Swarm, on a mission to achieve a fully decentralized and trusted network has recently revealed its plan to release Swarm Masternodes to be operated by its community. Currently only four Swarm masternodes are supporting the network and are being operated by Swarm, but the blockchain project is determined to deconstruct the current centralized financial models that dictate our investment opportunities by giving power back to its community.
The decentralized model allows individuals to invest, or co-invest, in high-value assets with legally compliant security tokens, knowing they are not governed by any one centralized entity, but rather by many who are also personally invested in Swarm and the funds it supports, and therefore have a genuine interest in the success in which they share.
Masternode operators are incentivized to support the network with block rewards in SWM tokens and governance rights. The more SWM tokens a user holds the more governance they will have in the distribution of funds within the Swarm Market Development Fund (MDF).
10 million SWM are allocated to reward the masternodes over 100 years, as well an additional 10 million SWM allocated for the Swarm MDF, with the 70% of the profits made by the MDF to be reinvested and its distribution decided by the masternode operators. The remaining 30% of the MDF profits is to be shared across all the masternodes, which is accessory to the masternodes primary block rewards.
The reward for masternodes is heavily front-loaded to incentivize and encourage early adopters with significantly greater rewards in the first year, and then to decrease rewards for nodes by 25% each year thereafter over the 100-year period. This strategy aims to rapidly scale the Swarm masternode infrastructure initially, but over time as the value of SWM consequently increases, the SWM value in itself will be enough to provide incentive to continue to running masternodes.
To operate a masternode a minimum of 50,000 SWM must be staked, alternatively a number of SMN (Swarm Master Node) token holders can join forces and co-own a masternode with fractional staking.
Already, over 150 registrations for masternodes have been received, and with the official release planned to go ahead in September this year, it won’t be long now before Swarm achieves its designed purpose to become the universal security token facilitator that allows everyday people to invest in private equity markets.
To find out more or to register for Masternodes go to SwarmMasterNodes.com