A Guide to PAL Network Masternode Application

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PAL Network

6 min readNov 30, 2018

What is a PAL Masternode?

Masternodes are virtual machines that run PAL Network’s open source software and receive incentives when they validate transactions and successfully create a block in the blockchain. PAL Network’s Masternodes are capped at 21 to ensure efficiency and manageable security while balancing with centralisation. Every Masternode keeps the full copy of the blockchain and differs in functionality from Supernodes as they can communicate with other Masternodes, where a consensus can be achieved with Byzantine fault tolerance (BFT) before adding a block into the blockchain. With such importance, Masternodes adhere to a strict security protocol that only accepts requests from Supernodes.

PAL Network reserves the rights to hold a certain number of Masternodes on behalf of the community for our future strategic partners in an effort to benefit our community.

Eligibility Criteria for Masternodes

The following criteria have to be met in order to qualify as a Masternode.

1) A Minimum of 1 Million PAL:

The masternodes are required to stake at least 1 Million PAL at all times in a dedicated wallet address (after token swap when mainnet launches) which is bound with the owners’ identity. Masternodes will be disqualified if their PAL token amounts drop below the required value. Other conditions can be found in “Masternode Performance Monitoring” section below.

2) A Verified Identity

Applicants (referring to both Individuals and Enterprises) must complete their KYC verification prior to their applications for Masternodes. KYC verification would require information such as name, identity number, passport, contact information (email/mobile), address, etc. Each successfully verified identity will be tagged to a unique address.

3) A Secure Node Environment:

A server or VPS (Virtual Private Server) running Linux is required. Applicants are highly recommended to use AWS cloud service to join the network’s VPC (virtual private cloud).
In order to fulfil our performance requirement of Masternodes, the server or VPS is required to meet the following hardware requirements:

***Note****: The hardware specification requirement may be changed before the mainnet launch upon the collection of more statistical data.*

A secure environment is necessary. The server should not be exposed to any critical or high-risk vulnerabilities based on the industry-recognized vulnerability scanning tools such as Nessus, Qualys. The PAL Team will perform a vulnerability test of the node environment during the deployment process.

4) A Value-Add to PAL Ecosystem:

For the greater interest of the PAL community and steady growth of PAL ecosystem, the applicants should prove their values to the PAL community. PAL Network categorises the applicants into two groups, namely Enterprise and Individual Applicants:

Enterprise Applicants
The enterprise applicants include, but are not limited to, Insurers, Business Partners, Blockchain Companies and Research Institutions.
Individual Applicants
The individual applicants include, but are not limited to, Venture Capitalists, Angel Investors, Influencers and Blockchain Developers.

The applications from either category will be evaluated by the PAL team to ensure the authenticity of information, credibility of the applicants and their value to PAL community. PAL Network may include other specific requirements for applicants as the project develops.

Application Process

1. Prior to Mainnet Launch:

The initial application is only available to those holding at least 1 Million PAL from now till the mainnet launch (after token swap when mainnet launches). Applications can be submitted through the Application Form.

A) Approval and Deployment Process

Upon receiving your application, the PAL Team will review your application based on the aforementioned criteria and select the best-suited applicants.
If selected, the applicant will be contacted by the PAL Team to provide KYC documentation, a proof of 1 Million PAL (after token swap when mainnet launches) as well as the node hardware information. The applicant may be contacted for further information if needed.
If all the information is verified, the PAL Team will contact the selected applicants to perform the deployment. Please refer to the “Deployment Process” section below.
Once Masternode is deployed, the node holder is obliged to continuously fulfil the requirements set out by the PAL Team to avoid losing the Masternode status.

NOTE: The Masternode status is maintained as long as the node holder abides by the performance requirement set out by the PAL Team. The PAL Team has the rights to remove the Masternode status if the node holder is deemed violating the requirement. Please refer to the “Masternode Performance Monitoring” section below.

2. After Mainnet Launch:

Upon successful completion of KYC verification, the eligible applicants can apply for the Masternode through Application Form.

A) Approval and Deployment Process:

All applications submitted through the Application Form would be reviewed and verified by the PAL Team before proceeding to the next stage.
Upon approval, the applicant will be added to the waiting list.
If there is a vacancy (eg. disqualification of an existing Masternode) and the applicant is selected, the selected applicant may be contacted by the PAL Team to verify their eligibility or provide further information when needed.
If all the information is verified, the PAL Team will contact the selected applicants to perform the deployment. Please refer to the “Deployment Process” section below.
Once Masternode is deployed, the node holder is obliged to continuously fulfil the requirements set out by the PAL Team to avoid losing the Masternode status.

NOTE: The Masternode status is maintained as long as the node holder abide by the requirements set out by the PAL Team. The PAL Team has the rights to remove the Masternode status if the node holder is deemed violating the requirements. Please refer to the “Masternode Performance Monitoring” section below.

Deployment Process

The selected Masternode applicants will be contacted by the PAL Team to provide the PAL wallet address, IP address, and specifications of the node environment. The PAL Team will perform a vulnerability scan of the environment before it is placed in production.

The PAL Team will then provide detailed deployment instruction or guide.

The Masternode should confirm the wallet address to receive the block rewards.

Masternode Performance Monitoring

Any Masternode might be disqualified or replaced with a candidate in the waiting list if the node holders are founded violating any of the following rules:

The collateral is below 1 Million PAL (after token swap when mainnet launches)
Any nodes failing to produce 100 blocks during a 24-hour period
Critical or high-risk vulnerabilities are found on the node environment which could potentially damage the interest of the PAL community
Any node holders failing to upgrade the software within the specified timeframe set out by the PAL Team
Any node holders refusing to conduct voting or follow the voting result
Any node holders conducting malicious attacks on the blockchain or other nodes
Any node holders found causing other damages to the ecosystem such as revealing other Masternodes’ IP addresses, etc.

The PAL Team reserves the rights to modify above rules based on the statistics from our testing and mainnet running.

The PAL Team is deemed responsible for continuous monitoring of the performance of all the Masternodes. The warning will be issued to the node holder if any violation is found and the node holder is obliged to explain the cause of the violation within a specified time. The PAL Team will investigate the situation and make a judgemental call. If the node holder failed to explain the cause of violation within the time given after warning is given, the PAL Team reserves the rights to disqualify the node holder without any excuses.

About PAL Network

PAL Network is one of the fastest growing blockchain startup based in Singapore. The company built a dual-layered protocol for financial assets with the vision to build an ecosystem where individuals and partners can design and customise new financial products.

PAL Network designs insurance and finance solutions onto smart contracts within minutes. Through its APIs, PAL Network empowers its partners to cross-sell relevant insurance products at the point-of-demand, thereby bridging the gap between financial products and customer.

PAL Network is a member of Singapore Fintech Association and ACCESS. PAL Network’s affiliated entity, PolicyPal Singapore, has an active user base of 50,000 for its app, which helps users to manage, buy and optimise their insurance policies.

Currently, PAL Network has partnerships with insurance companies, FWD and Ergo, to explore potential use cases of our decentralised protocol together. Furthermore, we have also established collaborations with blockchain projects NEM, QTUM, Sentinel Protocol, MediBloc, Digix and traceto.io to offer CryptoProtect and mainstream insurance products for the projects themselves, along with their respective communities.