Divi Masternodes Explained

by Geoff McCabe, Co-Founder of The Divi Project

Masternode Systems are part of many PoS (Proof of Stake) cryptocurrencies. When a coin holder has enough coins for a masternode, he or she can send a specific amount of coins into a node’s wallet, and they earn newly minted coins when blocks are produced. The system was developed to replace the “Proof of Work” system invented by Satoshi Nakamoto as part of Bitcoin.

The masternode software is really just a different version of mining, with far less power consumption. The masternode communicates with other nodes in the network and keeps a copy of the blockchain, constantly checking and updating it. The software is very cumbersome to install and ordinary users are usually unable to do it without a ton of expert help. When something goes wrong, they often find they can’t get it restarted.

The Divi Project is vastly improving the entire Masternode concept in many ways, such as:

“One Click” Masternode Solution — Ordinary people will be able to use an intuitive interface to easily install it on their hard drive.

Easy Cloud Masternodes — We are working on a simple software interface to let our DIVI holders set up their masternodes in the cloud, working with participating companies that off cloud hosting.

Dynamic IP Masternodes — Currently, all masternode systems require a person to have a static IP address, which few people have at home. Our masternodes will be able to recognize that their IP has changed, and communicate that to the network, allowing people to easily run a masternode from anywhere.

Tiered System — Until now, masternode systems only had one level, so coin holders would need to set up many computers with many masternodes, or multiple cloud hosting accounts. We’re reducing that hassle and expense by creating a leveled system, so that people will be able to accumulate more DIVI and improve their masternode, power, and chance to earn block awards.

Tiered Masternodes Breakdown

1,000 Coins — Copper

3,000 Coins — Silver +5%

10,000 Coins — Gold +10%

30,000 Coins — Platinum +15%

100,000 Coins — Diamond +20%

The chance of earning coins at each masternode level improves linearly with the number of coins. For example, the Gold Masternode is 10 times more likely to earn coins than copper, plus 5% bonus. We believe this system will encourage people to hoard or purchase more DIVI to reach the next level, helping to create a healthy node system.

We’re also looking into the possibility of using different node level to perform different functions within the network.

Governance and Community — Current masternode coins don’t allow for any easy way for coin holders to talk or even find each other. Divi’s new blockchain will p2p and group chat functions, making it easy for masternode holders to form a tight-knit community to support each other, our network, and eco-system.

Cost of Entry — In order to acquire a popular masternode such as Dash or PIVX the cost is around $25k for PIVX, or $270k for Dash. Divi’s masternodes will start much lower, around $600 at the initial coin price.

Intuitive User Interface: All current masternodes use a very similar boring interface that is plain, non-intuitive and lacking in features. Divi’s team includes a world-class UX/UI expert and we will design a user-friendly interface making the process easy and fun. This is probably the most-requested feature across all cryptocurrency masternode communities. We are adding easy-to-view stats such as earnings history, current block, coins in circulation, total global masternodes, coin value in USD/BTC, community proposals, voting % approved, and more.

Masternode Map: We will create a map, showing all the masternodes and how they’re connected. Participants will be able to see basic contact details a photo/logo of other node holders, if they chose to provide it, and their marketplace goods/services. The goal is connection, participation, and fun, but we realize that many people will prefer to keep their anonymity and that will be an option too.


Masternode coins are currently one of the most popular and sought-after types of cryptocurrencies because they inherently offer (via their staking payments) more to a coin holder than other types of cryptocurrencies do. The Divi Project’s masternode system offers the following inherent benefits:

Block Rewards: Divi masternode holders produce a constant supply of new coins for the owner, as payment for helping to maintain and secure the Divi network and blockchain. Coin Scarcity: Masternodes, and staking in general, encourage participants to hold onto their coin, rather than selling it.

Community Building: A coin is only as useful as the community that supports it. A masternode system creates a natural community of stakeholders from around the world, who regardless of race, religion or creed, inherently have the same common goal of supporting and improving the coin’s utility and the technology that backs it.

Owning a masternode gives participants a great sense of pride and belonging to the community. Many opt to own multiple masternodes in a coin with the intent to just sit back and let their coins grow over time as a great source of passive income. One of Divi’s primary innovations is its new maternode system, designed to support the “brand” and encourage community participation by its stakeholders.


The rise and evolution of cryptocurrencies began with Bitcoin. Now almost ten years later Bitcoin still uses the same Proof of Work (POW) mining process to support and run the network. Miners compete to solve increasingly harder mathematical problems to win a block reward. Although POW is effective, it becomes more inefficient as the network grows, requiring special hardware and extremely wasteful energy consumption to keep up with computational demand. As a result, currently this is only profitable for big business setups located where energy is very inexpensive, and POW cryptocurrencies are losing their distributed nature, with the power to control the future of the coin concentrated in just a few entities.

Proof of Stake (POS) is currently the best answer to this problem, since it requires very little electricity and re-democratizes the power to control a cryptocurrency. This is why Ethereum is working to change its technology to POS.

The POS system works by allowing anyone with a computer and internet connection to become part of the network that secures and updates the blockchain. By holding a certain amount of coins in a wallet or masternode, “stakers” can gain a share of the newly minted coins when new blocks are created. These newly minted coins act as payment for their contribution to supporting to the network.

For more information, visit our website: www.diviproject.org