What are Masternodes?
Masternodes are servers that are established by community members that perform functions like processing swift transactions on a decentralized network. It is utilized to complete unique functions in ways ordinary nodes can’t. Masternodes are a very important layer to GUAP Coin’s blockchain & governance. Masternodes are privately held by individuals or groups in the community known as GUAP Governors. The node itself resides on a Virtual Private Server and in order to possess one you must have 10,000 GUAP Coins to stake as collateral.
GUAP Governors earn GUAP Coins as an incentive to maintain a masternode. The coins they earn are newly minted coins that originate from the blockchain itself. Masternodes earn 80% of the block reward that is generated from the creation of every new block. Which masternode is selected to get the block reward is a random process that increases in complexity as the number of masternodes increase.
Why join a Masternode Pool?
Masternode pools enable GUAP adopters to get in on the rewards earned by a masternode by contributing a small amount of initial funds – rather than purchasing a full node. By participating in a pool you will not have the responsibilities of maintaining a node such as hosting, support, etc. The only downside of joining a Masternode pool vs owning your own is you are ineligible to become a Guap Governor and cannot cast votes on any governance related issue.
Each pool slot will yield 1/100th of the masternode reward. Until block number 500,000 is reached – the reward for each new block found by the node is 40 Guap Coins. The block rewards for every node decreases upon the number of masternodes, so getting in early is key to earning good rewards. At launch, the estimated daily reward share for each slot is about 5 coins per day, and 150 coins per month. Over time this will grow to a consistent passive income for just one initial payment to join.