Get to Know the DASH Masternode
A masternode plays a regulatory function in the Dash network by having a full copy of the blockchain. It’s responsible for validating blocks, as well as providing PrivateSend and InstantSend functionalities – which is exactly what they are rewarded for. Dash is the first cryptocurrency project to implement masternodes, hence it is one of the most popular coins when talking about generating passive income with masternodes.
In this short article, you will find all requirements needed to run a DASH masternode, as well as, a setup guide and what its reward is.
How to Make Money from Dash Masternodes
Typically, masternodes are paid different amounts by clients for the services they perform, and on top of that, they earn a percentage of the total block reward – in the case of DASH, 45% of the block goes as masternodes reward, while 45% is given to miners and 10% set aside for governance and/or budget. Keep in mind though, the share for the masternodes is not split equally and the top 10% (which rotate every block) gets the commission. The top 10% of that ranking score (the global list) is called the selection pool, and those are the masternodes that are eligible to receive the reward. Once one receives the reward for a certain block, it is automatically moved to the bottom of the global list.
Dash Masternode Setup
MINIMUM REQUIREMENTS
To set up a DASH masternode on your own you need to fulfil certain requirements:
- 1000 DASH coins, which can be obtained from either the Bittrex or Poloniex exchange
- The official DASH wallet which you can find on the Dash Website
- A Virtual Private Server with at least 1x2Ghz CPU, 2GB or RAM, 16GB of disk space and around 1TB network traffic per month. Contact your provider for VPS services
- A dedicated IP addresses (preferably IPv4), which usually comes as part of the VPS service
- linux
- wallet
- dash
How to Set Up a Dash Masternode Step by Step
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Set up your VPS – whether you do it yourself or choose a VPS set up service provider you have to make sure you have a static IP address. N.B. most ISPs usually give dynamic IP addresses for home users
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Set up your OS and connect to server – a good open source software you can use to connect to the desired VPS service is PuTTY
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Install a wallet – be mindful, because you can only host a dash masternode with the official wallet
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Send the 1000 DASH coins collateral – you have two options here and both are viable – you can send the collateral from a hardware wallet or from the DASH core wallet
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Start the masternode – you can set in motion your masternode from the settings panel of your hardware wallet or the DASH core wallet