Syscoin masternodes are crucial to the functioning of the network in a number of ways. Syscoin masternodes provides the backbone for the patent-pending Level 2 Z-Dag Protocol that facilitates almost instant asset transfer, thus enabling scalability at a superior level.  Regarding this, Whiteblock, the respected and independent blockchain testing company at the time of of the implementation had this to say:

"The Z-DAG protocol is extremely innovative and presents a practical solution for many of the performance issues that are currently bottlenecking the continued scalability of blockchain systems." - Zak Cole, Whiteblock 

The number of enabled masternodes, each requiring a collateral of 100'000 Syscoin, has been steadily increasing, an absolutely crucial metric that speaks for the strength of the network - and of the community. At the time of writing the count is 2062. Almost 35% of the entire Syscoin supply is now already locked up in masternodes!

Rewards for masternodes are high: 75% of each regular block reward is distributed to the masternode operators as an incentive for running nodes. Each payout amounts to roughly 25 SYS, though this increases over time due to the Seniority Benefits mechanism which is illustrated below.  It follows tht the likelihood of a masternode receiving a payout is inversely proportional to the total number of masternodes on the network. Hence, an increase of masternodes will lengthen the time period between payouts.  For the latest up-to-the minute masternode and payout statistics, please make sure to visit https://sysnode.info ,At the time of writing, a Masternode operators receive rewards roughly once every 32 hours. As a seniority benefit, masternode operators receive a 35% bonus to their base reward after one year, and a 100% bonus after 2.5 years. This benefit requires that the collateral for the respective masternode is kept locked up at the same address for the entire qualification period.

The coming Syscoin 4.2 will feature an upgraded masternode network that follows Dash’s new Evo design - follow the link for technical details!. This will introduce numerous improvements in functionality and efficiency. In regard to efficiency, just one advantage will be that masternodes will no longer create unnecessary network traffic such as broadcasting their heartbeat (sentinel ping).

Among the benefits that are of particular interest to to potential masternode operators are a faster, simpler and initial startup process, reward payments become more auditable, and separate keys for owner, operator, and voter (governance), and  improved security.

Owners will also be able to specify their payout address which can be any Syscoin address of your choosing (other than the collateral address). One will  even have the option to pay an operator separately by specifying a percentage of your rewards to be paid to them.

Not everyone wants to deal with setup of masternodes on a VPS (virtual private server) and there are many third parties that are happy to host masternodes, while private keys are retained by the operators. A complete list of masternode hosting providers is maintained at https://syscoin.network/syslinks .

Masternode operators are also key to governance as they are entitled to vote on monthly proposals, typically for application development and marketing. The use of the QT-wallet that is required for running masternodes and voting. At the end of the monthly voting period funds are distributed to the proposals with the greatest number of positive votes, but with at least 10% of all eligible votes. The coins available through governance are declining by design:

For those interested in running a msternode and/or to keep up with the latest developments, please visit the official Syscoin Website at https://syscoin.org or join the Discord channel to chat at https://discord.gg/RkK2AXD . Support Wiki and Discussions can be found at https://support.syscoin.org

And finally, if you are looking for links to media, exchanges, masternode hosting providers, wallets, downloads, latest news, videos, news releases,
social media accounts and more, don't forget to visit https://syscoin.network/syslinks - THE comprenhensive link collection for the Syscoin Platform!

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