How Shared Masternode Platforms Work!
I am writing this article to shed light on how shared masternode platforms work and how they compare and how they are all alike for the most part when it comes to fees and handling of those fees. I will also be discussing the transparency aspect of of each service when it comes to its platform. All shared masternode platforms sell the coins that they take in fees its clear this is how they stay in business, so let’s take a look at the fees being charged!
There are 4 large shared masternode platforms fee structures I am going to be discussing here CHT, TRTT, MIDAS, and GTM. All 4 have a very similar concept including the operation, function, deposit and withdrawal functions and most importantly the fee schedule.
This is not an article to bias anyone towards a particular service, it is a simple, informative article, for you all to understand how these services operate.
Lets first discuss TRTT’s fee schedule:
This link is their article discussing their rates LINK
Its a long article and can be confusing to some so I will break down what they actually charge users.
Base fee for each Masternode is 5 EUR simply put each Masternode they host they charge investors 5 EUR whether they pay in TRTT or if they pay with rewards from the masternode itself. This equals 0.167 EUR a day for each MN, so let me demonstrate how that works.
We are going to use BIR for the example as each service supports the project.
At the time of writing this article BIR MNS ROI was 114.1600 coins a day at a value of $0.6011 in earnings with BIR trading at $0.005265 or 0.00000067 BTC.
Ok so here it is: EUR to USD exchange 1 EUR = $1.12
Let’s say you have the whole BIR node that requires 40k BIR so your initial investment is at the time of this article $210.60 or 0.02680 BTC.
You host on TRTT shared service with the fee of 0.167 EUR or $0.19 a day for hosting the node for you.
Today you pay TRTT 36.0873 BIR a day leaving you 78.0726 BIR or $0.4110 in earnings daily using their service and paying their reward fee. This equals a 31.61% fee.
TRTT also allows you to pay their fees with their own coin which at the time of this writing was valued at $0.006064 or 0.00000077 BTC. So to cover the fee you would need to have 31.3324 TRTT on their platform every day to cover the fee if not the revert to taking from the rewards.
So recap you will earn approximately $.4110 a day with TRTT hosting your BIR node.
Keep in mind also if you pay TRTT with fees from rewards they don’t actually take the fee from the rewards earned they take it from your holdings instead! So you will actually see lower earnings with them that what I showed you here.
Now lets look at Midas:
This link show their fees as Tariff MN/Month first is fee for MN if paid in the coin itself and the second is if paid with Midas LINK
Base fee for each Masternode is $10 simply put each Masternode they host they charge investors $10 if they pay with rewards from the masternode itself or $5 if the pay with their coin. This equals $0.333 a day for each MN if paid with rewards and $0.167 a day if paid with MIDAS , so let me demonstrate how that works. Now they do alter fees and costs for coins across their platform and charge percentages for some but you will need to calculate your own with those rates we are gonna focus the most common.
At the time of writing this article BIR MNS ROI was 114.1600 coins a day at a value of $0.6011 in earnings with BIR trading at $0.005265 or 0.00000067 BTC.
Let’s say you have the whole BIR node that requires 40k BIR so your initial investment is at the time of this article $210.60 or 0.02680 BTC.
You host on Midas shared service with the fee of $0.333 a day for hosting the node for you because you want to be charged from the rewards.
Today you pay Midas 63.3048 BIR a day leaving you 50.8551 BIR or $0.2677 in earnings daily using their service and paying their reward fee. This equals a 55.45% fee.
Midas also allows you to pay their fees with their own coin which at the time of this writing was valued at $0.2142 or 0.00002724 BTC. So to cover the fee you would need to have 0.78 Midas on their platform every day to cover the fee if not the revert to taking from the rewards.
So recap you will earn approximately $0.2677 a day with Midas hosting your BIR node if you pay with rewards and $0.4341 a day if you pay with Midas.
Now let’s look at GTM:
This link is their page discussing their rates LINK
Its cryptic at best as their advertisements claim they charge $0.11 a day in fees but then also state they charge 2% from rewards for shared masternodes. So not sure which is correct as they have different fee schedules depending where you look (hmmm…..). Anyways we will go with the $4 fee a month which is common amount according to their site.
Base fee for each Masternode is $4 simply put each Masternode they host they charge investors $4 if they pay with rewards from the masternode itself. This equals $0.133 a day for each MN, so let me demonstrate how that works.
At the time of writing this article BIR MNS ROI was 114.1600 coins a day at a value of $0.6011 in earnings with BIR trading at $0.005265 or 0.00000067 BTC.
Let’s say you have the whole BIR node that requires 40k BIR so your initial investment is at the time of this article $210.60 or 0.02680 BTC.
You host on GTM shared service with the fee of $0.133 a day for hosting the node for you.
Today you pay GTM 25.2611 BIR a day leaving you 88.8989 BIR or $0.4680 in earnings daily using their service and paying their reward fee. This equals a 24.12% fee. (If its true this is all they charge)
So recap you will earn approximately $0.4680 a day with GTM hosting your BIR node if you pay with rewards according to one of their fee schedules. Personally I’d watch what exactly you are charged and do your math as there is an issue with consistency with their schedules. If you also tie in the 2% additional as it looks they charge your earnings go down.
Now let’s look at CHT:
Base fee for each Masternode is $5 simply put each Masternode they host they charge investors $5 if they pay in CHTC and the greater of either 4% or $5 if they pay with rewards from the masternode itself. This equals $0.167 a day for each MN if paid with CHTC or 4% or $0.167 a day if paid with from rewards.
At the time of writing this article BIR MNS ROI was 114.1600 coins a day at a value of $0.6011 in earnings with BIR trading at $0.005265 or 0.00000067 BTC.
Let’s say you have the whole BIR node that requires 40k BIR so your initial investment is at the time of this article $210.60 or 0.02680 BTC.
You host on CHT shared service with the fee of $0.167 a day for hosting the node for you.
Today you pay CHT 31.7188 BIR a day leaving you 82.4411 BIR or $0.4340 in earnings daily using their service and paying their reward fee. This equals a 27.78% fee.
CHT also allows you to pay their fees with their own coin which at the time of this writing was valued at $0.544809 or 0.00007035 BTC. So to cover the fee you would need to have .3065 CHTC on their platform every day to cover the fee if not they revert to charging the fee from the nodes rewards.
So recap you will earn approximately $.4340 a day with CHT hosting your BIR node.
Below is a side by side of all the services based on BIR keep in mind that the % will change as value of coins go up and down. CHT actively monitors value throughout the day to ensure the correct fee is taken per reward earning not sure how the others handle this:
TRTT: 31.61% fee or TRTT fee $0.19/day
MIDAS: 55.45% fee or MIDAS fee $0.167/day
GTM: 24.12% fee (unsure if this is all they charge)
CHT: 27.78% fee or CHTC fee $0.167/day
As you can see all service are basically the same with Midas being the highest fee. But only CHT shows the fee being charged on their MN page clearly for all investors to see LINK! The next article I will discuss transparency of each platform and the Instant Node feature that each host, primarily I will bring to light each services practices.
One side not that was brought to my attention by a reader:
Midas charges their fee regardless if you earn anything so if the node does not earn today you still get charged so for instance GIN MNs do not earn everyday yet you get charged daily and even if the nodes go down you still get charged until they put the coin in maintenance mode. This is seen when coins update collateral or have forking issues on their platform at which point you actually lose money with them.
