Full nodes are servers running on a P2P network that allow peers to
use them to receive updates about the events on the network. These
nodes utilize significant amounts of traffic and other resources that
incur a substantial cost. As a result, a steady decrease in the amount
of these nodes has been observed for some time on the Bitcoin network
and as a result, block propagation times have been upwards of 40
seconds. Many solutions have been proposed such as a new reward scheme
by Microsoft Research and the Bitnodes incentive program.
Figure 1: Bitcoin Full nodes in the spring of 2014
These nodes are very important to the health of the network.
provide clients with the ability to synchronize and facilitate quick
propagation of messages throughout the network. We propose adding a
secondary network, known as the LiteGenX masternode network. These
nodes will have high availability and provide a required level of
service to the network in order to take part in the Masternode Reward
LiteGenX Masternode Reward Program - Cost and Payments
Much of the reason for the decrease of full nodes on the Bitcoin
network is the lack of incentive to run one. Over time, the cost of
running a full node increases as the network gets used more, creating
more bandwidth and costing the operator more money. As the cost rises,
operators consolidate their services to be cheaper to run, or run a
light client which does not help the network at all.
Masternodes are full nodes, just like in the Bitcoin network, except
they must provide a level of service to the network and have a bond of
collateral to participate. The collateral is never forfeit and is safe
while the masternode is operating. This permits masternode operators
to provide a service to the network, earn payment for their services
and reduce the volatility of the currency.
To run a masternode, the operator must demonstrate control over 5,000
LGX. When active, masternodes provide services to clients on the
network, and in return receive regular payment from the block reward.
Like miners, masternodes are paid from the block reward, 35% Ascending
up to 65% of which is dedicated to this program.
Due to the fact that the masternode rewards program is a fixed
percentage and the masternode network nodes are fluctuating, expected
masternode rewards will vary according to the current total count of
Payments for a standard day for running a masternode can be calculated
by using the following formula:
(n/t) * r*b*a
is the number of masternodes an operator controls
is the total number of masternodes r
is the current
block reward b
is blocks in an average day.