Masternode

Paws

Paws

Member
I hope I can get my information sorted out here. A master node is essentially putting 1000 o(or more?) Dash into a "savings" account to assist the network in anonymous and quicker transactions, it also means those 1000 will not be immediately dumped to mess up the market. This is about all I could find out in a week or so.

Also there appears to be a requirement of having a Raspberry pi? So, I was a bit late to the scene with bitcoin, but 4 or so years later, I came across Dash and I love it for the reasons I hated bitcoin, the fact that it is much more ASIC resiliant. I was extremely heartbroken to see thousands of dollars worth of graphics cards investment just get completely wrecked in a month.

I love the idea of a more equal playing ground for everyone, I never got an ASIC machine mostly out of my own personal boycott of the idea of all the people I met on bitcoin forums just vanish because of the same reason as mine.

With that said I am interested in setting up a master node but I am also afraid to invest anymore than I already have, with a single gtx 980 that ran me $700 USD including tax, I feel like the required 1000 dash is so far out of reach, over 2 years. Are there any other options that require very little to no more investment to make this a more obtainable goal than 2-3 years? I don't believe I am doing much better than 1 coin every 3 or 4 days at 11 Mhash

I would like to see Dash put Bitcoin in 2nd place someday, with what I feel is valuable technology, it deserves it. Thanks everyone for any information, happy mining.
 
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Hi and welcome to the forum :)

Paws said:
I hope I can get my information sorted out here. A master node is essentially putting 1000 o(or more?) Dash into a "savings" account to assist the network in anonymous and quicker transactions, it also means those 1000 will not be immediately dumped to mess up the market.
Click to expand...
There is no "savings" account, you just need to proof that you own 1000 DASH. You can spend them whenever you like, the masternode will stop working though :)

Paws said:
Also there appears to be a requirement of having a Raspberry pi?
Click to expand...
No, this is just a option. The requirement is to run a full node with a static IP address 24/7 - for this support of the network your node is getting paid.

Paws said:
With that said I am interested in setting up a master node but I am also afraid to invest anymore than I already have, with a single gtx 980 that ran me $700 USD including tax, I feel like the required $10000 dash is so far out of reach, over 2 years.
Click to expand...
A masternode has a requirement of 1000 DASH, which is $3650 at current market price :)
 
Thank you, I didn't realize it generated a revenue. I was initially thinking you lock away 1000 dash and have to make a long request in order to use them again. My funding is rather low to invest too heavily since my gpu purchase and I estimate only being able to keep up with difficulty changes at best, in either case I believe the time frame will be the same.

I noticed in the guides that was linked it mentioned "information on achieving your goal of a master node (see below), but from what I saw it was all information on assuming you already had 1000 to start a node- forgive me of I missed something there, I am viewing it on a phone at the moment.

I don't believe the 2 years or so time frame is unrealistic for someone truly adamant on being a big part of this currency, I am starting to feel I may be late too late to be a considerable founder to dash as well.
 
Paws said:
I noticed in the guides that was linked it mentioned "information on achieving your goal of a master node (see below), but from what I saw it was all information on assuming you already had 1000 to start a node- forgive me of I missed something there, I am viewing it on a phone at the moment.
Click to expand...

correct
all guides talk about you having the 1000 Dash ready to set up a MN

if you do not have 1000
you can always use a "Shared MN Service" (Pooling - a couple of people get together and share 1 MN, 100 Dash each /10 people -example)
as listed here:
https://dashpay.atlassian.net/wiki/pages/viewpage.action?pageId=1867885

Master nodes get paid per day, just as mining
daily payout in the moment per MN; 0.54 DASH / day
http://178.254.18.153/~pub/Darkcoin/masternode_payments_stats.html

you are not just supporting the network with a full Node (as in BTC)
you get paid for it too, and if you count the interest per month (better per year)
than you understand why Dash has 3000 MN's (20 Mill Market) by now and BTC 6000 (4 Bill Market)
:wink:
 
You`re very welcome @ my service Paws, simply check my signature for more info.
 
