Delivering frictionless investment access to Masternodes
We recently discussed the exciting potential of Masternodes to bring new levels of maturity, stability and consistency to the blockchain and cryptocurrency ecosystems.
In this article we offer an overview of what INDX brings to the table and explain how we support the development of Masternodes by making it simple for investors to play a part in this crucial network infrastructure.
Masternodes offer a more secure and scalable alternative to proof-of-work miningfor validating blockchain transactions. Masternode owners and operators are incentivised for the services they provide, similar to miners in the Bitcoin network, but without the high processing and power costs.
Masternodes operate 24/7, meaning that they should offer consistent and predictable returns which are essential for a fund to operate successfully.
Although they are significantly less power-hungry than individual nodes, they do require a relatively high level of technical expertise to set up and manage, both in terms of the technology itself and the security of the wallets that are associated. This places active involvement in Masternodes beyond the casual investor.
Once past the technical obstacles there is the significant step of acquiring the required stake which will be locked up in order to qualify to run the Masternode. For the more prestigious networks this can be prohibitively high. To run a Masternode on the Dash network, for instance, the mandatory stake is in the region of USD150,000, making it a pricey investment despite the undoubted quality of the returns
The search for value naturally turns to some of the lesser known masternodes with their cheaper upfront costs, but there are currently around a quarter of a million individual Masternodes operating across more than 600 networks so there’s a heavy research cost to picking the right one. These networks vary in the value of collateralized stakes, produce differing yields and some can be highly volatile. Deciding where to place an investment requires a significant level of understanding and the environment is extremely fluid at present.
In short, Masternodes would be a superb way to diversify an investment portfolio if they didn’t require such a high level of technical expertise to set up and manage and weren’t so expensive to participate in.
…which is where INDX comes in
INDX is a Masternode index crypto fund. We have developed a proprietary algorithm that examines the performance of Masternodes and selects a portfolio of the best performing ones. The algorithm’s results are validated by a panel of traditional and technology experts.
The INDX system hosts the Masternodes, secures the wallets and collects the rewards. An efficient hedging strategy protects against a flash market crash, while underperforming Masternodes will be removed from the fund as it evolves. Investors can gain exposure to the fund by simply purchasing INDX Tokens once our security token offering (STO) commences later this month.
In return investors will receive quarterly payouts based on the performance of the Masternodes within the INDX fund. INDX actively reinvests a percentage of the profits back into the portfolio, acquiring larger positions and spinning up more Masternodes. This should lead to an increase in the base price of the INDX token alongside the quarterly disbursement. The Masternode community meanwhile will have an opportunity to benchmark performance and understand how it stacks up in comparison with peers. This will help to encourage best practice, which in turn will make the industry more professional.
Our goal is to create an environment where it is possible to invest in Masternodes with the minimum of friction, for the benefit of both the investment and technological communities.
INDX is making it simple to invest in the masternode sector. We want to ensure that everyone can benefit from the digital economy by reducing uncertainty, risk, energy consumption and wasted time. To learn more about INDX, go tohttps://www.indx.capital/
