Will people who have their coins in masternodes be eligible for the lottery block system? Or do they need to have separate staked coins in a wallet?
Coins used for staking masternodes will go towards staking for the lottery block system.
Sweet. Do those with a higher tier masternode and/or more tokens in their wallet have a better chance of winning the lottery block?
Yes- our whitepaper has a really good explanation of how masternode levels effect your chances in the lottery block.