We're huge fan of dogecoin. Dogecoin is good, but in our opinion it needs a little touch. Thus we came into an idea of putting a reward for masternode and stakers that is why we’ve created Dogenode. The success stories of Dogecoin inspired us to make a Dogenode. This is how cryptocurrency should be.
Making it for fun and giving the benefit to the community is how successful coin works. This is what we want to bring to the masternode ecosystem. Despite of being the victim of pump and dump scheme and exit scam, most masternode coin has lost its real purpose which is to stabilizing and maintaining the network.
Dogecoin vs Dogenode? Are they really want to compete?
Absolutely not. Dogenode is not meant to versus dogecoin. Dogecoin has already been steady and stable in the market, in fact the Dogenode is built from the fan of Dogecoin.
What is Masternode
A Masternode (MN) is a server that contains a full copy of its blockchain, and is used to provide ‘advanced’ (hence the term master) features to its cryptocurrency users. These features include: sending transactions anonymously and ensuring all transactions are validated in near real-time
MN Cryptocurrencies such as DASH have two key actors that help maintain their network:
The first are miners who use hashing (mining) equipment to attempt to solve complex problems to protect the network from attackers.
The second are MN owners, whose nodes provide features such as speedy transaction validation and anonymous transactions. These MN owners are rewarded in the coin that their MN supports for providing the network with these nodes. This is in contrast to cryptocurrencies with standard nodes such as Bitcoin who do not reward users with coins.
Since the start of 2018, a plethora of MN cryptocurrencies have sprung up. In October 2017 there were approximately handfuls. In March 2018 there are at least 60.
Investing in Cryptocurrencies during their first few months of existence provides investors with the opportunity to buy the currency or the master node at very low prices. The investor does so in the belief that the asset will appreciate over time once more users get onboard. For example, a Bitcoin was worth a few cents in the first three months of its existence and ten years later (August 2019) one Bitcoin is worth more than $10,000.
The economic incentive to host Masternodes
MN is essential for the running of some cryptocurrencies such as DASH and QBIC. Users that host MN are rewarded for their work through the daily provision of freshly mined coins which have a value determined by the market. Miners are also rewarded with freshly mined coins.
In this system, all users that provision the network are incentivized towards the goal of maintaining the network so users of the coin can enjoy its benefits. This model works well when the price, and thus the value, of the MN and the coins, are stable or on the rise.
However, when the value of the coins awarded continually drops in value, MN owners have little incentive to hold onto their coins. For many, the most sensible option is to swap the depreciating coin for a more profitable and stable one.
In the early days of these MN cryptocurrencies, when there is no ecosystem and the coin is relatively unknown, very little buying is taking place. However, plenty of MN owners are selling their daily earnings in fear of the currency value decreasing. This results in a race to the bottom, or as the data shows, a steep and swift tendency towards $0.00.
Based on an analysis of all the price data and the economic incentives, it appears that the value of many MN currencies heads towards zero after a matter of weeks.
Every day, consistently, MN owners are selling more coins than investors are buying. A MN owner does not have an incentive to hold the coin because he believes the price will continue to fall rather than rise.
The exception to this is the MN Dash which is the original MN and has a long history of stable or increasing returns.
Some reasons MN owners have little faith in the price appreciation of the MN include:
• The project has not gained traction;
• The project lacks exciting or realistic features in its public roadmap;
• Poor management, or lack thereof, creates a consensus that the project is a scam or a joke.
Does Masternode really a Passive Income?
A very similar thing happened to masternodes. On early 2017 there existed only a very small number of masternode coins. When masternodes.pro came out in the second half of 2017 you could still count the listings on one page. Then too many people jumped on the train. Shitcoin developers accumulated their own old garbage coins and announced masternodes to dump on the fomo buyers. A crazy number of new masternode coins came out. Now we have masternodes.pro, masternodes.online and mnrank.com and e.t.c (many more masternode web stats) and ALL look like coinmarketcap in the meanwhile, having dozens over dozens of coins listed. People were attracted by the sweet promise of earning money from doing nothing and many lost much of their investments.
