August 3, 2020 12:45 am
After more than nine months of research, debate, and surveys the Dash DAO has voted to shift a portion of mining rewards to masternodes. The change in block reward allocation will be in next software release, Dash Core 0.16, expected in the coming weeks.
The Dash cryptocurrency network invented the masternode concept in 2014, and has recently come to an interesting conclusion: that masternodes heavily influence the coin’s market cap — both for better and for worse.
The past six years have seen Dash’s dramatic rise to the number three spot in market cap rankings, followed by its meteoric fall to the 25th spot where it currently resides.
And now, after more than nine months of research, debate, and surveys, the Dash network thinks they know why this happened. And what’s more, they have a plan to do something about it.
A Flattening of the (Expected) Curve
Once the Dash network deployed masternodes into its architecture in 2014, the network began gradually shifting block reward payments away from miners until they reached an even split: half the block reward went to miners, and half went to masternodes.
At some points in these early days, the annual return-on-investment (ROI) of running a masternode was as high as 20%. This understandably attracted many new investors to the Dash ecosystem, and the coin sat comfortably in the top-10 by market cap for nearly four years.
But then in late 2018, something started to change: the expected rate at which new master nodes were being created began to fall (see chart below). For the entire history………….
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Author: Hackermoon
Original link: https://hackernoon.com/the-double-edged-sword-of-masternodes-what-happens-when-inflation-surpasses-reward-zk163xib
About the author
tungfa
Communications
tungfa is responsible for social media communications, and posts both original stories and links to news coverage of Dash from around the web.