What are Masternodes

Masternodes are computer servers, setup to serve the users of a particular cryptocurrency. They are a form of a super-delegate on a blockchain with voting rights. Basically this means owning a shit ton of a specific cryptocurrency that allows for masternode payouts. Masternodes manage a treasury fund which ensures the long-term viability of a crypto project. This focuses minds on the long term rather than cycles of pump and dump.

What do Masternodes do

Masternodes generate yield, in crypto-currency. Hosting a Dash masternode generates Dash, a MUE masternode generates MUE. The yield varies primarily according to the masternode count and each coin might have different payout periods. PIVX pays out daily; Crown pays out several times a day.

How to own a Masternode

To create a masternode, a user needs to hodl a specific amount of coin within a wallet. Below is a list I have discovered to contain masternode investing:

Dash Masternode

Coins needed for node: 1,000 Dash
ROI: varies between 4.5% and 18.1%

Crown Coin Masternode / Tron / Thrones

Crown Coins masternodes are called Trons.
Coins needed for node: 10,000
ROI as of 2/3/2017: 58.87%Payout: At current node counts, around four payouts per day. The reason there are multiple payouts per day is that there are more blocks mined per day than active Trons currently. At some point in the future, when there are more active Trons the payments will have larger gaps.

PIVX Masternode

Coins needed for node: 10,000
ROI as of 17/03/17: 39%

MUE – Monetary Unit Masternode

This coin is in the process of migrating towards a masternode system
Coins needed for Node: 500,000
ROI: Still in development

Transfer Coin Masternode

Coins needed for the node: 10,000 TX

Excl coin Masternode

Coins needed for Node: 5,000

On top of the financial aspect, masternodes are a great governance mechanism for decentralised organisations like cryptocurrencies. Owning own is not only about money, but also gives you a voice in the direction of the coin. Personally I think there is a lot to benefit from owning a masternode, or at least owning one with a group of trusted investors, especially if a cheap crypto can be discovered now that has proven itself in the future. Imagine owning a dash masternode a few years ago! I'm currently interested in participating in a PivX masternode, however ideally I would love to own a whole node myself, on a crypto thats much more unknown and cheaper with a great amount of potential.

More information on masternodes can be found Here and Here.