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Masternodes

Syscoin masternodes are essentially full nodes that are incentivized to stay online and operate 24/7. With 2500~ active masternodes, not only do these nodes increase the decentralization of Syscoin they also provide services to the blockchain. Currently, masternodes provide two services, the first is ChainLocks that increase the security of the chain, over and above the security of typical Proof-of-Work blockchains, and the second is enabling the blazing-fast Z-DAG payment protocol.

Hosting a masternode requires 100,000 syscoin as collateral and while the masternode is active it will be paid regularly for its service. When exactly the masternode is paid is decided by when it goes online, it is added to the end of the queue of masternodes waiting to be paid each block and then will maintain that position in the queue as long as it is live.

The base amount of sys paid to a masternode is 58.62 sys. There are two further seniority levels for when the 100,000 syscoin transaction was sent as collateral as can be seen below.

Seniority LevelPayout
Basic58.62 sys
1 year79.15 sys
2.5 years117.25 sys

There is also a 5% reduction in these fees each year, which will stop at a minimum of 5.275 sys per payout for basic-seniority level nodes, and 10.55 sys for full-seniority nodes.

If you already have 100,000 syscoin and are interested in setting up a masternode check out this guide.