Why do Masternodes receive such a large percentage of the mining block reward? For what purpose do Masternodes receive an *increase* in block reward percentage each month without any particular increase in services provided? I can understand the 1000-DASH "staking" in order to limit the number of Masternodes, but the way that the masternodes get compensated with a huge chunk of the normal mining block reward, at practically no cost, makes me suspicious. It incentivizes people to acquire 1000 DASH *and* to take that 1000 DASH out of market circulation in order to earn continually-increasing returns, both of which drive up the market price of Dashcoins. Somebody explain to me why this system will be sustainable and not result in a giant bubble/crash.
 
The increase in reward was to encourage more masternodes as due to security we were aiming for 2-3 k
Now that incentive stops and the payouts will be locked , miners , MN , funding system when v12 goes live

For MN's you still have expenses running your VPS and such
(Nothing for free in this world)

Bubble !? Not sure what you are saying
 
VPS would only cost $5 per month, but the average revenue at 0.5 DASH/day at current market price is $54. So right now it is very attractive to buy DASH in order to host masternodes, which drives the price of DASH up. If the market price of DASH doubles, now say you have say $90/mo per masternode but still only $5 in cost for the VPS, which makes buying/holding DASH to host masternodes even more attractive than it was before. I am just concerned about the way the market would react to this system
 
TroyDASH said:
VPS would only cost $5 per month, but the average revenue at 0.5 DASH/day at current market price is $54. So right now it is very attractive to buy DASH in order to host masternodes, which drives the price of DASH up. If the market price of DASH doubles, now say you have say $90/mo per masternode but still only $5 in cost for the VPS, which makes buying/holding DASH to host masternodes even more attractive than it was before. I am just concerned about the way the market would react to this system
Click to expand...
It's a incentive, to run a full node. No one is forcing people to buy Dash to set up a Masternode, that's the free market at work. Once you have a Masternode, though, it is highly unlikely you will want to give it up, as it is earning you money just sitting there. It will become increasingly more expensive to buy a node in the future, and eventually will reach an equilibrium.
 
TroyDASH said:
Why do Masternodes receive such a large percentage of the mining block reward? For what purpose do Masternodes receive an *increase* in block reward percentage each month without any particular increase in services provided?
Click to expand...

Masternode reward started out at 10%, then increased to 20% to support only Darksend back then last year. Even with 20% there were still many masternode dumpings when the price plummeted... Then when Evan began to work on InstantX he said it would need a whole lot more masternodes, somewhere around 3000, so that was the reason he decided to increase more reward for masternodes, and this isn't the end of development what masternodes can do to support for other plans in the future.

I can understand the 1000-DASH "staking" in order to limit the number of Masternodes, but the way that the masternodes get compensated with a huge chunk of the normal mining block reward, at practically no cost, makes me suspicious.
Click to expand...

What do you mean "at practically no cost"? Like you can grab 1000 DASH for free from somewhere to create a masternode? I would love to know where. :wink:

It incentivizes people to acquire 1000 DASH *and* to take that 1000 DASH out of market circulation in order to earn continually-increasing returns, both of which drive up the market price of Dashcoins. Somebody explain to me why this system will be sustainable and not result in a giant bubble/crash.
Click to expand...

Without being incentivised not many people would want to run a masternode, this is what's happening with Bitnodes of Bitcoin. A giant bubble/crash? Here's the definition for 'bubble' by Investopedia: http://www.investopedia.com/terms/b/bubble.asp?version=v1

1. An economic cycle characterized by rapid expansion followed by a contraction.

2. A surge in equity prices, often more than warranted by the fundamentals and usually in a particular sector, followed by a drastic drop in prices as a massive selloff occurs.

3. A theory that security prices rise above their true value and will continue to do so until prices go into freefall and the bubble bursts.
Click to expand...
As far as I can remember, Dash (Darkcoin) back in May/June 2014 had its prices up to all=time high and then crashed many times when the masternode system was still in infancy and masternode reward didn't exist, then started to exist at 10%. So Dash price increases and crashes had nothing to do with masternode reward. For many months Dash has had the most stability in price and this is what attracts investors. Will there be a bubble/crash in the future? Your guess is as good as mine.
 
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moli said:
Masternode reward started out at 10%, then increased to 20% to support only Darksend back then last year. Even with 20% there were still many masternode dumpings when the price plummeted... Then when Evan began to work on InstantX he said it would need a whole lot more masternodes, somewhere around 3000, so that was the reason he decided to increase more reward for masternodes, and this isn't the end of development what masternodes can do to support for other plans in the future.
Click to expand...

