Get to Know the Syscoin Masternode
Syscoin (SYS) is an open source blockchain network that acts as a development platform with its own token. The native Syscoin token can be used to make purchases or used for trading with other users. Using this platform, a user can easily create their own token as well. Usually, wallets that are hosted on a computer also act as a node that is running on the network while being limited to sending and receiving currency. Each node represents an individual P2P network, but Syscoin masternodes are different. They are usually run on very powerful server machines and can provide additional services.
One of the main features of SYSCOIN is that decisions are made using a proposal system. The community can make a proposal that costs 100 tokens and then it is voted on by masternode holders. The proposal with 10% favor over the others wins. Some of the other notable features are:
- Governance is decentralized
- Privacy is increased due to a coin mixing function
- Transactions are near instant
- Implemented Z-DAG (Zero Confirmation Directed Acyclic Graph)
How to Make Money From Syscoin Masternodes
The way you make a profit with masternodes is after setting one up to keep it online all the time, meaning 24/7. The plan of the developers is that masternodes will get 75% of the block rewards and split between them accordingly, while the remaining 25% goes to the miners. The yearly ROI you can expect from your SYS masternode is roughly 1%.
In the 2nd stage of the plan for the future, governance will be carried out with the help of a smart-contract enabled massive multisig that Schorr signatures will allow. In this so-called Version2, the inflation will also be reduced from 16.39 SYS per block down to 10 SYS while the inflation for masternodes per year will be 3.8%. The block rewards will decay by 5% every year.
Before you are eligible to receive masternode payouts, you need to wait a set time period that is calculated depending on how many other masternodes there are on the network. Per each, the waiting period is 2.6 minutes. So, if for example there are 500 masternodes when you enter the network, you will need to wait 500*2.6 / 60 hours, making your Eligibility waiting period 21.6 hours. Here is the formula:
Number of Masternodes * 2.6 / 60 = Eligibility Waiting Period in hours
Even when your time has come to receive a reward, you may need to wait even further as payouts are in a queued manner. This means that you have to wait your turn to even receive your guaranteed pay-out.
The way you calculate your average Payout time is by taking the total number of masternodes and dividing them by 60.
Number_Of_Masternodes / 60 = Average Payout time in hours.
So, if there are 500 masternodes including yours, the average payout time can be up to 8.3 hours.
Syscoin Masternode Setup
MINIMUM REQUIREMENTS
Requirements for setting up a single Syscoin masternode:
- In order to be able to host a masternode you need to have at least 100,000 SYS coins, which can be bought from Binance or Bittrex
- The masternodes needs its own wallet where the coins will be transferred to. It will require the Official wallet that can be downloaded from Github
- Minimum requirements for the computer that will host the masternode are at least Single Core CPU, 2GB of RAM, 40GB of free storage space and an SSD Drive, Choopa
- You will need an unlimited bandwidth internet connection that is stable, a static IP address and if your provider has firewalls in place for protection, you need to allow access for your masternode on TCP port 8369
- linux
- wallet
- chaincoin
How to Set Up a Syscoin Masternode Step by Step
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Find a hosting provider that offers Virtual private server (VPS) running Linux 16.04 LTS x64
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Connect your VPS via SSH protocol and update it to get the latest changes implemented
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After downloading the official wallet, install it on the main machine
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You will need to send exactly 100,000 SYS coins to the wallet address for your masternode. Use the Syscoin-QT wallet to process the transaction and enter the following command to initiate the automated installation on the VPS:
bash <(curl -sL doublesharp.com/sys-masternode)
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After completing the processes mentioned earlier, restart your QT Wallet and wait for it to sync with the blockchain network. After that, you can click on the “Masternodes” tab and select your masternode. Click start and write a command on your VPS to check its status:
syscli masternode status