So basically the average returns is about 3.5% which is the estimation at the moment. That’s basically great CD or a mediocre dividend. Will Cardano have a masternode in the future? It appears coins that have masternodes make around 10%-200% (some make much more but majority of these coins are worthless). A masternode would really make this a long term investor friendly coin. I think setting it to 10,000 coins as a minimum to have a masternode is a fair amount. Some coins go up to 100,000 which would be about a half bitcoin of cardano.
Hello,
I was wondering if Cardano is considering setting up a masternode? Other coins like NRG, Dash set up a minimum amount of coins to qualify for the masternode (10,000+ coins or so), then once one sets up the node they earn around 10%-200+% returns per year. I believe an implementation of this masternode would attract many long term investors instead of the short term people who just dropped Cardano’s price in half after bailing this month. This would create more stability, longevity and increase the pace of mass adoption. Lastly, a 20 page peer reviewed article or multiple peer reviewed article would be superfluous as there are plenty of examples that have set the standard and have been successful with the implementation of this Masternode so Cardano can just build on what has already been done and improve on it.
Masternode networks have illegitimate claims to being a decentralized network, plus it is a pay to play system that favors the rich (in a sense), if one chooses to run a node on Cardano to validate transactions all they need is the equipment (a Rockpie @ around $100.00) and 1 ADA @ around $0.06, my wife and I received our Rockpie today, I have at least one ADA in a jar somewhere, so if we are willing to secure the network with our small investment of $100.06 to keep it decentralized then what value does a masternode have except to reward someone that is willing to set aside more value? These scheme crypto’s you mention are rewarding the rich for bieng rich - pretty much exactly what Cardano opposes as Cardano embraces the idea of equality regardless of your wealth.
Masternodes were a great idea when the protocol proposing it was worth next to nothing with a great idea in the infancy of blockchain, but now with the multi faceted paths a blockchain protocol can take to succeed Masternodes are more like a liability to the network , they are just a bad idea, trusted pools - or nodes - based on uptime percentage is much better than rewarding some rich crypto enthusiast that has a bunch of coins to invest to be a masternode.
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It doesn’t have to be for the rich. You can keep it at the same affordable price or have it rewarded to those who contribute to cardano with becoming an ambassador or something or give it to them at a discounted price. For an affordable price it can be a 2 week paycheck for the average human globally. Therefore this wouldn’t be an unfair advantage it would just provide an incentive to invest or to invest at all and to ensure that one stays long term or for life as well. Also, if you’re worried about the difference between wages by country you can always just make it the average 2 week paycheck for each country or it can be rewarded to those who work for or contribute to the improvement of Cardano. Again, this wouldn’t and doesn’t have to favor the rich or the poor and everyone on earth will have an equal opportunity to invest and it would incentivize people to stay for life while providing better returns on their investment. In the end if this project wants public mass adoption they will have to do more than just talking to governments or creating a ton of peer reviewed articles. Most people on this earth are motivated by money and even though Cardona has a ton of great things going for them, if the ROI isn’t great well most people will often just pass because they do not care or share the same vision as the dreamers that want to change the world. Personally, I do believe in this coin because it’s set up for the long haul but I would just like to add my two satoshi’s so that it could potentially be better and grow faster.
10% to 200%, and the network itself pays for it, without printing ADA - if you really think this through, there’s no way this is sustainable. I mean at all.
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What percentage is sustainable then? I believe if Cardano sets up an exchange of their own and allow the fees to go to the cardano holders/stakers (higher ROI’s for long term stakers) then they could easily have 10-80% ROI per year. On top of that the returns could be given in other coins and not ADA. See, you just have to think outside the box and anything is possible. Never say never.
It’s not about maxing ROI, it’s about tipping the scales juuuust towards growth
We don’t need to max ROI’s but at least more than 3% wouldn’t hurt and it would increase growth especially if you do not require 10,000 coins to earn something more than 10% like many coins with masternodes do like Dash, Energi, etc. Just a 10% ROI without having to lock in your coins and only needing one ada to stake would give ada a vast advantage over any coin today by far (with exception of Nash as they will be offering potentially up to 75% ROI but you must lock in your coins for 2 years like a CD).
But it might hurt. It might cause a crash.
Balancing an equilibrium does not give you very playful parameters
If you read the papers about incentives and game theory you can see that who is interested in running a Cardano staking pool, has to pledge a certain amount when he register the pool. This pledge appears on public (in the wallets stake delegation GUIs) and allow that pool to have a higher revenue.
So Cardano has no hard coded and unflexible “minimum masternode” amount, but a smooth rule allowing you to decide whatever amount you want to pledge. If you want to earn more feel free to pledge 10k, 100k or also 15.000.007,00123 ADA. It’s up to you.
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Hi,
I am surprised no one has brought up this extremely simple and glaring problem. Ada scan reflects for the past two months ADA rewards of of no more than 250-500 ADA per day, on approximately 1-3,000 transactions consistent for the past two years. If there are not enough transactions on the network and tons of stakers, how would anyone earn staking rewards? Why has it not been communicated to the community NOT to expect staking rewards until the network becomes useful? Without transaction throughput, where are the rewards coming from? This really should be discussed by Charles to manage expectations to the community.
It is my understanding funds have been set aside specifically to help growth in this area. Initially I would imagine the funds will becoming from this pool Cardano has set aside (a part of it anyway). Once the network is fully operational and transactions start to increase, the need for these funds will decrease (which is what the plan is). Funds distributed from this growth fund will decrease every year. I stand to be corrected, but I believe that is what I read the plan is.
Thanks Joel. Only issue with this is that if you do the math on percentages of ADA staked. Say 50% of ADA holders stake their positions (Which at this point, I don’t see why you wouldn’t because what else are you doing with it…) This would be MASSIVE amounts of ADA every day that would have to get forked over in rewards to cover the spread. According to the staking calculators referenced by IOHK, someone with over a million ada (which is nothing) would be entitled to approximately 1/4 of the rewards per day on the current transaction throughput. I am certain that the monetary fund set aside to assist in this is not enough. Expectations should be managed. When they are not, this is what causes bad press and that is not what the project needs right now.
From: https://staking.cardano.org/en/
Over time as more people use Cardano, more transaction fees will be available to compensate for the decrease in monetary expansion.
For an arbitrary example of exponential decrease, we could set the policy of using 5% of the remaining Ada per year for incentives:
Year 1 700,000,000 13,300,000,000 (total for incentives) - decreases 5% each year.
If I am understanding this correctly, it sounds like they are planning to use ADA set aside for incentives. if Year 1 includes 700,000,000 for incentives, then activity means very little initially.
Again, it appears they have a plan for people to make a decent return on staking even if the network is not used for 10 years.
look at https://cardanodocs.com/cardano/monetary-policy/
“The remaining Ada, 13,887,515,354, will be issued after the launch through minting.”
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