But why and how did many people lose money with high-staking POS coins (30%-1000% per year or even more) and masternodes? Weren’t they supposed to be a source of passive income?
Well, what happened was that there were just TOO many new projects. So, the fresh money entering these asset classes (building the buying pressure) had to split up too much. The single projects didn’t get enough fresh money to really rise in price or market cap. People got insecure and impatient and sold. The selling pressure created more insecurity and more people sold.
The illusion of passive income
The reason why people are attracted to high staking POS coins and masternodes is the idea of passive income. Who wouldn’t love to get a lot of “free money” each month? And maybe, if compounded, it is maybe even possible to stop working!? Why would someone buy a house for 100k and rent it to someone for 400 USD/month when you can just buy a high-staking POS coin for 1k and get 40% staking rewards per month. That is 400 USD as well, right??? Wrong! Because people forget about one thing: Inflation (the increase of supply of a coin). Masternodes and high staking POS coins would be AWESOME if you were the ONLY person getting those high rewards. But as those projects are often BUILT around the staking and masternodes MANY or probably MOST of the people on board are staking or having masternodes. This means that the ecosystems are subject to a VERY high inflation.
If the buying pressure on the ecosystem is by percentage smaller than the inflation what will happen is DEVALUATION. Example: A masternode coin with a market cap of 4 million has masternode rewards of 120% / year. Let’s say that 75% of the coins are locked in masternodes. So we have an annual inflation of 90% (even a bit more as it is compounded). This means the inflation per month is 7.5%. 7.5% of 4 million equals 300k. This means that a “fresh money influx” of 300k is required every month just to keep the prices stable. And it is getting more every month. If less money is entering the ecosystem or if money is even leaving the prices per coin will go down.
Another example: A high staking POS coin with a market cap of 2 million has an ROI of 720%. 80% of the coins are staked. That means the annual inflation is 576% even if you don’t consider the compounded interest (actually it is a LOT higher). This means the inflation per month is 48%. Consequently, 960k (!) need to enter the ecosystem every month just to keep the prices stable.
So, why we structure the Dogenode?
The success of Masternode coin attracted many new people in a very short time. It is not only attracting buyers and stakers but also influential hypes that shilled (in their youtube channels, discord and telegram groups) too many non-solid high-staking POS coins they accumulated cheap just for a quick buck. Also, shady developers were attracted and created more projects that lured people with a high Return on Investment coin structure.
However due to many exit scams projects, this is so sad and also bring the bad influence for the cryptocurrency in the future. Thus scam developer team make new coin every 2 month, paid exchanges fee, make short run presale and walla, they gone with the wind. After done presale they run away to make another coin and haven’t care about investors’ money, also sell premine at low and down the price. Final result the project is dead. This is not masternode coin should be. Masternode should be the best way to keep your coin invested.
Like mining, the masternode should also have its own fun. We see that dogecoin has made mining and its entire ecosystem a warm relationship between the community. This is because dogecoin has no premine and it is co-mining from day one. Same with dogenode, at dogenode we are just a catalyst for ideas and want to work with the community to improve the masternode ecosystem.
We do not call ourselves an expert in the world of cryptocurrency, as there are many more and more experts out there today who are creating interesting coin projects. But unfortunately there are some who use this expertise to manipulate crypto investors with high ROI promises.
But we came up with the idea that all these masternode owners are contributing to this dogenode project.
DogeNode Coin Specification
Coin Specification. See Table 1 below.
The POW Phase
POW phase will only be used for premine and it is until block 100,000. During the POW phase the reward is 20 NDOGE.
