I have noticed in the zencash slack group, many of the early investors are pushing the developers toward having higher node payouts. According to the zencash whitepaper the payouts for the secure nodes (similar to a masternode) is 3.5%, which is much lower than that of dash.
Many of the early investors are pushing for a payout similar to dash and are citing that currencies like dash have done so well due to the masternode system. They cite other currencies like chaincoin as examples of other altcoins with masternodes that have great increases on the value. The devs have been pretty good about standing with their decision to keep the node payouts low.
@raf16 Besides the masternodes, it seems like dash has been developing their payment system to hopefully allow their currency become more widely used. Do you think that dash is an intentional pyramid scheme or just a misstep in their development? If was truely a pyramid scheme why would spend so much time on developement?
Topic: Masternodes are mostly pyramid schemes - page 2. (Read 1635 times)
Lately there is a lot of enthusiasm about coins with masternodes. Good examples of these are DASH etc. You guys probably won't like my opinion.
While the idea of masternodes is completely valid to improve network stability, value and node availability from a technical perspective. In my opinion it also is a pyramid scheme when the masternode requires a huge initial investment. Starting a masternode when it costs a high initial investment, forces you to buy in big and then freeze your assets (or lose masternode status). This causes scarcity and upward price pressure since you need to buy a lot of coins and hold them.
The new owner of the masternode then gets a daily payout for the services rendered of hosting that masternode. This payout is only interesting if the coin price follows an upward trend and not downward. As long as it holds upward more people will start a masternode causing the trend to continue. Also the total value for the first starters of masternodes increases since they bought in much more cheap.
Now imagine what happens when people realise there are way to many masternodes then needed for stability and availability of the network, and they start to cash out. Ask the question what can you do in real life with DASH that you cannot do with normal currency? Absolutely nothing!! It is brilliant technical idea, but it for the most part a big empty balloon like most alt coins.
The whole coin will come down crashing sooner or later. The people who started a masternode last are hurt the most like in every pyramid scheme.
Invest in smart blockchain idea's with a solid future plan in the real world, not in pyramid schemes. This really feels like the dot.com hype not that long ago.........most coins will go booooooooooom
While the idea of masternodes is completely valid to improve network stability, value and node availability from a technical perspective. In my opinion it also is a pyramid scheme when the masternode requires a huge initial investment. Starting a masternode when it costs a high initial investment, forces you to buy in big and then freeze your assets (or lose masternode status). This causes scarcity and upward price pressure since you need to buy a lot of coins and hold them.
The new owner of the masternode then gets a daily payout for the services rendered of hosting that masternode. This payout is only interesting if the coin price follows an upward trend and not downward. As long as it holds upward more people will start a masternode causing the trend to continue. Also the total value for the first starters of masternodes increases since they bought in much more cheap.
Now imagine what happens when people realise there are way to many masternodes then needed for stability and availability of the network, and they start to cash out. Ask the question what can you do in real life with DASH that you cannot do with normal currency? Absolutely nothing!! It is brilliant technical idea, but it for the most part a big empty balloon like most alt coins.
The whole coin will come down crashing sooner or later. The people who started a masternode last are hurt the most like in every pyramid scheme.
Invest in smart blockchain idea's with a solid future plan in the real world, not in pyramid schemes. This really feels like the dot.com hype not that long ago.........most coins will go booooooooooom
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