Masternodes? Smells like free crypto!

In this series, we have partially described how you can get hold of free crypto in sundry, non-conventional ways. Together with making money on airdrops & bounties, proof-of-stake and hard forks, it’s also possible, for instance, to lend coins to other investors and charge an interest rate. But today we’ll talk about another action-packed way to land crypto in your pockets – masternodes. 

Is a masternode somebody’s master?

samuraiLet’s take one step at a time. How are you going to milk a masternode if you don’t know what it is? If you do, though, just skip this part.

There are very many types of blockchains out there, and all of them work in diverse ways. So far so good. Let’s move on. In the oceans of decentralized distributed databases blockchains there are so-called 2-tiered networks, and this is where masternodes come to meet us.

You know that miners power the Bitcoin network by solving crypto puzzles and running full nodes on their computers. In the DASH network, which is 2-tiered by the way, the miners would have been located only on the first layer, and above them we would have detected masternodes.

So, why do we need those masternodes? Thank you for the question! We need them, basically, to address several important issues: limited number of a blockchain network users, scalability and security.

hard tin soldiers

DASH masternodes are powerful indeed. They reject improperly formed blocks, increase the privacy of transactions, enable instant payments and incentivize more users to join the blockchain by giving away rewards. Here is a direct quote from the website:

Think of a masternode as a savings account with a minimum deposit of 1,000 DASH. A traditional savings account pays interest, and a masternode pays rewards which are very much like interest. In the case of a masternode, the reward (or interest) comes from performing services for the network. Not from lending.

The big difference between a traditional savings account and a masternode is that your initial deposit never leaves your possession.

So, how much is my reward if I run a DASH masternode?

Wait, let’s check if you understand why you, actually, should get free crypto every time a miner discovers new blocks. It was a question. Why?

Because you have an advanced set of capabilities not everybody will be able to set up and run. So, yes. You are very important, and the DASH developers want to reward you for running their soft and the responsibility you take by keeping the network secure.

Score ?

So, back to your question. With DASH, the breakdown is as follows: 10% of the block reward is reserved for the budget system, 45% goes to the miner, and 45% to masternodes. Don’t relax yet. With each block a different node is rewarded, so more nodes means a longer time between payouts. Plus, each year the block reward is reduced by ~7.14%, so miners and masternodes earn less over time.

Nevertheless, at the time of press, the annual ROI for the DASH masternode is ~ 7%.

Are you ready to start investigating master nodes?


There are two good platforms to go if you’re about to check the numbers, such as the masternodes’ ROI. The first platform is called, and the second one is If you know similar websites, please, share them with us in the comments down below, but remember this. No matter where you gather data, try to do it from two or three different points. Because the information might be deceptive or misinterpreted.

Say, you’ve checked 3 websites and like the numbers on one particular node. What’s next? While looking at the node, make sure that you take into consideration not only one or two figures from the websites mentioned. You need to look at the entire project.

Start investigating their GitHub repositories, to see how many people are contributing code. Start joining Discord and Telegram channels, to see how active the conversations are. How many people are involved? Are they not bots? The last thing you want to do is investing in a node that has got a huge ROI but doesn’t have a team or solid channels. Do it an style and never forget about due diligence.

Now, the real present question is, can you afford to stake 1000 DASH?

Do you remember the quote in the beginning of the article? To start a DASH master node, it’s absolutely necessary to deposit funds in your wallet. Right, you will not only have to buy a server, set up an annoyingly complicated soft on your machine but also give away a little something to stake. At the time of press, the 1000 DASH required minimum would cost you ~$95K

master nodes

Right, we could have told you from the very beginning that the free crypto is not, actually, free… But then, again, what would be the chances for you to read this article? 🙂 Here’s a piece of good news. There are many, many much cheaper deals out there. DASH is just the most popular one due to many factors, including its price (~$98 at the time of press)

Here is a couple of interesting masternodes



Coin price: ~$0.78

ROI (annual): ~ 17%

AVG masternode reward frequency: 16h 29m 32s

Required number of coins for masternode: 10000

Masternode collateral: $7896


Zcoin (XZC)

Coin price: ~$5.74

ROI (annual): ~ 16%

AVG masternode reward frequency: 33d 4h 38m 19s

Required number of coins for masternode: 1000

Masternode collateral: $5587

Final thoughts on free crypto with masternodes

As with everything else in a crypto land, investing in masternodes involves risks you should understand ahead of time. Blockchain projects could be scams. The hosting service you need to run a masternode might have issues as well. In a down market, you only get a return on your collateral if the coins you earn are worth enough to cover the fall in coin pricing.  So, remember to be careful, but don’t be afraid too much. At the end of the day, one of those masternodes, not so popular now, might turn into a next DASH, and, finally, you will get… free crypto.

The above references an opinion and is for information purposes only. It is not intended to be investment advice. Seek a duly licensed professional for investment advice


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