A Guide to Understanding and Operating an Ignitechain Masternode
Ignite Masternode is a server that contributes to Ignite Chain by creating, verifying, and validating blocks of transactions on the Ignite Chain network. Masternode receives rewards in IGT in exchange for its contribution.
Ignite Chain has 251 Masternodes running on a Proof of Stake (PoS) mechanism combined with Proof Of Reward (PoR) consensus to enable high-speed transactions and lower fees.
Masternodes are chosen from the total Candidate Masternodes on the basis of the total highest votes. In order to become Candidate Masternode, the participant is required to deposit 50,000 IGT. The candidate will become Masternode when they are in the top 251 most-voted candidates during the epoch. Each epoch consists of 900 blocks.
Masternode Rewards:
The reward every Masternode operator receive is totally dependent on the number of signatures it signs during the epoch. Every transaction that takes place and is validated, shares the transaction fees as rewards to the Masternode and its voters. Masternode operators and voters will receive rewards at every transaction.
Voters: Voters stake their IGT with Masternode which makes higher chances for master nodes to be selected for becoming validators. Anyone with IGT can become a voter. The total amount of IGT staked by voters makes an addition to the masternode’s capacity. For example, if a candidate node has 15 voters with a total of 15,000 IGT then the masternode capacity is 65,000 IGT. (50,000 IGT Masternode deposit + 15,000 from voters) If a Masternode does not produce a block during the epoch, it is penalized and will not be rewarded for the next five epochs. These masternodes are flagged as Slashed nodes. Slashed nodes will start getting rewards only after it produces a block in the next epoch and if it fails to do so, they will still be in slashed nodes and do not get any rewards.
If a Masternode does not produce a block during the epoch, it is penalized and will not be rewarded for the next five epochs. These masternodes are flagged as Slashed nodes. Slashed nodes will start getting rewards only after it produces a block in the next epoch and if it fails to do so, it will still be in slashed nodes and does not get any rewards.
Benefits of Running an Ignite Masternode:
Transaction Rewards: Masternode receives rewards on each signature sign. The expected reward a Masternode will get is 0.00002625 IGT on every transaction (executed with 5 gwei).
13% APR on Deposit: Every Masternode is able to get 13% APR on staked IGT after they complete 18 months of the time period as a Masternode. It is distributed to the node operator on daily basis.
Whenever a Masternode decides to resign, its deposit of 50,000 IGT will be locked for the next 30 days. Node operator address will only be able to move locked assets after 30 days.
Benefits for Voters:
Voters can earn rewards by staking IGT to the Masternodes. Voters are rewarded on the basis of their share in the total staking amount of masternode. There is no limitation for voters to stake IGT to a masternode. Voters can vote multiple masternodes at the same time to maximize their earning.
Reward Distribution:
Whenever a transaction is validated, the gas fee associated with the transaction is divided into 4 portions:
1. 50 % Validator Reward
2. 33% Transaction Reward
3. 7% System
4. 10% Foundation
The half amount of the gas fee or 50% goes straight to the validator node of the transaction. The validator node distributes it in a 1:1 ratio between masternode operator and voters. The Masternode operator receives half amount and the other half is shared among voters in accordance to their staked IGT ratio.
Masternode operator gets 50% of the validator reward. If a masternode has 100 voters then the 50% of the validator reward is shared among all the 100 voters. The one voter with the highest staking amount will receive the highest voter reward.
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