See Table 2 below:
The POS Phase
Based on the PoS Phase Table 3, during the contribution period, the reward per block is 5 NDOGE. The real reward will happen after block 272,222 which is 350 NDOGE per block. The reward will increase and then decrease until it goes back to the previous 350 NDOGE per block again after block 1,000,001 till the end. The table also shows the two stages masternode collateral increases which will happen on block 297,777
HOW WE CONDUCT THE PREMINE?
It is commonly known that in order to run a POS block it requires a certain amount of coin for staking and to setup the masternode. Running a masternode requires a certain amount of collateral coin and this coin will be locked.
So, the premine is used to run the POS block and provide a sum amount of 5000 Masternode to distribute to the contributors as well as investors. It is a huge amount of masternode, yes, but we need to gather all crypto enthusiasm to be part of the community. We call this the contribution period instead of pre-sale. Yes, by observing the success of dogecoin we see, people are not greedy to get. They’re willing to buy dogecoin hodl and trade. The coin holder (stakers or masternode investors or entire dogenode community) for Dogenode we called it Dogenodians. In order for dogenodians to contribute to this Dogenode project where it needs collective funding, It is a one to one ratio 1 NDOGE : 1 DOGE.
Meaning 1 Masternode is equivalent to 250,000 NDOGE and to get 250,000 NDOGE you need to contribute 250,000 DOGE. Regardless of whether the DOGE price goes up or down, you only need to contribute 250,000 DOGE to get 250,000 NDOGE.
Below are the premine allocation structure and addresses for Masternode contribution. Please visit http://explorer.doge.network under ‘TOP 100’ tab for more details
Masternode Distribution Address
We structure the masternode distribution during the contribution period as follows:
There are 4 addresses with different private keys with the total amount of 5000 Masternode NDOGE which is equal to 1,250,000,000 (1.25 Bil NDOGE). Each addresses contain 312,500,000 (312.5 Mil NDOGE)
MN DistributionAddress Quarter 1: dVrdpdNwqGH99uhrwSQAPyoEj5G7vgAJEa
MN Distribution Address Quarter 2: dGKySBJfA2ZyJ76zJVwTt1ygudeepzJJ5Q
MN Distribution Address Quarter 3: dPUHtWxqHLBnutQFS82QLXqU9js6VVgBdB
MN Distribution Address Quarter 4: dNHAPrpSbSqqfyx36ksX8QQjJv1tc1K4ks
Contribute 1 DOGE = 1 NDOGE.
1 Masternode NDOGE = 250,000 NDOGE = 250,000 DOGE for contribution
Contribution Period Quarter 1:
Start time: 5th November 2019 until 5th February 2020. (estimated 3 months)
Distribution: 1250 Masternode from MN1 Address
Contribution Period Quarter 2:
Start time: 5th February 2020 until 5th May 2020. (estimated 3 months)
Distribution: 1250 Masternode from MN2 Address
Contribution Period Quarter 3:
Start time: 5th May 2020 until 5th August 2020. (estimated 3 months)
Distribution: 1250 Masternode from MN3 Address
Contribution Period Quarter 4:
Start time: 5th August 2020 until 5th November 2020. (estimated 3 months)
Distribution: 1250 Masternode from MN4 Address
The premine of masternode distribution is only to provide people with nodes. Undistributed coins will be burnt immediately after each quarter.
The Developer Funds
We keep the developer funds for only 2,500,000 (2.5 MIL NDOGE). The developer fund only will be used when it is necessary. We hope during the contribution period, there is a lot of masternodes online and this will bring benefit to the project as well as funding it. The developer fund also will be used for future development and it is disclosing to this wallet address:
Developer Fund Address: dTFifZCTKMyQ8zYQznhgC2h5QsYogaHD5o
The Early Stage of Masternode and Staking Wallet
We need to setup 2 masternodes and keep the wallet staking at an early stage in order for the chain to works. At the end of the contribution period, masternode and staking reward and all coin from this wallet address will be burnt forever:
MN Staking 1: dSXzheMS3vKDZA1DNyUAp4rRakAsjajJ3L
MN Staking 2: dXMTs4mRMbxQSG9vQzBVEcFPgcQSrQDUGA
Big Stakers (500,000)
Small Stakers (50,000)
This all staking coin will be burnt when the network is stable.
