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What about reducing the collateral to 500 DASH? Now we have 6600 masternodes....
I'm not sure that works. But perhaps I'm missing something.
If you half the collateral, it doesn't follow that you double the masternodes.
First, the block reward hasn't changed, so the revenue to run nodes remains the same overall.
Second, going from one MN to two would potentially double the cost to run them - you have to ignore any speculation on price increases, although it would (speculating) potentially go up with real world adoption.
So, one server goes to two servers, but the reward remains the same.
If you introduce a micro fee, that would enable the network to scale with a reduction in collateral requirement.
Currently the true ROI is about 14%:
(blocks per day * avg reward * mn share / masternodes * days) = (reward at the end of the year)
576*6*.5/3270*365 = 192.88 DASH (19.2% of 1000 DASH)
Let's say a server costs $10 a month, so true ROI is about 144 DASH per year (14.4% of 1000 DASH).
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What happens if we cut it in half?
The collateral gets halved
The reward gets halved
Expenses remain the same
Overall return goes down
Node count should nearly double (slightly lower because of the reduced reward)
(blocks per day * avg reward * mn share / masternodes * days) = (reward at the end of the year)
576*6*.5/6490*365 = 97 DASH (19.6% of 500 DASH)
( notice it's not double 3270, that would be 6540... it's lower)
Let's say a server costs $10 a month, so true ROI is about 49.18 DASH per year (14.6% of 500 DASH)
All things being equal, it's just supply and demand working themselves out in something like a bond market. The market demands a return on average currently of about 14% after expenses, the idea is it carries over no matter what collateral is required. Nodes that are allocated before should be allocated after, even if the user decides he doesn't want to do it, that would raise the ROI on the market, which would drive people to setup more nodes, getting us back to where we're at now.
That help? It's a tad confusing