Syscoin Masternodes

Syscoin Masternodes were implemented in Syscoin 3.0, which launched on May 1st 2018. Based on Dash Masternodes, Syscoin enhanced their version to offer governance issuance, seniority bonuses, and high transactional throughput using Z-DAG.

Services and Features Unique to Syscoin Masternodes

What sets Syscoin Masternodes apart?

  • Z-DAG Protocol’s instant Asset transfer
  • Scalability
  • Facilitation of future Syscoin features and services
  • Seniority benefits to masternode operators

Innovations will continue to emerge as the protocol is improved and extended.

Decentralized Governance

How does decentralized governance work?

Each month a pot of governance funding is generated by the Syscoin blockchain ‘superblock’. Any individual or group can submit a proposal to receive some of these funds. Masternode owners vote on the proposals using voting technology embedded in the Syscoin blockchain (accessible via the Qt wallet or syshub.org) and at the end of the monthly voting period funds are distributed to the proposals with the greatest number of positive votes. Successful projects tend to be those that support and advance Syscoin Platform, such as marketing initiatives and application development.

Rewards

75% of each regular block reward is distributed to Masternode operators as an incentive to continue running the node. Each payout amounts to roughly 25 SYS, though this will increase over time due to the Seniority Benefits mechanism. The likelihood of a Masternode receiving a payout is inversely proportional to the total number of Masternodes on the network. At the time of writing, a Masternode is likely to receive a 25 SYS reward roughly once every 24 hours. 

As a seniority benefit, Masternode operators receive a 35% bonus to their base reward after one year, and a 100% bonus after 2.5 years. This benefit is paid only if the collateral for an active Masternode is kept locked at the same address for the entire qualification period.

Hosting Requirements

What do you need to do to host a Syscoin Masternode?

First of all, hosting a Syscoin Masternode requires pledging 100,000 SYS to the network. This ‘collateral’ is sent to a specific address and locked for the lifespan of the Masternode. It can be withdrawn at any time by the Masternode owner. 

Note: the collateral may also be stored in a cold wallet for greater security. 

Further, Masternodes require the following system specifications at minimum:

  • Ubuntu 18.04.1 LTS with C++17 compiler

    + KVM or OpenVZ
    (KVM preferred)
  • 2 Core x64 CPU w/SSE

    (4 Core Recommended)
  • 4GB+ RAM

    (8GB+ Recommended)
    4GB Swap File if under 8GB
  • 80GB+ SSD Hard Disk

    (100GB+ Recommended)
  • Static IP Address

And that’s it!

Are you interested in learning how to setup Syscoin Masternodes?

Would you like to learn more about how to setup a Syscoin Masternode? Check out Justin Silver's blog for a helpful guide which includes an easy-to-use install script, or join our Discord below.