Disclaimer: Before you continue further, I’d like to clarify that VeChain doesn’t have the typical “masternodes”. They are called Authority nodes / Thrudheim nodes which are in charge of running the network. I included the project because people are searching for Vechain masternodes and wanted to clear out the confusion regarding the project.

Get to Know the VeChain Masternode

So, what is a VeChain masternode and how do you make a profit with it? In this review, I will go over the project and its masternode functions as well as a simplified setup guide and how to obtain rewards. The VeChain project’s main goal is to bring different kinds of businesses into the crypto sphere and make blockchain technology integration easier. The main cases in which the technology is used are cold-chain logistics, automobiles, health care, luxury, fashion, agriculture, and others.

There are no traditional masternodes on the VeChain network. I would like to clear this out right from the beginning. The blockchain has similar technology for the nodes and they are called Authority/Thrudheim nodes and economy nodes. This is due to the network using the Proof of Authority consensus mechanism, which needs an adequate amount of authority nodes to be active on the network to work. Anyone who has at least 25 million VET coins can propose themselves to be a VeChain Authority node, but they will need to pass some tests before they can qualify. And this is only if there is a spot available as the count of authority nodes Is limited to 101 and are being voted on. The main role of the VeChain economic nodes is to stabilize the price of VET coin, hence why they also receive a passive income in the form of VTHO tokens. On the other hand, Authority nodes are the ones that manage the consensus mechanism and validate all transactions inside the blocks.

Keep reading to learn what profit you can expect from the two types of VeChain masternodes and how to set up one.

How to Make Money From VET Masternodes

Let’s talk about the masternode payouts in the VeChain network. There are two cryptocurrencies that are native to the network. The VET coins and the VTHO (VeChain Thor), which is used to pay for transactions in the network. The rewards that are given to nodes are in VTHO, which is based on the amount of VET they have. All nodes receive 0.000432 VTHO per each VET per day, while Authority nodes additionally receive 30% of the transactional fees that are in the block that they produce, while the other 70% are burned permanently.

When talking about VeChain economy nodes, there are 3 types of them depending on the number of VET coins that they hold:

  • Strength Nodes (1mil to 5mil VET)
  • Thunder Nodes (5mil to 15mil VET)
  • Mjolnir Nodes (15 million and up)

These economy nodes are designed to be easy and simple to use and set up. The rewards in the network are distributed every block or every 10 seconds as that is the time between blocks. Please be aware that even VET coins that are held in exchanges receive VTHO rewards, but it is up to the exchange platform to decide if they will distribute the rewards or keep them. For example, one of the largest platforms out there, Binance, air-drops their VTHO tokens once per month.

I should also mention about the X status that a part of the nodes might have. This X status means that these nodes were created earlier than others and were the “early birds” in the network. The nodes with these statuses receive additional rewards. These statuses will not be given out anymore, but you can visit the built-in exchange and buy off someone else’s X status as well as have enough VET coins deposited for the type of VeChain masternode you would like to own.

VeChain Masternode Setup

MINIMUM REQUIREMENTS

Before I move on to the step by step tutorial on how to set up your own VeChain masternode, I would like to share with you the minimum requirements that have to be met prior to the setup process:

  • If you are planning to someday to become an Authority Node for better rewards, you will need at least 25 million VET, obtainable from Binance or Bitfinex
  • You will need a VeVID with verified identity information
  • Download the official VeChain wallet
  • A Virtual Private Server running Linux OS with at least a 4 core CPU, 8GB of RAM, 500GB of SSD storage and at minimum 20MBPS bandwidth without a monthly limit. If you don’t have a provider, you can make use of Vultr as a trusted source
  • In order to be eligible to apply for an Authority position, the Steering and Technology committees need to find one of them no longer viable, so the position is free. If you would like to qualify as a suitable node to be voted up to being one of the 101, you need to have passed all the application processes, deemed suitable and on top of that be randomly selected out of all the other applicants
  • After being selected to become a VeChain Authority node, the foundation will contact you as the owner of the node and assist you from that point onwards how to proceed
  • linux
  • wallet
  • vechain

How to Set Up a VET Masternode Step by Step

  • Set up and configure your VPS covering the at least the minimum requirements listed above
  • Install software that will allow you to remotely access your VPS like PuTTy or other SSH clients
  • Download and install the official wallet, which can be found on their GitHub page or from the link provided above
  • Use the newly generated mnemonic seed on your freshly installed client and make sure to have at least 25 million VET coins in the wallet address
  • Start the masternode – you can launch it from your official VeChain wallet that you just installed and configured

Sean Boyle

HARDWARE ENGINEER

For in excess of six years I have been actively using diverse methods to mine various crypto coins. In search of optimal profitability with limited resources I have engaged in using various masternodes to earn rewards in a passive manner..

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