# An example for Node Operators

* Node Operator A and B are added to the `NodeOperatorRegistry` contract by Tranchess
  * Node Operator A calls this contract to adds 100 validator pub keys
  * Node Operator B calls this contract to adds 20 validator pub keys
* Alice creates 200 qETH by depositing 200 ETH into the `Fund` contract
* Bob creates 300 qETH by depositing 300 ETH into the `Fund` contract
* The `EthStakingStrategy` contract fetches 480 ETH from the `Fund` contract and deposits to the ETH2 Deposit Contract.
  * The contract’s operator selection algorithm decides to use 5 pub keys from Node Operator A and 10 pub keys from Node Operator B.
* Some days later, the validators are active and have gained some rewards.
  * Node Operator A’s 5 validators gain 0.2 ETH on the consensus layer.
  * Node Operator B’s 10 validators gain 0.3 ETH on the consensus layer.
* A reporter reports all Node Operators’ total balance on the consensus layer to the `EthStakingStrategy` contract: A=160.2 ETH, B=320.3 ETH
* 90% of the total rewards are added to the Fund and therefore increases the value of qETH
  * qETH’s total supply is still 500 and corresponds to 500 + 90% \* (0.2 + 0.3) = 500.45 ETH
  * Each qETH worths 1.0009 ETH now.
* The rest of the total rewards are used to create new qETH tokens and distributed to Node Operators, veCHESS holders and Tranchess treasury.
  * Creation follows the current value of qETH. Each created qETH consumes 1.0009 ETH.
  * Each Node Operator gets a to-be-decided fraction x% of rewards from its validators.
    * Node Operator A gets (0.2 \* x% / 1.0009) qETH
    * Node Operator B gets (0.3 \* x% / 1.0009) qETH
  * The rest of created qETH tokens are transferred to the `FeeDistributor` contract, which then distributes them to veCHESS holders and Tranchess treasury.