The idea of masternodes has fallen to the side for some time but are looking to make a comeback with crypto consultant Brian Colwell being at the helm. Masternodes are typically computers staked with tokens on a network that perform multiple functions on top of just running the software for the crypto. Multiple projects have been working with masaternodes recently including Zcoin and ZenCash.
Masternodes have major upside for passive income outside of just the typical token appreciation. As the computers are running extra programs, they also earn more money at little to no extra effort by the participants. These factors led Colwell to organize a tournament revolving around masternodes to gain publicity for the opportunities they create.
The tournament has recently been receiving some build up on Twitter. The objective is to determine through a single elimination bracket, what project can rally their community the best. The tournament, which started with 64 tokens, is now sitting with just 16 left.
Over 11,000 votes have occurred over the whole tournament showing a growing interest in this technology. There have been several heated arguments break out over several of the matchups as well, leading Colwell joke
We’re running it like a martial arts tournament, but it has devolved into eye gouging, brass knuckles.
In order to be a masternode, there is fairly significant upfront costs. The equipment alone runs several thousand dollars and there must also be an upfront investment in coins. This is important to keep in mind for masternodes as even though you will be making extra money for the services performed, your overall success will be determined by the success of the coin. The returns on masternodes will vary greatly due to this, but there are resources available to see costs and returns such as Masternodes.Online.
The ICO performed by Swarm Fund has also looked at using masternodes but including additional incentives. They are giving every masternode a stake in their token reserves. This will allow for them to gain from returns when those tokens are released later on. The extra earnings seen here will continue to become more prevalent over time as the number of projects that use masternodes grows.