According to the ROI spreadsheet:
https://docs.google.com/spreadsheets/d/1Y8uRsftL_uUcDPPiRvDDxJwI2ftLZq1iPavKaGfrF_c/edit#gid=0 it seems the network is currently oversaturated with service nodes, being only 79% profitable (!) compared to just staking 5000 coins. Theoretically, market efficiency means that people will start staking more instead of setting up new nodes and/or switchover nodes to staking, so that nodes become as or more profitable as staking. But I guess it takes some time to happen.
Is there a plan for implementing some automatic mechanism to help rebalance this or guarantee nodes to get a higher profitability than normal staking?
Is it not a case of the nodes will get far more from fees once it goes live?
Yeah, I think you are right - exchange fees should get distributed to nodes. But for the time being, normal staking is more profitable, unless there is some mechanism to balance it out.
It just stuck out as not ideal because I was under the impression that nodes should always have at par or higher ROI over stakers (but not too much higher) since they have to lock up 5000 BLOCK (~$110k now, which is not a small amount). Perhaps the Blocknet team can address this issue?