the hardware will repay itself in 143 days.
Operating break-even
Operating break-even occurs when daily revenue equals included daily costs. It does not recover hardware cost; it only means the current operation is not losing money under the selected inputs.
Minimum daily revenue = electricity + fees + maintenance + other daily costs
Handle uncertainty explicitly
- Use a base, negative and stress scenario.
- Keep a repair and downtime reserve.
- Recalculate when tariffs, difficulty or revenue change.
- Assess hardware liquidity separately.
- Never calculate income for a network that is not live.
The public Quinvarium network and miner are not live. This page contains no QNV revenue model.