What is a Masternode?

Masternodes are nodes in the currencies network that fulfill a specific function beyond simply relaying transactions. In Dash’s case, they enable the InstantSend, PrivateSend, and the Dash Treasury System. Other crypto-currencies such as Crown plan to use master nodes to host decentralised apps amongst other things. This contrasts the system of i.e. Bitcoin, where a Node is simply a server relaying transactions.

Since Masternodes fulfill special functions for a cryptocurrencies network but do cost money and effort to operate, they are incentivized by gaining a share of the block rewards in their respective cryptocurrency. Hosting a Dash masternode generates Dash, a MUE masternode generates MUE. The yield varies primarily according to the masternode count and each coin might have different payout periods. PIVX pays out daily; Crown pays out several times a day. This makes masternodes a form to earn "passive income" on cryptocurrencies without having to run expensive mining equipment.

Anyone can run a Masternode. The objective is to have enough of them for decentralization so nobody controls an important fraction of Masternodes. However, there is one condition that usually has to be fulfilled: You have to stake a certain amount of coins in your masternode. Staking in this context means you lock up the coins for a fixed amount of time (think fixed-term deposit). The coins don't need to be in the Masternode, but they need to be kept in a certain way. If the owner moves or spends those coins, the Masternode stops working. This "proof of ownership" system serves to incentivize masternode operators and to prevent certain individuals to control a large share of the network by themselves.

What does it take to own a Masternode?

To create a masternode, a user needs to lock in a specific amount of coin. (See below for more details). In the case of DASH, the creation of a master node requires to lock in 1,000 DASH in a local wallet. Users can then either setup a server to host the masternode or ask a service provider to do so on their behalf.

Where can I find Masternodes?


Masternode Pro

MasterNodes.Pro takes great pride in completely researching the projects that apply to make sure the teams behind these projects are faithful and dedicated to their users and not just there for a money grab.

Masternodes.Online

MNO is a masternode coin monitoring and stats service. MNO does not research or recommend any coin. Do your own research and invest at your own risk.

MNGuide.online

Masternode Guides
A Detailed Step by Step Masternode Guide for everyone to setup their masternode(s) with just simple steps. We believe that it helps everyone to build their Masternode without any coding knowledge, MN Setup is very simple and easy to build with MNGuide.online.

Node Check

Allows you to monitor your masternode. It provides alerts for when the status of your masternode changes. You do not have to keep checking your masternode to ensure that it is working correctly - we do that for you automatically.

Masternode Stats

Latest news, cloumns and masternode statistics.

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