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DASH WORLD update #2: Masternodes as an Investment

GreyGhost

Well-known member
Foundation Member
With guidance and data from crowning Dr. BobLQ (boblq) analyzed the Masternodes return. Dr. BobLQ wrote a Python program to help him get the accurate set of data.

KEY FINDINGS:

-- During the 16 month (5 quarters) period for which data was gathered the number of Masternodes increased from 1637 to 3688 representing over a 200% growth in the network;
-- The average ROI measured in DASH varied from a beginning rate of 19.5% at the start of the period declining to 11.9%;
-- During this period Masternode earned 240 DASH on the 1000 DASH underlying collateral. This is (12/16)*240 = 180 DASH or an 18% annual return.

Meanwhile there has been a steady rise in the USD/DASH exchange rate which was at 1.81 USD/DASH at the beginning of the period and rose to 6.42 at the end of the period.

Thus the return on USD invested has been even better than the DASH return since it is helped by the exchange rate. Thus the 1000 DASH collateral cost 1810 USD at the start of the period but had earned 790 USD over the 16 month period. Annualizing this return we have (12/16)*(790/1810) = 33% USD return."

In the spirit of the DASH WORLD (“amplifying the work” and “cooperation with the community”) we:

1. are creating 3D graphs (Raptor73 does the work);
2. will be using the data for the Dash World Manila Premiere on May 18th, 2016;
3. are working on a set of articles on the topic (it could be one big article or two, three smaller – it depends on the editorial decision by The Vanbex Group that would place and publish these articles);
4. will approach a small set of investors to gauge interest and gather feedback**;
5. are creating Infographics to support previous work and present MN as an Investment.

** Point in case: in a private e-mail message to Roman (GreyGhost) Marc De Mesel of NXT fame, also “a large capital investor in the crypto space” wrote: “I really like the DAO structure of Dash, as well as the more private transactions, and was considering investing, but then discovered there is no growth in transactions the past year. I don't invest until I see strong growth in transactions and users.”

We can’t be oblivious what other investors think about us and our duty is to improve and change their mind(s) as DASH gathers traction.
 
GreyGhost Dash getting added on BTC-e exchange is big. Use that if it helps.

I don't think the ROI ever got above 18%. The masternode rewards were not always 45% of the block reward. They ramped up like the chart below. Hard to believe that was just last year ...seems like so long ago.

date* masternode share
10/24/14 20.00%
11/25/14 25.00%
12/26/14 30.00%
01/24/15 35.00%
01/26/15 37.50%
02/27/15 40.00%
03/30/15 42.50%
05/01/15 45.00%
 
I don't think the ROI ever got above 18%. The masternode rewards were not always 45% of the block reward.

But there were less Masternodes (thus more ROI for each one) and roughly one year ago the mining difficulty was low so payments of 3 Dash and above were not unusual.

The data I gave GreyGhost and boblq is real-life data, not computed data.
 
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