DASH Masternode - Group Buy?

BuggedOut

BuggedOut

Well-Known Member
Silver Stacker
I have been looking into DASH this week and started accumulating some of this crypto. People might not realize that one way it is different to Bitcoin is that the "Block Reward" that goes 100% to Miners in Bitcoin, is split in DASH between 45% Miners, 10% projects and 45% Masternodes. I'll post a video below to explain a bit more about what Masternodes are, but the guts of it is that if you are holding any DASH as an investment, you want to put it toward a Masternode where it can earn income much like a Miner does.

To create a Masternode, you need 1000 DASH and at todays rate that is close to $100,000 AUD. As of right now there are about 4420 Masternodes which means approx (4420 x 1000) / 7233633 = 61% of the circulating DASH supply is being held in Masternodes.

http://coinmarketcap.com/

https://www.dashninja.pl/

https://www.dashninja.pl/blocks.html#perversion

According to the above link the average estimated earnings per day for each Masternode is approx 0.23371 DASH. Multiply that by 365 days of the year and it comes to 85.30415 which (based off the 1000 DASH in the Masternode) equates to 8.5% return per annum (if things don't change - though they most certainly will)

Regardless of the numbers above, however, if you intend to hold some DASH then you want to put it toward a Masternode so that you can generate some extra income. It's better than nothing.

So I've had a look at some options. It is possible to buy "Shares" in a Masternode. Shares can be as little as 25 DASH each and the fee looks to be about 15-20% of the Masternode earnings. That drops the return down to about 6.8-7.2% and is a hefty cut of the earnings in my opinion (but I'll go this way if I have to)

Alternatively if you have 1000 DASH you can outsource the hosting and maintenance for around $110 to $140 per year, which keeps the return up around 8.3-8.4% Obviously this is what I would prefer to do, but I can't really afford $100K, nor do I want to risk that much.

So I'm wondering if there are any SS members out there who are holding DASH and may (or may not) be already invested in a Masternode who might be interested in a group buy. I'm probably good for about 500 DASH myself and would be looking at shares of maybe 100 DASH each to try and get to 1000. Of course all profits would be shared after hosting costs are deducted and I'd need to put a redemption clause on shares (maybe 30 days?) to ensure that the Masternode doesn't get pulled down as soon as the 1st person pulls out and we drop below the required 1000 (this is time we'd use to find a new share).

Of course it is all very risky. The price of DASH is volatile, but I wondered if there are SS members already holding then they might be interested in this. Reply here or send me a PM.

 
I would be interested if it was pivx, and not dash. Seems like pivx is cheaper and has more upside.

10K coins for PIVX is around 21000 USD, compared to Dash. With lesser number of masternodes too.

You can also look at crown if you're into staking as well.
 
We called these routing clients "supernodes" back in the early 2000s when they were developed for the Gnutella P2P network.

Can't see why there would be an issue with network bloat. Back then the clients just had network health monitoring code and someone running a good enough computer might find it got automatically promoted to supernode status (or demoted) as the network required. Burning some extra CPU cycles as a supernode was just the price you paid for being part of a well-functioning network. People expect to be financially compensated for doing that now?

How times change.
 
Altima said:
Not expect, people are being compensated right now.
Click to expand...

Maybe I'm just getting old, but so much of this was figured out ages ago. Trying to price out Sybil attackers with a 1000 buy-in for the masternode is a neat idea, but there are better ways of doing it.
 
I've had a look at PIVX and Crown. They both look like DASH clones and Crown in particular looks dodgy to me so would be very high risk despite the apparently high yield. PIVX is doing Proof Of Stake which is really the only major technical difference to DASH and the only thing I'd consider remotely "innovative".

I know the buy in for DASH at this point is high, but with a large development budget now and 1st-to-market advantage with the 2-tier network and instant send capability I see much greater difference between Bitcoin and DASH than I can between DASH and PIVX. I don't really see how PIVX catches up to DASH from here unless DASH drops the ball or PIVX comes up with something new.
 
DASH is to expensive and was instamined, i am always dubious of it. TX is a coin with masternodes on the rise. I was staking it for 18 months
 
Bugged, are you still trying to get a DASH masternode up and running? With the price of PIVX as it is, it seems like a better value proposition.
 
Altima said:
Bugged, are you still trying to get a DASH masternode up and running? With the price of PIVX as it is, it seems like a better value proposition.
Click to expand...

I'm still keen on DASH but I'm left with a choice of investing in master node shares or borrowing to get the required 10,000. That means either counterparty risk or over-leverage....not a great choice.

