Investing in a Masternode can sometimes be a little confusing so here’s the analogy
Think of a masternode as a savings account with a minimum deposit of 1,000 DASH. A traditional savings account pays interest, and a masternode pays rewards which are very much like interest. In the case of a masternode, the reward (or interest) comes from performing services for the network. Not from lending.
The big difference between a traditional savings account and a masternode is that your initial deposit never leaves your possession. Unlike traditional banking systems, where your savings are held by a centralized institution, crypto robots also enable automated trading and management of your assets while allowing you to retain control and ownership of your funds.
Primary Function
Masternodes primary function is to relay transactions across the DASH network. Additionally they carry out the anonymization of funds (PrivateSend) and enable double-spend-proof transactions through instant lockdowns (InstantSend). Another major feature is Decentralized Governance by Blockchain enabling Dash to fund budget proposals and finance its own development. In the future even more valuable services will be performed by the Masternode network.
How do I run a Masternode?
In order to run a masternode, a user must put up 1000 DASH as something akin to collateral, though unlike traditional collateral, the Dash never leaves the user’s possession. It can be moved or spent at any time by the user – doing so simply removes the masternode from service and makes it ineligible to receive rewards.
How do the payments work?
In return for providing these services, one Masternode is selected by the network to receive a part of the reward of each mined block. 45% of the block reward is dedicated to this Masternode which at its current rate works out to be 1.94 dash.
Here are some live Masternode Statistics to help you with the number crunching
Current statistics (average from top 5 exchanges, updated every 20 minutes):
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