For a crypto enthusiast, there are multiple ways through which he/she can generate a steady flow of income from the cryptosphere, which includes mining, staking, or becoming a masternode of a coin.
Compared to mining and staking, becoming a masternode operator is very less heard of, but is a very attractive proposition and also enables some specific services to the user. They perform the essential functions to keep the blockchain network secure and running.
Setting up a masternode requires the pledging of coins of a particular crypto project you want to become the operator of and keeping your wallet live 24/7. The following is the list of top masternode coins with stable returns and fair masternode policies.
Best Masternode Coins In 2020
Dash is among the first few coins to popularise the concept of masternode and is associated with the idea of masternode since their project started in 2014. Not only Dash popularized it, but it also developed a unique and attractive incentive policy for users setting up masternodes.
It facilitates advanced functions such as InstantSend, PrivateSend, and usernames on the blockchain. Other benefits include voting opportunity on up to 10% of the block reward to community projects supporting the Dash ecosystem.
Dash is considered as less risky and offers a stable return on investment, akin to a bank fixed deposits. To become a Dash masternode, you need to invest in at least 1000 Dash with an ROI of 6.71% annually as per masternodes.com.
PIVX is a PoS coin, which allows both staking and setting up a masternode. The PIVX masternodes are an essential part of its two-tiered network, and providers are offered with a stable reward for their contribution to the network.
A PIVX masternode helps in facilitating instant transactions, decentralized governance & budgeting system, immutable voting systems, and prevention of double spend on the network.
For setting up a masternode, you need to pledge a minimum 10,000 PIVX coin and download the official PIVX wallet. It also requires a VPS to host the masternode itself. The minimum computational requirements are single-core CPU, 25 GB free storage of SSD drive, 1 GB RAM, and 1TB bandwidth for a stable connection.
According to masternodes.com, the annual return on investment is around 10%.
Zcoin (XZC) is a popular coin that aims to increase financial privacy for its users and is the first coin to use Zerocoin protocol on it to enhance confidentiality and anonymity. It is a PoW coin and also has masternodes, where investors can participate via operating masternodes to earn a stable return.
Zcoin masternodes are known as Znodes, and their primary role is to verify the Zcoin transactions and ensure the financial safety of all its users without compromising their freedom and anonymity.
To become a Zcoin masternode, you need to invest at least 1,000 XZC, and an annual return on investment is approximately 15.50%.
Phore is a rebrand of KryptKoin and focuses on reliable, quick, private, and reliable transactions. The main objective of the Phore masternode is to validate transactions and make transactions fast and smooth. The SwiftX feature allows instant verification and allows users to use their funds almost immediately.
The masternodes can also provide services to DApps that run on the network and provide decentralized governance to the network. Further, each masternode will help to vote on future updates and decisions regarding Phore blockchain.
For setting up a masternode, a minimum of 10,000 PHR coins is required, and you can run a masternode on your PC at home. According to masternodes.com, Phore is generating an ROI of around 312%.
Blocknet is a decentralized blockchain platform that provides interoperable blockchain services and microservices to each other in a peer-to-peer fashion.
Being a PoS and masternode coin, the Blocknet reward is split in 70:30 ratio, where 70% of the reward is provided to service nodes or masternodes and rest 30% for stakers. The masternodes is responsible for securing and supporting the Blocknet blockchain network.
The nodes in the Blocknet network are classified into two types, service nodes, and traders nodes. The service nodes don’t control the trader’s coins but collect the transaction fees. And, traders node enables trading in the decentralized exchange platform.
For becoming a masternode in the Blocknet platform, you need to pledge a minimum of 5,000 BLOCK coins, and according to masternodes.com, the annual ROI is around 63%.
ENERGI is a unique blockchain project that aims to solve the issues that are coming in the way of mass adoption of cryptocurrencies and its technology. The ENERGI network has its protocol called Ghost protocol that is a combination of Zerocoin protocol and Tor network.
Further, it is planning to implement atomic swaps that are compatible with the protocol and providing privacy for transactions when different chains are involved.
An ENERGI masternode facilitates level 2 scalability to the ENERGI network and instant send wallet features.
To become an ENERGI masternode, you need to lock in 10,000 NRG coins into your wallet. The masternode operators are entitled to a 40% block reward, and the rewarding system is based on the FIFO method.
This means once you receive the reward, you will be again going back to the queue, waiting for your turn to come.
The yearly reward percentage for masternode operators comes at 122%.
There are many other crypto projects, where you can create a masternode and generate a stable return over time. However, becoming a successful masternode operator depends mostly on two factors.
First, choosing the right crypto project with a clear masternode policy and secondly, buying the coin and setting up a masternode early.
Choosing the project is the key because not all project delivers the intended value or some announce their masternodes to attract investors into the project, but there is no real requirement for that.
Therefore, it is essential to weigh all the factors and risks before becoming a masternode operator as it requires you to lock-in a significant amount of investment.
And, all the coins discussed here have a pretty fair masternode policy, benefitting all the operators. So, if you have any questions or want to share your experience, do write it in the comment box below.