I've noticed that in the last week PIVX has dropped something like 40%. If it was a share price I'd call it a pump and dump but I know in crypto land this kind of volatility is normal with smaller coins. Certainly the entry price is lower now and I do consider PIVX to be probably the best DASH clone. I don't like clones but they do often move with the original so am considering that PIVX may be an effective investment proxy for DASH, at least in the medium term.

I'm still looking into it but at this stage I'm thinking I wouldn't want to commit to more than $10K on PIVX and I'd have to read up on node/wallet specs and do some numbers on ROI after hosting costs before confirming but I can possibly do that next week. If you're serious send me a PM with a number in it.
 
willrocks said:
Seems like a big outlay for a 8.3-8.4% return. Just buy & hold some BTC to get that same return in a week.
Click to expand...

It's a bit like buying shares....do you want the capital growth or dividend yield....or both?

BTC has had good growth in the past but the scalability issues are limiting growth at the moment and there is zero yield. DASH has both growth AND yield prospects to my eye.
 
I am also surprised (and disappointed) that PIVX isn't traded on Poloniex. I will need to get an account setup with Bittrex next week too. My TODO list seems to be growing.....
 
BuggedOut said:
I am also surprised (and disappointed) that PIVX isn't traded on Poloniex. I will need to get an account setup with Bittrex next week too. My TODO list seems to be growing.....
Click to expand...

Well there is this running joke that DASH is trying really hard to not let PIVX get listed on Polo cos they're directly eating into their market share.

At the moment, I'm only staking my PIVX coins and I get some tokens every few days. Would be nice if I could find the cash to set up a masternode in a raspberry pi running 24/7. That would be pretty sweet.

FYI, you can refer to this for the payout for Masternodes and the expected ROI

http://178.254.23.111/~pub/DN/DN_masternode_payments_stats.html
 
I picked up some PIVX today on Bittrex and will have a dabble with the Proof Of Stake next week.

From a technical analysis perspective it looks like it's sold off a bit this week and may be ready for a bounce. DASH and Ethereum have been going great the last 48 hours tho....maybe PIVX will ride those coat-tails ;)
 
You can have a read here :-

https://www.dash.org/masternodes2/

There is no limit on the number of masternodes, but the block reward is shared amongst them so the more there are the less your share - its a really just a fairly basic supply/demand market mechanic.

My understanding is that you don't need to store or transfer the 1000 DASH *into* the masternode. You just need the public key for where the DASH are stored as part of the masternode configuration and my intention was to store my DASH in an offline cold wallet (I use a KeepKey) so that it is most secure. So yes, you can liquidate or spend the 1000 DASH any time and it just invalidates the masternode earnings. My intention with the group buy was to put a 30 day or so limit on withdrawal however, which was primarily to give time to find a new shareholder or give notice to all that the masternode was being wound up. Last thing you'd want would be to set it all up and have someone pull their DASH and effectively kill the earnings from all the others with no notice.

Here is some further info about masternode hosting providers if you want to read more :-

https://dashpay.atlassian.net/wiki/pages/viewpage.action?pageId=1867885

^ Again, it should be possible to outsource the masternode hosting while maintaining full control of the qualifying 1000 DASH.
 
When I started this thread 2 weeks ago DASH was about $75 USD and after last nights price spike its now over $102. I'm happy with a 36% return on my investment so far but I really should have gone at this harder and faster (damned due diligence!!)

I honestly believe that if all the features of DASH work as intended and the Evolution update puts a nice front end on it for widespread adoption then this thing is going to be better (and eventually bigger) than bitcoin. It might take years but hopefully I will have time to get well positioned. I'm almost disappointed to see the overnight price action because I need more time for diligence, to accumulate and set up for it.
 
On the bright side, PIVX has also been spiking so my investment in it yesterday is already well in the black too.

It seems to be validating my theory that PIVX may be an effective investment proxy for DASH. I don't know if that correlation will hold once Evolution comes out though.
 
Wait till you start receiving the minted tokens as part of your staking efforts. I just received another 4 PIVX tokens this morning.

Best feeling ever!
 
Hmm, so far I've received 22 minted tokens by staking. So that's worth around 38.5 USD or around 51 AUD.

Granted it's not that amazing compared to if you had a DASH masternode, but it's free tokens. Obviously if I had the cash and set out to do a proper masternode, I should be receiving more tokens everyday.
 
You must log in or register to reply here.
Back
Top