I highly anticipate future applications of masternodes. Having this multi-tiered system to accommodate extra services is quite innovative. I think though that taking significant payouts from the normal block reward to push the annual ROI much higher than 10% could potentially be problematic.


What do you mean "at practically no cost"? Like you can grab 1000 DASH for free from somewhere to create a masternode? I would love to know where. :wink:
Click to expand...
If the price continues to climb and people can no longer to afford to run masternodes single-handedly, then people will devise a way to start pooling resources to operate a single masternode, and payout all contributors equitably. This might already be happening, but it wouldn't surprise me if anyone would eventually have the ability to invest any amount of DASH towards a masternode operation, and be able to receive the same ROI for their < 1000 DASH, although this would probably require a trusted third party. Anyway, the "no cost" is a reference to the marginal cost to operate and receive payments from a masternode, not the cost to purchase one. And technically the cost to purchase one is also zero because the 1000 DASH are still yours to sell if you choose, it's just a matter if whether you have enough to stake.


Without being incentivised not many people would want to run a masternode, this is what's happening with Bitnodes of Bitcoin. A giant bubble/crash? Here's the definition for 'bubble' by Investopedia:

As far as I can remember, Dash (Darkcoin) back in May/June 2014 had its prices up to all=time high and then crashed many times when the masternode system was still in infancy and masternode reward didn't exist, then started to exist at 10%. So Dash price increases and crashes had nothing to do with masternode reward. For many months Dash has had the most stability in price and this is what attracts investors. Will there be a bubble/crash in the future? Your guess is as good as mine.
Click to expand...

True, but making the incentive a significantly higher ROI than any other investment is a bit of an unnatural jumpstart. Perhaps this is necessary in order to give DASH an early advantage over possible future competing coins, idk. Thanks for taking the time to respond to my criticism. And for the record, I am currently operating a masternode, so obviously I am hoping for the success of this project not failure.
 
Paws said:
I hope I can get my information sorted out here. A master node is essentially putting 1000 o(or more?) Dash into a "savings" account to assist the network in anonymous and quicker transactions, it also means those 1000 will not be immediately dumped to mess up the market. This is about all I could find out in a week or so.

Also there appears to be a requirement of having a Raspberry pi? So, I was a bit late to the scene with bitcoin, but 4 or so years later, I came across Dash and I love it for the reasons I hated bitcoin, the fact that it is much more ASIC resiliant. I was extremely heartbroken to see thousands of dollars worth of graphics cards investment just get completely wrecked in a month.

I love the idea of a more equal playing ground for everyone, I never got an ASIC machine mostly out of my own personal boycott of the idea of all the people I met on bitcoin forums just vanish because of the same reason as mine.

With that said I am interested in setting up a master node but I am also afraid to invest anymore than I already have, with a single gtx 980 that ran me $700 USD including tax, I feel like the required 1000 dash is so far out of reach, over 2 years. Are there any other options that require very little to no more investment to make this a more obtainable goal than 2-3 years? I don't believe I am doing much better than 1 coin every 3 or 4 days at 11 Mhash

I would like to see Dash put Bitcoin in 2nd place someday, with what I feel is valuable technology, it deserves it. Thanks everyone for any information, happy mining.
Click to expand...


if it makes you feel any better my node cost me over 12k when i brought into dark last year.
 
I just want to say, dash's long term success will be based on robust end-to-end solutions... that means every part of the chain, from front to back is important. But in my view, the masternode system is a really good base to work from and I can imagine a whole bunch of services that will eventually be run through it (maybe also with bespoke plugins?)

It also seems to me this masternode system has an element of eating our own dog food (which is good).

Call me crazy but I sometimes think of dash as the debian of crypto (that's a big compliment)
 
GrandMasterDash said:
I just want to say, dash's long term success will be based on robust end-to-end solutions... that means every part of the chain, from front to back is important. But in my view, the masternode system is a really good base to work from and I can imagine a whole bunch of services that will eventually be run through it (maybe also with bespoke plugins?)

It also seems to me this masternode system has an element of eating our own dog food (which is good).

Call me crazy but I sometimes think of dash as the debian of crypto (that's a big compliment)
Click to expand...

You're crazy! If Dash should be compared to any distro, I'd say it's Arch Linux, bleeding edge! :)
 
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