Beetle Coin MasterNode (MN) and Proof-of-Stake (POS) Rewarding Observation
There are three major rewarding systems for cryptocurrency nowadays. The first one Proof-of-Work (POW) applied in bitcoin uses computationally intensive puzzles in order to validate transactions and create new blocks. The second one Proof-of-Stake (POS) [1] choses new blocks via various combinations of random selection and wealth or age. The masternode (MN) is another form of staking. The Beetle Coin [2] applies all of these. MN and POS are focused in this article.
POS is rewarded by creating the new block. One factor of the algorithm to chose the winner bases on the weight defined by the coin age and amount. The coin age means how long you keep coins in the wallet and is reset to zero after getting the reward. Current POS reward is 312.5 BEET before 50000 blocks.
MN gets the reward in the round-robin way with randomness [3]. MNs are randomly selected for the reward in each block from a list once they reach the top 10% of the total count of MNs, and moved to the back of the list. As more MNs are created, the duration between rewards increases. Due to the selection algorithm, there is always an aspect of randomness, but in the long term all MN owners should receive similar rewards. The statistical frequency is determined by the total number of MN. Current MN reward is 937.5 BEET before 50000 blocks and frequency is 17 hours with 458 nodes [4]. You may get 2 rewards in 2 hours because you were the last node in the previous round and the first one in the next round. In contrast, you may wait 1 day without any reward because you are the last in the next round. Moreover, you may wait many days without any reward because you are always not chosen very unluckily even if you’re in the top 10%. No worries, you will be chosen finally and get average rewards in the long term.
To setup a MN, you need 50000 BEET in the wallet and associate them to the MN. Please note this 50000 BEET cannot be applied for POS. If you want to get both MN and POS rewards, remember to hold the MN rewards as the POS coins.
Donation Addresses:
Bitcoin [$BTC] bc1qva36jyaqnwzrupd67u9dpk7jvfqv4uqlm7pc7w
Ethereum [$ETH] 0x1aEEF238961aE4E6a4643B98B3dDd367b8BbdC45
References:
[2] Beetle Coin