What is a Masternode?
Masternodes are a type of architecture that various crypto projects utilize. They are essentially computers or servers that run a token’s wallet 24 hours a day and provide services to the network. These services can include instant transactions, token mixing, and providing security for the network depending on the project. Each project has a set number of tokens that each masternode must hold as collateral depending on the project’s goals. They can be run locally through a laptop or Rasberry Pi, or remotely through a VPS. In return for the services that masternodes provide to the network they are rewarded with tokens from newly confirmed blocks. Each project have different algorithms set in place for when to reward each masternode.
Masternodes on the Crown network are required to have 10,000 Crown as collateral, and a dedicated IP address. Masternodes are paid 4.5 CRW or 45% of the block reward on every block which is distributed to masternodes. As more masternodes become active on the network each node is paid out less, but the network becomes stronger as a result. Having more masternodes set up is a strong sign that the project is building a group of long term investors.
Masternodes on the Crown Network also play an essential role in the governance system. Crown uses a system called the Crown Distributed Governance Proposal (CDGP). In this system, anyone can submit proposals to the network for changes to network or to fund projects that would benefit the network. Decisions are made by Tron operators casting their votes of yes, no, or abstain on any proposal submitted directly in the wallet. The CDGP system allows anyone with improvement ideas to pitch their idea to the community for project funding. A well-defined decentralized system of governance allows the network to endure and survive its original creators.
On the Crown network Masternodes play a more important role than they do on any other project. Crown Atomic adds an API to the Crown network for businesses to be built on the existing Masternode structure. All applications running on the platform will be managed by the masternodes. Any individual with 10,000 CRW will be able to build a Crown network cloud business and benefit from the community and the resources available to them provided by Crown to succeed.