Masternodes

Masternodes are computers that run a dash wallet and make decisions, such as locking transactions with InstantSend, coordinate mixing of coins, and voting on budget funding.

Masternodes are required to have 1000 Dash collateral, a dedicated IP address, and be able to run 24 hours a day without a more than a 1 hr connection loss. Masternodes get paid 45% of the block reward on every block, which is distributed to masternodes one at a time. Typically, around 2 dash is paid to each masternode every 7 days.

WHAT IS MASTERNODE?

Masternode Income

Masternodes cost money and effort to host so they are paid a share of the block reward to incentivize them. With current masternode numbers and rewards masternodes earn approximately a 11% return on 1000 Dash for the year of 2016. This reward falls off in subsequent years but as the value of Dash is rising and the supply of Dash goes down, masternodes should still be sufficiently incentivized. This projection also doesn’t count the fees that masternodes earn whenever someone uses its services (InstantSend and PrivateSend).

HOST A MASTERNODE

1000 Dash: Arguably the hardest part. Dash can be obtained from exchanges such as Poloniex, Bittrex and Shapeshift‘s service is also an excellent way. For the full list of places to obtain Dash click here.

A server or a VPS installed with Linux: For the purposes of this guide we will be used Ubuntu 14.04 LTS. We recommend cheap VPSes such as from Vultr and DigitalOcean though any decent provider will do. Generally a low specced one will do. I use the 5 USD ones from Vultr and they work fine.

A dedicated IP address: These usually come with the VPS/server.

A little time: When I first got into masternodes, there were only a few guides around and did not cover all the scenarios. It took days for me to figure out the best ways to do everything. However, the process now takes a few minutes. Here are a few guides that I hope will make the process a lot easier.

If you can’t be bothered with setting up and maintaining your own and don’t mind paying a little extra, you can go with paid masternode hosters which will greatly simplify the process. A few good ones can be found here.

Start Masternode

Masternode Hosting Services

There are many Trustless Hosting services availabel. These services only provide the VPS Backend setups, Wallets and coins are still held by you (Trustless).

Pooled Services provide Masternode accessibility to users with less than 1k Dash (many users share 1 Masternode)

Masternode Hosting Services

P2P

Text about peer2peer Thanks to incentivization, Dash’s network has grown to 4,100 masternodes since launch in 2014, meaning Dash’s peer-to-peer network is one of the largest in the world. More nodes means more secure services, and more capacity for end-users to access Digital Cash from anywhere in the world, 24/7.

Text about peer2peer Thanks to incentivization, Dash’s network has grown to 4,100 masternodes since launch in 2014, meaning Dash’s peer-to-peer network is one of the largest in the world. More nodes means more secure services, and more capacity for end-users to access Digital Cash from anywhere in the world, 24/7.

Network Stats