Tomo Cheat Sheet #2: Masternodes on TomoChain
The first basic notes for newbies about setting up a TomoChain's Masternode.
This article aims to provide a complete overview of Masternodes on TomoChain, by answering 4 most asked questions from newbies:
- What is a Masternode?
- What role does a Masternode play in TomoChain’s ecosystem?
- What incentives TOMO holders to become TomoChain Masternodes?
- How to become a Masternodes Candidate on TomoChain?
1. What is a Masternode?
A masternode works like a governing hub on a decentralized network.. It has the managing role of powering the blockchain network by processing transactions and signing blocks. Masternodes are full nodes that incentivize node operators to perform the core consensus functions of running a blockchain.
If the blockchain were a factory, we could simply imagine that:
- Nodes are the workers because they are the foundation of a cryptocurrency, with purposes to prevent double-spending and to secure the blockchain. Nodes are rewarded by contributing to block creation and network consensus.
- Full nodes are the factory foreman. Full nodes contain the entire copy of the blockchain in real-time, whereas an ordinary node does not contain any copy.”.
- Masternodes are the factory managers. Masternodes are full nodes with extra capabilities — they perform different types of services, such as instant send, private send, and storage of the full blockchain, for which they receive block rewards. Masternodes are full nodes in both PoW and PoS
2. What role does a masternode play in TomoChain’s ecosystem?
While many coins like BTC and ETH are actively reaching consensus through the Proof-of-Work (PoW) protocol, Masternode on TomoChain operates based on Proof-of-Stake (PoS).
A TomoChain Masternode is a server that uses its computing power to contribute to the network. Its job is to create and sign blocks. For this contribution to the network, Masternodes receive rewards in the form of TOMO.
TomoChain Masternodes are elected using the PoSV (Proof-of-Stake Voting) consensus via our governance Dapp TomoMaster by the TomoChain community, where TOMO holders vote for one or several Masternode Candidates by sending TOMO through a smart contract mechanism. Top 150 most voted Candidates become Masternodes. TomoChain has 150 Masternodes coming from all around the world and thousands of stakers at any given time which everyone can check at TomoScan and TomoMaster. In comparison with other platforms, TomoChain is decentralized and definitely one of the most community-based projects so far.
3. What are the incentives of a TomoChain Masternode?
Participating in TomoChain network as masternode candidates ensure you a stable Return on Investment (ROI) rate and zero risks, despite the unexpected market price fluctuations and current exchange security problems you may encounter while trading. Regular rewards will be automatically distributed to the masternode owner’s wallet after every epoch (approx. 30 mins), being constantly recorded on TomoScan and displayed on TomoWallet.
Different approaches to becoming a TomoChain’s masternodes generate different ROIs. More details will be given below.
TomoChain’s 150 masternodes consists of both self-run community’s nodes and highly-reputed blockchain names like Binance, CoinGecko, Kucoin as a part of our network.
4. How to become a Masternode Candidate on TomoChain?
There are 2 main ways to run a masternode on TomoChain, suitable even to non-tech background users.
4.1. Direct Masternode setup
TomoChain provides a set of UX/UI tools that support both web-based and mobile versions for users to easily track their node’s as well as competitors’ status. This is the most secure way to implement a Masternode since it is directly supported by our team regarding any difficulties along the way.
Once set up your own masternode on TomoChain, annual ROI can come up to 34%, which is 3–4 times higher than annual Staking ROI (up to 11%), and also more profitable compared to other platforms. See table below for more details:
There are 2 main steps to become a Masternodes Candidate on TomoChain: 1) create a TomoWallet and 2) deposit at least 50,000 TOMO.
To keep track of how much TOMO you need to stay within top 150, log into TomoMaster.
In order to directly set up a Masternode on TomoChain, you need to choose a VPS hosting provider which you want to utilize. You could choose one of the sample providers such as AWS (Amazon), DigitalOcean, GCE (Google), Linode, OVH & Vultr.
A quick look at the technique requirements for running a Masternode Candidate on TomoChain (on Mainnet):
More on how to step-by-step set up a Masternode on TomoChain:
- Quick guide
- TomoChain docs (full version)
4.2. Indirect masternode setup
This method refers to services developed by third parties to serve Masternode settings on TomoChain. TomoChain Pte. Ltd. is not associated with, and does not itself support for, or claim to be in partnership with any of the service providers mentioned below. TomoChain Pte. Ltd. will not be responsible for any problem, because the support tool for using the product is decided by the developer. In case of issues, users need to contact the respective party’s support team. So far, the services we recommend below are built by reputable and verified developers (at the time of publication).
4.2.1 Via Decentralized Cloud Platform
If you belong to team non-tech savvy and blockchain enthusiastic, there are other decentralized cloud options available involving the help of a third-party. The third-party service will take care of your masternode, maintain it for you and resolve any technical problems which may occur along the way. If chosen to partner up with these services, users need to pay a small fee to the third-party.
Below are a couple of service providers in which you can set up and receive the full support service to maintain your masternodes.
- Ankr Cloud makes infrastructure for deploying any blockchain node easy, accessible, affordable, and instantly distributed across the globe.
- Threefold network: The world’s largest Peer-to-peer cloud: Own 100% of your deployments and ensure the correct execution of workloads via Smart Contract.
4.2.2 TomoPool service
TomoPool is a staking service that allows TOMO holders to launch, vote for and earn passive income from staking pools without having to deposit 50K TOMO.
TOMO voted via TomoPool acts like a stock share of a masternode, generating higher ROI than staking the original way, but lower ROI than the masternode owner themselves.
Some TomoPool's key notes:
- A fee of$100 is required for pool owners to launch a new pool.
- Reward ROI: receive half of ROI of direct masternode owners
- Each individual pool has a separate Dapp; harder to track total rewards.
- 2 days liquidity unless unlikely event of stakers deciding to resign (66% agreement). If there is resignation, the portion takes 30 days to be unstaked.
TomoPool Dapp can be found only on TomoWallet under the Applications section, its web version is not available. More TomoPool’s features and questions can be checked via https://t.me/tomopool/
The term of a Masternode may sound intimidating at first, but eventually, become very simple and straightforward to understand. Becoming a TomoChain’s masternodes will not only enable users to generate constant rewards but will also contribute to the strength of our network.
About TomoChain
TomoChain is a scalable blockchain-powered via Proof-of-Stake Voting consensus and used commercially by companies globally.
Our mission is to accelerate the onboarding of millions of users by empowering today’s applications with technology that masks the friction of Blockchain, all while retaining its underlying benefits.
TomoChain’s technology and DeFi-focused flagship products include:
- Fast & Near-Zero Fees: 2000 TPS, 2-second block time, ~$0 gas fees, and EVM compatible
- An array of original features and protocols is designed to support speed, privacy, usability, and liquidity needs all in one platform.
Find us on
Website: tomochain.com
Telegram: t.me/tomochain
Twitter: twitter.com/TomoChainANN
