When it comes to masterdome coins it is validation of nodes by “staking” tokens you hold. Meaning, if you act honestly then, just like in Proof of Work, you have a chance to receive tokens for your effort. However, if you do not act honestly then the tokens you stake may be burned. It appears that Masternode coins are becoming very popular. If you own masternodes coin you can be getting some nice rewards from your masternodes. It pays out every couple of hours. However, I don’t like the privacy of masternodes, masternodes are prone to hacks and hack attacks, even if you have respectable VPN provider, so you could lose a lot. Of course, if you trust your VPN providers, or have some good way to protect yourself from hacks, go do the masternode thing. One more thing to mention though never run a masternode on your main computer!