Bounty, Airdrops and Faucet Funds
1 address we allocate for Bounty, Public contributors and Employee fund. It is a total of 20,000,000 (20 Mil NDOGE). The address is here
Bounty Fund: dYvY5kpXEue6Pozz5jcch9ezHXgesbDFZw
After the contribution period, all unused coins will be burned. The burning coin will occur every quarter meaning at the end of 3 months.
Burnt Address: dGBHQJX2wpuaB7xY52gYyKyuAWutzbF3zr
The above address mentioned is the most important to us and the community. It is how we really trust on the Dogenode project and we will keep it
Other Altcoin Participation
And interestingly, we're inviting all altcoin community that has a trading pair with dogecoin to contribute their coin to get Dogenode and to be part of the dogenodians. That's why we don't say it's a pre-sale or a swap, but a contribution by the entire altcoin community. If dogecoin is a coin for fun, then dogenode is masternode coin for fun.
Not A Rush
The dogenode need to run by the dogenodians for approximately 359 days before it reaches block 272,222 which will bring real reward to the dogenodians. The masternode reward is 80% and 20% goes to the stakers. The idea of doing this is we want to invite as many users and community to participate and setup their Dogenode masternode as well as joining our dogenodians community. In return, they will have a little reward during the contribution period which is 5 NDOGE per block and the real reward will run after block 272,222 which started from 350 NDOGE. We created this period of time to distribute NDOGE to the dogenodians in a fair way because we don’t want much inflation during the contribution period and we can conduct many campaigns, marketing, bounty, airdrops e.t.c.
Increases in Masternode Collateral
As the reward goes up, inflation will occur. Inflation is merely a supply of the coin. In a constant supply scenario, the high ROI caused an influx of new investors which cause new coins to be implemented. As the cycle of coin creation (supply) increases exponentially, the inflation in the system grows proportionately.
In the effort to increase the coin locked in MasterNodes we have made a two-stage of MASTERNODE INCREASE IN COLLATERAL which only will happen after block
After Block 297,777 : 500,000 NDOGE / MN Collateral
After Block 397,777 : 1,000,000 NDOGE / MN Collateral
As mention above we target at least 60%, Masternode should be running after the contribution period which approximately 3000 Masternode. After the collateral increase, there is only left 1500 Masternode and additional coin supply after block 222,222 is 9,722,300 NDOGE meaning only an additional of 19 masternode will be available after block 250,000.
The increase of masternode collateral also happened after block 350,000 from 500,000 NDOGE/MN to 1 MIL NDOGE/MN. This is to keep the inflation low and high in demand.
Our main aim is to make dogenode a strong and loyal userbase who use NDOGE as a currency rather than just hold it as a speculative asset and also to create an easy to use transaction platform.
Although, like other cryptocurrencies, Dogenode can definitely be held as an investment through its masternode reward or traded in pursuit of making a profitable return.
It would be great if we could list so many use cases, but we focused on these two things first, building a strong community and making dogenode a daily traded cryptocurrency.
To conclude, even though DogeNode begins with some sort of donation and contribution, we would like to evolve into a genuine and major digital currency.
As Dogecoin possesses one of the biggest thriving communities, full of helpful and friendly members, who are also working to further the adoption of the coin we also have the same vision and mission towards it.
We believe this has been a big factor in the success of any crypto coin and we will follow this path. TRUST.
Furthermore, we also seek the loyal community of Dogenodians constantly uses the coin instead of holding it as purely an investment.
Official Website: https://www.doge.network
Block Explorer: http://explorer.doge.network
Telegram Channel: https://t.me/dogenetwork
Facebook Page: https://www.facebook.com/dogenode