We have recently passed a milestone at Stakenet as we now have 2000+ total Masternodes. Over 30 million XSN is currently locked in our Masternode network, providing a huge decentralized network as a platform to build our interchain economy. As a note, even more XSN is actively staking to secure our network, meaning combined around 68 million of our current 80 million supply is either locked in Masternodes or staking and providing passive income for users.
If you want to learn more about our various staking options then check out this article.
What is an XSN Masternode?
A Masternode is similar to a staking node, but instead of protecting the network like staking nodes do, Masternodes provide services to it. They form a huge network of interconnected computers that are used in benefit of the blockchain.
XSN Masternodes will be our decentralized backbone that provide services for our entire network. At Stakenet, we want to turn the idea of Masternodes into a business for the individuals who own and run them. Owners will be able to select what services they wish to provide and in return will earn additional revenue from those services.
What kind of services can Masternodes run?
Stakenet’s Masternode Network aims to be one of the most powerful platforms in the blockchain industry by having multifunctional Masternodes.
The nature of how our Masternode network is built means that the only real limitations of what services can be created are down to developers and their imagination. A few examples which the Stakenet developer team is working on include:
- Host and run Stakenet DX
- Hosting all the various blockchains needed for the new Multi-Currency Light Wallet
- Handle One-Click Lightning Swaps
- Lightning dApps
- Masternode based oracles/arbitration
- Escrow services
- Hosting of trustless cold staking contracts
- Cross-Chain dApp infrastructure
- Privacy features running through Tor, PrivateSend and Lightning Network
- Hosting Lightning Channels
- Using collateral to provide Lightning Network liquidity
- Watchtower services
- Voting and governance
- Enhancements for Smart Contracts and dApps
Our team is excited to see what third-party developers can create on our platform. What is important to us is to provide a large decentralized platform which is also code agnostic to give developers the freedom to create dApps how they see fit and to not be limited by technological constraints.
What income streams are available with Masternodes?
At Stakenet we want to ensure our Masternode owners are rewarded for helping to create our decentralized network. As standard, all Masternodes are eligible for 45% of the block rewards, so even if you run no additional services you will still earn rewards from these. In addition to that, every service you run/host on your Masternode will collect fees that will be paid back to you for the service you are providing.
An example of this would be running our upcoming DEX, which will be run entirely on Masternodes. All trading fees earned by Stakenet DEX will be paid back to Masternode owners for providing the service on their Masternode.
What are Block Rewards?
Block rewards are new coins (in our case, XSN) created and automatically distributed by the network to users as rewards for its services. At Stakenet, rewards are distributed to stakers and Masternodes on each block creation.
Each block generated 20 XSN and block rewards are split 45% (9 XSN) to Masternodes, 45% (9 XSN) to stakers and 10% (2 XSN) to the Treasury to pay for development.
Masternode owners also handle governance and are asked to cast their vote each month to pass the governance proposal. As no centralized entity owns or has access to the money in the treasury, we rely on proposals which have been submitted and voted democratically by the Masternode owners of the community to release those funds. At present, the proposals released on a monthly basis are for project and developer funding for that month. The Stakenet Self Governance will ensure that every proposal made by the community is democratically legitimatized by itself. Stakenet Masternode owners have voting rights — one Masternode equals to one vote.
How can I set up a Masternode?
Anyone can set up and run a Masternode, and there are various methods to do so to suit everyone's level of technical expertise. You will need the following no matter which route you decide to take:
- 15,000 XSN
- XSN Core Wallet
- A system that can be run 24/7 without interruption
It is the final requirement of requiring a system that is connected to the internet and able to run 24/7 without interruption that means many Masternode owners rent a VPS from a provider and use that to host their Masternode, instead of relying on a home network. The services you can run will also depend on certain technical requirements; the more services you run the more powerful the system running your Masternode will need to be.
If you are interested in setting up a Masternode, you can follow our Masternode set up guide from one of our community members.
Another option is to use our trustless Masternode hosting service (MNaaS). With this service, Stakenet will set up, maintain and update your Masternode for you. If there are any issues with your Masternode that require your attention then you will be emailed automatically to let you know. With this service, you always remain in full control of your XSN collateral from the XSN Core Wallet. Stakenet is working with all of the top VPS providers to ensure your Masternode is running on high quality and stable hardware to provide maximum uptime. Currently, we have over 850 Masternodes running via the service.
If you are interested in running a Masternode via MNaaS, check out our video guide that provides a walk-through of the few simple steps.