DASH Masternode rewards explained
I am a huge fan of the dash project. I really like there focus on the usability and with "evolution" upcoming and a huge marketing budget which waits to be spend after the release of evolution I am very bullish on DASH.
That said I recognized that DASH masternode payments declined significantly the last weeks and I was wondering why.
Masternode number didn't increase in that amount that it would have explained the decline.
Luckily I have some contact to the dash core team so I asked them what is going on.
From dash core developer Slawek the following explanation came:
Dash in its protocol instead of doing a halving each 4 years has less drastic decline on the reward of -7.14% a year.
The last one happened on 22nd march of 2018 and the actual minimum of MN/miner payout is 1.67 dash, before it was 1.81 dash but it does not mean it will be this low
all the time as if difficulty goes lower then the reward goes up in the quantity of coins and if there are more transactions in the certain block the reward is growing too.
So the block reward just got cut off by 7.14% which perfectly explains my observation. And it will be every year. So next year the minimum reward will be 1.55 dash for masternodes.
But the last part made me wonder. I get that difficulty increases rewards in a given time period for Masternodes as in that time more blocks are found.
But what wasn't so obvious to me in the first place is that also the number of transaction matter. So it seems that also transaction fee are split between miners / masternodes / projects (ratio is 45%/45%/10%). So in case utilization of DASH goes up so does the masternode rewards.
I hope that helped making masternode rewards understandable.
Is the evolution update supposed to let everyone with a DASH balance earn a portion of the transaction/miner fees?
Not that I know of - have you heard such thing or was my post unclear? If you refer to my post I meant that a masternode is earning a portion ot the transaction fees as they are split between miners and masternodes (you need 1000 dash for a masternode plus running the masternode server).
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Greetings, famunger
I think the Cryptomaniac is one of the best among the altcoins. I imagine that in a big bitcoin high, if it happens again, it can have a good market gain. Its technology is very good.
I had already read about this issue of masternodes and I find it fantastic. However, I imagine that I, as the great majority of people, never have enough money to reach this condition, especially now with this currency value.
Her masternodes possibly made a good investment when the coin was worth pennies. These are fine as they have a percentage of profits coming in passively.
Excellent post with your explanation.
Thank you and good morning!
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This is 1st time i am hearing about dash.its price is high.have to learn more aboit it.
yeah brother i m tottally agree with you.....dash project gonna bring new revolutionary......i believe in it.....thanks for shareing this valuable post dear @famunger......all the good wishes for you
This definitely helps! Based on your previous post I tried to find out a good explanation but couldn't find one. Thanks for sharing this @famunger :-)
Yeah I find it difficult to get a precise and reliable explanation. Glad my thread helped also others!
Wonderful post ..thanks for sharing...Best of luck friend ✫
It is a nice post thank you for sharing me I am waiting for your next post
Hm, I have 0 DASH until now - Maybe a good time to get some :D
Yeah I think so. A while ago a masternode was super expensive >1.5 mio - now you are "only" paying 300k.
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