***If mods think this post is beneficial, maybe they could sticky it somewhere?***
Every time we have a major update and eduffield turns off enforcement, people start complaining vigorously about missed masternode payments. I thought I would do some math to show that people really aren't missing out on all that much.
First, let's make some assumptions:
Approximate Number of Major Updates Per Year = 3
Approximate Days Without Enforcement Per Update = 3
Masternode Network Consists of 3000 Masternodes Being Paid 50% of Block Reward
Now, let's see how much money a masternode owner is missing out on due to that pesky eduffield turning off enforcement:
Average MN Payment Per Day = 0.5 DASH*
Expected Income Per MN Per Year = 182.5 DASH
Expected ROI Per Year = 18.25%
When enforcement is turned off, approximately three times a year for three days at a time, 20% of the network "cheats" and doesn't pay masternodes. Everybody else continues to pay masternodes voluntarily. That means that if you own one masternode, in one year you will lose:
3 (Updates Per Year) * 3 (Days Without Enforcement Per Update) * 0.5 DASH (Expected MN Payment) * 20% (Number of Cheaters on the Network) = 0.9 DASH Per Year
On average, the owner of one masternode will "miss out" on less than 1 DASH per year due to enforcement being off during major updates. That reduces the expected ROI from 18.25% to 18.16% and is a miniscule price to pay for all the benefits that these major updates bring us.
*To calculate this number:
3000 Masternodes / 576 Blocks Per Day = One Payment Every 5.2 Days
30 Days Per Month / 5.2 Days Between Payments = 5.77 Payments Per Month
Minimum Block Reward = 4.65 DASH * 50% of Reward to Masternode = 2.33 DASH
2.33 DASH Per Payment * 5.77 Payments Per Month = 13.44 DASH Per Masternode Per Month
13.44 DASH / 30 Days Per Month = 0.45 DASH Per Masternode Per Day
The block reward often increases past the minimum of 4.65 when mining drops off, so going with an average of 0.5 seems appropriate.
Every time we have a major update and eduffield turns off enforcement, people start complaining vigorously about missed masternode payments. I thought I would do some math to show that people really aren't missing out on all that much.
First, let's make some assumptions:
Approximate Number of Major Updates Per Year = 3
Approximate Days Without Enforcement Per Update = 3
Masternode Network Consists of 3000 Masternodes Being Paid 50% of Block Reward
Now, let's see how much money a masternode owner is missing out on due to that pesky eduffield turning off enforcement:
Average MN Payment Per Day = 0.5 DASH*
Expected Income Per MN Per Year = 182.5 DASH
Expected ROI Per Year = 18.25%
When enforcement is turned off, approximately three times a year for three days at a time, 20% of the network "cheats" and doesn't pay masternodes. Everybody else continues to pay masternodes voluntarily. That means that if you own one masternode, in one year you will lose:
3 (Updates Per Year) * 3 (Days Without Enforcement Per Update) * 0.5 DASH (Expected MN Payment) * 20% (Number of Cheaters on the Network) = 0.9 DASH Per Year
On average, the owner of one masternode will "miss out" on less than 1 DASH per year due to enforcement being off during major updates. That reduces the expected ROI from 18.25% to 18.16% and is a miniscule price to pay for all the benefits that these major updates bring us.
*To calculate this number:
3000 Masternodes / 576 Blocks Per Day = One Payment Every 5.2 Days
30 Days Per Month / 5.2 Days Between Payments = 5.77 Payments Per Month
Minimum Block Reward = 4.65 DASH * 50% of Reward to Masternode = 2.33 DASH
2.33 DASH Per Payment * 5.77 Payments Per Month = 13.44 DASH Per Masternode Per Month
13.44 DASH / 30 Days Per Month = 0.45 DASH Per Masternode Per Day
The block reward often increases past the minimum of 4.65 when mining drops off, so going with an average of 0.5 seems appropriate.