- Decentralized Masternode Network
In order to run a Masternode, users must put up 1000 DRK as something akin to collateral, though unlike traditional collateral, the DRK never leaves the users possession. It can be moved or spent at any time by the user - doing so simply removes the Masternode from service and makes it ineligible to receive rewards.
What are masternodes ?
Are they VPSs ?
What do masternodes do exaclly on network ?
Who is the owner of them ?
How put 1000 coins at masterndes ?
How earning more mining reward from them ?
In a very very small nutshell...
Masternode is the name Dash calls dedicated full nodes, running on a VPS (virtual private server) that anyone can setup (<5 USD a months in general, good deals and slightly more work/setup <10 USD a year). Masternodes provide a service to the network and serve decentralized mixing so provide anonymity to InstantX transactions. For this service, the network rewards Masternode operators.
Anyone can run a Masternode, you just need 1000 Dash, that you safely keep in cold storage wherever you like, always maintaing full control over them, and is used as collateral to activate the VPS. You just issue some commands to prove you own 1000 Dash, and your eligible to run a Masternode.
The formula is basically ... ( 50% mining reward (5 dash * 0,5) * 576 blocks per day) / total number of MN's (currently around 3020) =
5 * 0,5 * 576 / 3020 = 0,4768 Dash on average per day.
https://dashpay.atlassian.net/wiki/display/DOC/Masternode+guide