Bounty 10 STEEM: Why are Dash Masternodes payments declining?
I just noticed that dash masternode payments are declining quite a lot. First thing I assumed was that the mosternode number must have increased. But looking at Dash stats it doesn't seem like this is the reason. Yes we are at all time highs of the masternode count but it doesn't seem to me as significant that it would explain price drop.
I am offering a bounty of 10 steem to the best answer explaining the reason for that phenomenon. Best with a mathematical formula to explain what is going on.
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I found out why the rewards were declining here is the answer:
https://steemit.com/dash/@famunger/dash-masternode-rewards-explained
Am I now the winner of my own bounty? Somehow ;-) but I won't take it instead I will distribute it among the best answers! Enjoy.
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This seems a bit odd to me as my understanding was that mn get 45% of the reward.
However this reward seems to change and reduce overall over time.
Apprently it has to do with difficulty.... im not sure if any of the below is accurate.
https://www.dash.org/forum/threads/total-dash-per-day-reward.14973/
Link:
Interesting - though the difficulty went down. So it can't be the main reason I guess. But I look into it.
https://www.google.com/amp/s/amp.reddit.com/r/dashpay/comments/3ypi4i/i_am_confused_about_the_mining_reward/
So apparently the payout per block is determined by the difficulty in a way that if more people mine less is paid. So somehow there must have been an influx of mining.... but it does seem rather high.
I am guessing there has to be some form of asics or miners switching over due to asics.
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I don't believe anything has changed fundamentally for Dash. However,
Source
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It's a log, see fig here :
When the number of nodes increase, the 'reward' to be a node is less attractive AND being a node is less needed. It's also a normal phenomenon, in the beginning a lot of people want to be part of something, then when massive adoption has occured you have less and less people adding. The number of dash mined or transfered have nothing to do with nodes, nodes are just people who want to make a crypto live, for wathever reason. What can happen, because we are not in a massive adoption yet for crypto, is something like this :
So one can have any kind of function similar to a log (lot of grow in the beginning, then less), then a new phase of mass adoption, similar to an exponential (growing slowly in the beginning, then more), and again a new log phase, the whole thing being a big kind of log with some oscillation in it.
Thanks for your answer. I get your idea.
For me your answer doesn't match the point that the rewards were declining in the last 18 days while in that timeframe the number of nodes declined (and not increased). So this can't be the answer for my observation.
A reference would be helpful though.
Do u have a reference to this?
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I am not a technical person to help you with numbers, but I believe all this Fud caused by taxes or banning bitcoin have something to do with the drop in price for most stable cryptocurrencies, e.g. ethereum...
Thank you for taking the time to leave a comment - your answer may refers to the dash price but that is not what is concerning me. As a masternode you get paid usually every 7-9 days 1.8 dash. But that changed to 8-9 days and 1.6 dash. That is quite a difference and I am wondering where this is coming from.
I don’t think it has anything to do with that. If I’m correct masternodes get paid in dash coins based on their contribution to the calculations they make for the Blockchain, also known as mining. And to be accepted as a masternode you have to hodl a certain amount of dash.
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could have something to do with either the growth in transactions or lack thereof, which makes mining new blocks faster or slower?
I don’t know how the masternode payments are relating to the usage of the Blockchain, but I would assume this to be the clue.
If not then it would be the fact that as time progresses it keeps getting more difficult to mine new blocks, therefore slowing down mining and with that also the payment for the masternodes.
I can’t give you the math behind that though
Thanks for trying but as @knircky mentioned. Masternodes don't get rewarded by tx fees. Also as my other post shows the difficulty did decline in that timeframe as well. So this also can't be the cause. That is what makes me wonder what the reason behind it is.
No this is not how it works. Tx fees do not impact mn only miners.
Dash master nodes still pretty expensive! Gratz if you got in early!
A bounty of 10.000 STEEM has been set on this post by @famunger! You can read how they work here.
the great post..i like this post..