Dash Staking Guide

Holders of DASH that run a masternode receive ~ 7% annual block rewards.

Staked
Staked
Feb 15 · 4 min read

Staked provides a service that allows holders of Dash to get the benefits of running a masternode without the upkeep, while allowing holders to maintain custody of their crypto assets.

Token Economics: 2/11/19

https://masternodes.online/currencies/DASH/ is a great resource for real-time DASH network metrics.

Overview

Dash is a fork of Bitcoin that was created in 2014 to provide anonymous, trustless and nearly instant payments. Dash was previously known as XCoin and DarkCoin before re-branding to Dash in May 2015. The current yield for operating a Dash masternode is 7.01%. Dash block rewards are split between PoW miners (45%), masternode operators (45%) and Dash Project Treasury DAO.

The current block reward is 3.35 DASH, or 1.5075 for miners, 1.5075 for masternodes, and .335 DASH for the DAO per block. Dash features a block interval of ~ 2.5 minutes and ~ 550 blocks per day.

Masternodes

Dash masternodes play the same role as full nodes in the Bitcoin network. A deterministic algorithm is used to create a pseudo-random ordering of the masternodes.

Each masternode requires 1,000 DASH as collateral. The 1,000 DASH are used as bonded collateral and required to earn the inflation funded block rewards. The collateral is always safe and never forfeited during masternode operation.

Since masternode rewards are fixed at 45% of the block reward, or 1.5075 DASH per block, and the number of active masternodes on the network is dynamic, expected masternode rewards will vary according to current total count of active masternodes. Masternodes are currently yielding ~ 7.01%.

The average Dash masternode reward frequency is just shy of nine days.

Below is the daily, weekly, monthly, and yearly income for a Dash masternode.

Governance

Dash masternodes are responsible for Dash’s governance. The DGBB or Decentralized Governance by Blockchain system allows masternodes to vote on proposals, which are then either implemented or not by Dash developers. An example of this is the 2016 block size increase, where the proposal to increase the block size from 1MB to 2MB was submitted and approved by vote within 24 hours.

Since 10% of the block rewards are used for the development, the DGBB also provides a mechanism for Dash to fund its own development. Budget proposals are submitted up until the end of the month. A series of superblocks or special blocks that pay out funded budget proposals approved by masternode votes are created if the proposal is approved by 10% of the masternodes.

DASH Masternode Instructions

Masternodes are originally formed by sending 1,000 DASH to a specific address in a wallet that will “activate” the node, making it capable of being propagated across the network. Step-by-step instructions follow:

Select Tools in the Wallet Navigation.
In the Tools drop down, select Debug console.
Create a new address to hold your collateral by entering “getnewaddress”.
Send exactly 1,000 DASH per masternode to the address you want to hold the collateral in.
Save your transaction ID (txid) by selecting Export, then send it to dash@staked.us.
Select Tools in the Wallet Navigation.
In the Tools drop down, select Open Masternode Configuration File.
Staked will provide you with a masternode configuration line, which you will then into the masternode configuration file.

About Staked

Staked provides a service that allows holders of crypto assets to get the benefits of running a node without the upkeep, while allowing holders to maintain custody of their crypto assets.

Staked operates highly available and highly secure, institutional grade staking infrastructure for leading proof-of-stake (PoS) protocols. The Staked infrastructure is deployed in a multi-tier signing and listening cloud configuration that combines geographic diversity and redundancy across on premise data centers and cloud providers. We use Google’s Kubernetes container orchestration to achieve near-infinite scale, self-healing and hardware decentralization.

Staked

Written by

Staked

Staked operates highly available and highly secure, institutional grade staking infrastructure for all of the leading proof-of-stake (PoS) protocols.

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