This is only a brief overview to satisfy curiosity. To learn much more, please see the PIVX white paper available here.
What is a Masternode?
Masternodes are nodes running the same wallet software on the same blockchain to provide extra services to the network. These services include:
- Anonymization increased privacy of transactions
- Instant transactions
- A decentralized governance
- A decentralized budgeting system
- Immutable proposal and voting systems.
For providing such services, masternodes are also paid a certain portion of reward for each block. This can serve as a passive income to the masternode owners minus their running cost.
What Makes PIVX Masternodes Unique?
PIVX masternodes are an integral part of the PIVX two-tiered network. The masternode layer is one of two essential layers in the operation of the PIVX network. Unlike the staking of PIV or zPIV, masternodes deliver a regular reward that user’s can count on to provide them with interest for their contribution to the network—staking, in contrast, is a much more random affair, providing irregular rewards sporadically.
Masternodes tend to reward users at a similar rate to staking, with the rate of interest per reward-earning method fluctuating depending on the number of users staking and number of masternodes. Where staking can take place with either PIV or zPIV, masternodes can choose to support zDEX as a zDEX masternode and earn a share of zDEX fees for supporting the operation of zDEX.
How Much Can I Earn?
The rate of interest (ROI) of PIVX fluctuates with several variables dependent on the activity of nodes on the network. As such, no concrete number can be given with any degree of certainty, though earning ~4% even on PIV (traditionally the lowest-paying method of gaining interest) is a safe bet, with other methods a good deal higher.
To learn about reward potential, please visit whypivx and take advantage of the live calculator to discover your PIVX interest earning potential.