Hello Steemians! It's been too long.
The Genesis Network has undergone a significant amount of changes lately.
- Full rebranding of the site/wallet/graphics/etc.
- Truly decentralized web wallet
- Successful masternode testnet
- & more
With the Genesis Network masternode release just days away, we figure we should dedicate a post just to that.
Let’s be honest for a moment, 90% of masternode coins have been a terrible investment. The promise of high ROI PIVX forks mirrored with professional graphics and a pretty wallet make the less well-informed person say, “TAKE MY MONEY”. However, the reality does not exactly match the perception.
Most masternode coins suffer from a pumping and dumping of price, dumping returns, nodes coming and going faster than you can shake a stick, no real roadmap and “devs” ghosting the communities in a blink of the eye.
In the latter half of 2018 when the team at Genesis Network decided to implement masternodes there was a split consensus within the community on whether this would be a good thing for the network or not. After the capitulation of most masternode coins throughout 2018, many investors sneer at the thought of putting their money/time/effort into a new masternode coin.
The Genesis team took this to heart, and we asked ourselves a serious question.
How can we change “masternode strife” perception for our cryptocurrency and promote the opportunities that masternodes can create for the network without having masternode owners constantly dumping rewards?
Genesis Maturity Based Masternodes
When masternode go-live initiates, the total masternode reward will be worth 200 GENX per block.
Typical masternode coins use a round-robin style payment system in which the node owner receives a full reward when it is their “turn”. In this case, this is 200 GENX.
Genesis maturity based masternodes use time (number of blocks) to determine your reward in the same round-robin style payment method. Payments start small and increase towards a “mature” node based on time. Thus, your masternode reward would start at one coin (minimum) and increment until the max reward is met.
This, however, leaves a dilemma. If the reward starts small at one coin, what happens to the other 199 GENX? The most obvious answer would be to burn the remainder of the rewards, however, the team at Genesis thought of a better solution. Why not distribute these rewards to our node owners? These “leftover” rewards are thus considered as “secondary” payments.
How Primary & Secondary Masternode Payments Work?
The first (or primary) round-robin reward starts at 1 and works its way up to a max of 180 GENX per block. This leaves the secondary reward between 199 max and 20 min.
The secondary reward then is split between 20 random (opposed to round robin) nodes across the network per block.
Initially, your node will benefit more from randomized secondary payments rather than its primary payments. Once your node reaches full maturity and there is higher contention for primary rewards - secondary rewards (especially from newer masternodes) will also add a welcome boost to your masternodes income.
Sooooo… My only concern is ROI. What’s the ROI sir!?
Short answer is EXACT ROI is unknown due to maturity time and the secondary rewards structure.
What known is:
- Min Primary Reward: 1 GENX
- Max Primary Reward: 180 GENX
- Min Secondary Reward: 20 GENX/20 random nodes
- Max Secondary Reward: 199 GENX/20 random nodes
- 1440 blocks per day
Using those numbers, you can use the above maturity calculation to determine assumed ROI.
Hopefully, this will answer some of the questions you have been asking. If not, please visit us in our Discord and ask us directly!
- Shelby Sowell
Genesis Founder/Project Manager