Stakenet (XSN) Masternodes Factsheet

jstarhead
jstarhead
Jun 17, 2018 · 6 min read

This sum up is about all necessary information related to the XSN mastsernodes.

1. Stakenet Masternodes

Normally, launching a masternode is a highly technical process and generally goes way beyond the scope of non-technical user’s abilities. Stakenets Masternodes platform solves this issue by providing a simple to implement masternode hosting service that allows users to launch a masternode with incredible ease and no advanced technical ability required. Masternodes or Bonded Validator Systems can simply be termed as the servers of a cryptocurrency. A Stakenet masternode can be any computer that runs on a Virtual Private Server (VPS) and has the Stakenet wallet with 15000 XSN as a collateral number of coins required to run the masternode. Unlike normal nodes, that help the miner in generating new coins, Stakenet masternodes are utilized for verifying transactions, voting system mechanism, etc. So, in a way, the masternode serves the Stakenet blockchain as well as other blockchains that will be integrated via cross-chain support. For users who do not understand the complex mechanisms of cryptocurrency trading and still want to have a passive cryptocurrency income, owning a masternode means that they are involved and making gains even when not trading.

1.1 How do XSN masternodes work?

Each masternodes will store an exact replica of the Stakenet blockchain, thus allowing average users to use thin SPV web, phone, and PC/Mac wallets. Statistically speaking, the average user will tend to want to use thin wallets for greater usability. We believe that to achieve the mass adoption we have planned; a reduced barrier to entry will need to be introduced to the Stakenets users. Masternodes help eliminate the requirement for running a copy of the blockchain on a user’s machine as wallets will connect to masternodes directly and securely.

Masternodes will require a set amount of Stakenet coins as collateral, fully redeemable should the owner ever wish to take their node offline. This is to reduce the financial viability of performing malicious attacks on the network by setting up malicious nodes, as well as, guarantee that only stakeholders in the Stakenet Network can vote on proposals, thus ensuring their quality.

The Stakenet project regards user anonymity and financial privacy as a core value. For a global payment network to be ready for mass adoption, payments between users must be confidential and untraceable, and public addresses used to store funds cannot reveal a user’s balance. To illustrate this point, failing to do so will result in vendors’ inability to set prices and negotiate effectively as both suppliers and customers will be able to see their transaction history, what they charge and what they pay. This is clearly an undesirable outcome that we seek to prevent.

1.2 Masternode config

XSN Core allows controlling multiple remote masternodes from a single wallet. The wallet needs to have a valid collateral output of 15.000 coins for each masternode and uses a configuration file named masternode.conf which can be found in the following data directory (depending on your operating system):

- Windows: %APPDATA%\XSNCore\

- Mac OS: ~/Library/Application Support/XSNCore/

- Unix/Linux: ~/.xsncore/

Masternode.conf is a space separated text file. Each line consists of an alias, IP address followed by port, masternode private key, collateral output transaction id and collateral output index.

Masternode.conf

If you like to add more remote masternode to your local wallet, just add a new line, structured the same way, in the masternode.conf.

1.3 Masternode budget API

Stakenet supports full decentralized budgets that can paid directly from the blockchain via superblocks once the proposal is submitted by the network. Budgets go through a series of stages before being paid:

1. prepare — create a special transaction that destroys coins to make a proposal

2. submit — propagate transaction to peers on network

3. voting — lobby for votes on your proposal

4. get enough votes — make it into the budget

5. finalization — at the end of each payment, proposals are sorted then compiled into a finalized budget

6. finalized budget voting — masternodes that agree with the finalization will vote on that budget

7. payment — the winning finalized budget is paid

Note: A Proposals must be active on the network at least 1 day and needs to receive 10% of the masternode network votes to qualify.

1.4 Several sources of income

To secure the long-term health of the Stakenet Network, masternode operators will have financial incentives to keep their nodes running for extended periods of time, primarily by getting paid for services rendered. These will include the following:

Blockrewards: Masternodes are rewarded with 45% of all blockrewards for providing their services to the network.

DEX trading fees: Masternodes will be payed with 100% of all DEX trading fees, because the Stakenet DEX is run entirely by masternodes.

TOR service fees: Masternodes will receive 100% of all fees for the TOR services, they provide.

Calculation:

This calculation is based on the latest PoS breakdown reward period with a stabilized blockreward of 20 XSN for every newly minted block, because this period will last forever. Let’s assume X Masternodes, Y DEX volume, Z TOR and $$ price for 1 XSN. Keep in mind, that the DEX and TOR volume will be more volatile than the blockreward.

Daily reward calculation for XSN masternodes

1.5 Watchtowers

As of now the underlying technology powering swaps would require what are called “watchtowers” — entities that need to be relied on, holding multi chains, watching and punishing any bad actors involved in cross chain communications. Watchtowers are an important job and a backbone of this cross-chain ecosystem — the XSN masternode network is aiming to be amongst the first decentralized watchtower network providing services not just for our own chain but others could plug into our network and securely, and safely rely on it — allowing groundwork for trustless cross chain swaps and trustless cross chain communication to occur as well. Each of these watchtowers will provide lightning channels for the Stakenet network and other supported blockchains, like Bitcoin. There will be requirements for XSN masternodes to have light channels open totaling a minimum of X amount of XSN per IP. As we expect ~2000 masternodes to be online this will give our network a robust backbone to provide instant, private transactions to occur and liquidity on our lightning network.

1.6 Masternode challenges

Rather than see-saw the Stakenet core team decided it best to implement masternode challenge requirements (sending masternodes a challenge to solve in under a certain amount of time, if they exceed challenge runtime often it will result in a ban). This can be raised to lower MN’s (increase staking) and lowered to raise the number of MN’s (decrease staking). All masternodes would need to update together…There are a few working models currently we can go off of to ensure stability. We don’t believe this challenge runtime would need to be updated often, maybe once a year or even longer if at all. The idea is yes MN’s would need to upgrade the specs — however this would allow many more responsibilities we can give to the masternodes & key features in our roadmap (for example cross chain proof of stake, light atomic swaps, TOR implementation on the MN network would be services provided by masternodes) These may need to be a minimum level of power to handle heavy traffic as we believe these will be very popular features.

In order to compensate the Mn’s for this extra power we have the option of implementing fees on the user when they use these given features which go to the Mn’s providing the service. If masternode owners believe this feature will be popular than it is well worth it to upgrade as the long term ROI will be much higher. In addition TPoS will result in the entire network being more secure than tradition POS as cold storage and offline wallets will be constantly staking & adding extra active pos security to the network, putting less importance on needing active stakers at a given time.



jstarhead

Written by

jstarhead

21st century digital boy

Welcome to a place where words matter. On Medium, smart voices and original ideas take center stage - with no ads in sight. Watch
Follow all the topics you care about, and we’ll deliver the best stories for you to your homepage and inbox. Explore
Get unlimited access to the best stories on Medium — and support writers while you’re at it. Just $5/month. Upgrade