If you’re thinking about getting serious with your Dash investment, you could put your coins to work in a masternode. We’ve outlined the joys of being a masternode owner, but you may be curious to know what the Dash masternode cost is. It’s not free, but as you’ll see you, you can make choices that tailor being a masternode to your needs and budget.
What Is a Dash Masternode?
A masternode is a server that keeps a full copy of the Dash blockchain. It provides the ability to perform specialized tasks related to block validation, as well as instant transaction and privacy features of Dash. Dash’s decentralization is designed to prevent a single entity from controlling a significant block of masternodes. Anyone can run a masternode by providing proof of ownership of 1000 Dash, a Proof of Stake. Dash’s use of distributed servers enables Dash to deploy services quickly and scale efficiently. The network of masternodes makes the Dash network stronger and faster.
How Do You Make Money from Masternodes?
Masternodes earn rewards for providing services and can vote on governance and funding proposals. Dash masternodes earn a percentage of the total block reward, as we described previously.
What Are the Basic Dash Masternode Requirements?
Running a masternode requires:
- Proof of Stake: 1000 Dash coins
- Dash wallet
- A Linux server, preferably a Virtual Private Server (VPS)
How Do I Get Started?
Self-Managed Masternode Hosting
If you’re technically savvy, the most affordable option can be to stand up your own server. You will need your Linux and cloud computing skills, some time, and some patience to build out your Dash masternode. You can host it any number of places, but you need a static IP address and a reliable connection to operate a profitable service.
Managed Dash Masternode Hosting
If you prefer to hire out your hosting, you can pay for managed Dash masternode hosting. At Zaimirai, that’s what we do: we offer a turnkey solution, using self-healing cloud computing to deliver reliable, high-performance hosting. We’re not the only option — you can find others at Dash.org — but we are the best 🙂
Pooled Masternode Hosting
If you don’t have enough Dash to meet the proof of stake requirement, you can join a pooled service. You’ll earn a percentage of rewards less some fees, so it’s “profitable” without having to do any real work. You’re simply joining a group to provide enough of a stake to operate a masternode.
How Much Does a Dash Masternode Cost?
Hosting fees vary based on your hardware, expertise, and commitment level. Keep in mind that cheaper isn’t always better. The reliability of the service keeps your masternode on the list — outages and problems get you off it. The hardware requirements are minimal by modern computing standards, so the computer’s not a huge concern. Taking care of your own technical issues (self-hosting) is less expensive than a managed service.If you sign for a month, your rate will be higher than if you sign for a longer term (e.g., quarterly, annually). You can see Zaimirai’s rates on our pricing page. Short term commitments cost more.
What is the ROI of a Dash Masternode?
Your return on investment depends on how much you spend and how well your masternode operates. You save money by doing work yourself, minimizing expenses. If your server goes offline, for example, you miss out on rewards, reducing revenue. You earn more by investing more Dash (i.e., owning a masternode vs. pooling coins). So your ROI is a fairly dynamic calculation. Factor in things like your time, your liquidity, market trends, and quality of partners. It’s definitely worth doing some homework, specifically asking around in social media, to learn from the experiences of others. Your objective is to maximize your ROI, and your situation will turn the dials — so include some of those criteria when you ask around (e.g., “I have a full stake but I’m not tech savvy” or “I have 100 Dash, I’m risk averse, and I live in the U.S.”). You’ll find some colorful opinions, no doubt, so check sources!